Powder metallurgy (PM) method is one of the most effective methods for the production of composite materials. However, there are obstacles that limit the production of magnesium matrix composites (MgMCs), which are in the category of biodegradable materials, by this method. During the weighing and mixing stages, risky situations can arise, such as the exposure of Mg powders to oxidation. Once this risk is eliminated, new MgMCs can be produced. In this study, a paraffin coating technique was applied to Mg powders and new MgMCs with superior mechanical and corrosion properties were produced using the hot pressing technique. The content of the composites consist of an Mg2Zn matrix alloy and Al2O3 particle reinforcements. After the debinding stage at 300 °C, the sintering process was carried out at 625 °C under 50 MPa pressure for 60 min. Before and after the immersion process in Hank’s solution, the surface morphology of the composite specimens was examined by scanning electron microscopy (SEM) and energy dispersive spectroscopy (EDS) analysis. With the hot pressing technique, composite specimens with a very dense and homogeneous microstructure were obtained. While Al2O3 reinforcement improved the mechanical properties, it was effective in changing the corrosion properties up to a certain extent (2 wt.% Al2O3). The highest tensile strength value of approximately 191 MPa from the specimen with 8 wt.% Al2O3. The lowest weight loss and corrosion rate were obtained from the specimen containing 2 wt.% Al2O3 at approximately 9% and 2.5 mm/year, respectively. While the Mg(OH)2 structure in the microstructure formed a temporary film layer, the apatite structures containing Ca, P, and O exhibited a permanent behavior on the surface, and significantly improved the corrosion resistance.