South Gyeongsang Province, in the nation’s southeastern region, aims to lead innovation in Korea’s mechanical engineering sector as it hosts a new creative economy center for related technological convergence.

The Gyeongnam Center for Creative Economy and Innovation, which opened Thursday in an industrial complex in Changwon, is the latest in a series of government-driven regional offices helping to nurture start-ups and venture companies across several industries.

Teaming up with heavy industry giant Doosan Group, the center is expected to play a key role in revitalizing the nation’s faltering machinery industry and related technological innovation. 

The opening ceremony was attended by some 150 guests, including President Park Geun-hye, South Gyeongsang Province Gov. Hong Joon-pyo and Doonsan Group chairman Park Yong-maan.

“This Changwon Industrial Complex is a living history of the nation’s machinery industry that has driven economic growth for decades,” said Park in a speech.

“Amid smart revolution within related industries, I hope the new center will lead creative and innovative experiments among Korean firms.”

She also expressed high expectations about the lucrative water management business, urging the center to play a key role in creating a related business hub in the region.

South Gyeongsang Province currently makes up 28 percent of the nation’s total machinery and parts production and 24 percent of related exports. Due to China’s staggering growth in the field, Korean firms as a whole have felt pressure to overhaul the industry.

The provincial government, in partnership with Doosan, will support smaller firms to develop smart machines and parts that use high-tech materials. Together with other big businesses, the group plans to offer a total of 120 billion won for some 800 mid- and small-sized firms by 2020.

Additional investment will be poured into a monitoring system for machine tools that allow manufacturers to monitor its performance on the Internet. The related market is expected to grow to 300 billion won by 2020.

Doosan, the No. 1 player in seawater desalination, will develop IT solutions for managing water resources and turning seawater into freshwater ― a growing business for global players. It also plans to support the export of related systems to overseas markets such as the Middle East, offering new job opportunities for Korean engineers.

The group, with Daewoo Shipbuilding and Marine Engineering and their suppliers, also will partner for the localization of marine plant parts that endure low temperature, offsetting related imports worth 420 billion won for the next five years.

“The center will nurture infrastructure for Korean firms in the field of mechanical engineering,” said an official from the Ministry of Science, ICT and Future Planning. “It will also pave a way for Korea to take an earlier edge in the soaring global water market.”

By Lee Ji-yoon (jylee@heraldcorp.com)