Hyundai Rotem inks MOU with Muju County on $205M aircraft engine plant
2026.03.03 17:39
MUJU COUNTY, North Jeolla — Hyundai Rotem will invest some 300 billion won ($205 million) to build an aircraft engine manufacturing plant in Muju County, North Jeolla, establishing the province’s first domestic production base for supersonic and hypersonic engines with a plan to hire 130 workers by 2034.
North Jeolla and Muju County signed a memorandum of understanding with Hyundai Rotem on Tuesday at the provincial government building in Jeonju. North Jeolla Gov. Kim Kwan-young, Muju County Mayor Hwang In-hong and Hyundai Rotem CEO Lee Yong-bae attended the signing ceremony.
The project marks a major investment in a rural county of about 22,000 residents that faces population decline. Local officials expect the plant to help draw related businesses, increase the number of residents staying in the area and boost the regional economy.
Hyundai Rotem plans to build the facility on a 760,330-square-meter (188-acre) site in Muju County, investing the funds in phases from this year through 2034. The complex will produce supersonic ducted ramjet engines, hypersonic dual ramjet engines and methane engines for space launch vehicles.
Supersonic ducted ramjet engines power high-speed missiles by drawing and compressing outside air before burning fuel to generate thrust, enabling flight at speeds above Mach 1. Hypersonic dual ramjet engines use a dual combustion system to operate at speeds above Mach 5.
Both ducted ramjet and hypersonic dual ramjet engines power next-generation missiles and are considered important to the future competitiveness of Korea’s defense and aerospace industries.
Hyundai Rotem aims to establish a comprehensive aerospace production base that covers research and development, prototype manufacturing, testing and mass production on a site roughly equivalent to 107 football fields. The investment plan includes 130 new hires.
Founded in 1977, Hyundai Rotem has focused on rail systems, defense and plant businesses and recently expanded into aerospace. The company led the development of the KTX high-speed train and exported K2 tanks to Poland, strengthening Korea’s defense exports. It has also produced hydrogen-powered trams as part of its push into environmentally friendly mobility.
Hyundai Rotem’s headquarters and main production facilities are located in Changwon, South Gyeongsang. Company representatives said the Muju investment will secure a new strategic base in North Jeolla.
With the affiliate's agreement, Hyundai Motor Group is making a second investment in North Jeolla.
The group on Friday signed a 9 trillion won investment agreement in Saemangeum, North Jeolla, covering robotics, AI data centers and hydrogen projects. Since the current provincial administration took office in 2022, North Jeolla has signed investment agreements totaling more than 27 trillion won with 254 companies, including affiliates of Samsung Electronics, Posco, LS Group and Doosan.
Muju County expects the investment to create jobs, increase the number of residents and attract partner companies. More than 78 percent of the county’s 631.85 square kilometers (244 square miles) fall under development restrictions, including national parks and waterfront protection zones.
Officials note that the county’s mountainous terrain can provide advantages for defense facilities that require security and safety.
North Jeolla officials plan to designate the industrial complex area in Muju an “opportunity development zone” and provide financial incentives to attract businesses, while Gov. Kim echoed that view and pledged provincial support for the project.
“This will serve as an important turning point for Muju, which has a weak industrial base,” Muju County Mayor Hwang said.
“This investment marks a starting point for Hyundai Rotem and North Jeolla in advanced defense and aerospace industries,” Kim said.
Hyundai Rotem also framed the project as part of its broader expansion into future industries.
“We will contribute to North Jeolla’s growth as a leading region in future industries,” Hyundai Rotem CEO Lee said.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
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