Five investment zones to draw 787.5 billion won in private capital, from space industry hub to seaweed export cluster

The Ministry of Land, Infrastructure and Transport announced Tuesday that it has selected five sites as the final winners of its 2026 investment-leading zone competition: Cheongju in North Chungcheong Province, Muju in North Jeolla Province, Jindo in South Jeolla Province, Boeun in North Chungcheong Province, and Inje in Gangwon Province.

Investment-leading zones are a key policy instrument for building growth momentum in small and mid-sized cities by nurturing regional growth hubs and stimulating private investment. This year's competition was carried out under the government's "5 Poles, 3 Specials" balanced-growth strategy, which aims to develop non-metropolitan regions into growth axes on par with the Greater Seoul area, and under a broader push for locally driven balanced development.

The selected projects align with strategic industries the government is actively promoting, including aerospace, AI data centers, and renewable energy facilities powered entirely by water-thermal energy under the RE100 framework. They also extend the reach of advanced industries such as semiconductors and AI beyond the metropolitan area and into regional cities.

Cheongju will develop an eco-friendly specialized complex that uses water-thermal energy drawn from Daecheong Dam — which maintains a stable year-round water temperature — to cool data centers and smart farms. The project addresses the heavy power demands of data center cooling by tapping the dam's thermal energy to cut both energy consumption and carbon emissions. Korea Water Resources Corporation will invest 351.5 billion won ($228 million) in the project.

Muju will host a comprehensive aerospace manufacturing base where Hyundai Rotem will carry out the full cycle — from research and development of supersonic jet engines and space launch vehicle engines through to prototype production, testing and mass production — all at a single site. The zone sits within an hour of major research hubs including the Agency for Defense Development and the Korea Aerospace Research Institute in Daejeon. Hyundai Rotem will invest 303.4 billion won in the project.

Jindo will leverage its strengths as a leading production area for seaweed and seafood to build a "K-Food Seaweed Export Hub" — a global seaweed cluster that integrates production, processing, research and exports under one roof. The complex will include seaweed production and processing facilities and an aquatic seed commercialization center, along with expanded infrastructure such as water supply systems.

Boeun will develop a resort and leisure complex at the Gubyeongsan tourist area, which draws visitors for Songnisan and Beopjusa temple tourism as well as sports training camps but has long struggled to retain them due to a shortage of accommodation. The project will add hotels, condominiums and other lodging and recreational facilities, along with infrastructure including the Gubyeongsan interchange (southbound) and water and sewage systems.

Inje will build a defense and military-supply specialized industrial complex targeting demand from military units in the border region, consolidating military food and supply manufacturing and logistics in one location. Linked to Inje station on the East-West High-Speed Railway, the project is designed as a hub-building initiative to expand employment and residential foundations in the area.

Investment-leading zones receive a range of incentives to attract private capital, including tax and levy reductions and relaxed building-coverage and floor-area-ratio limits. Zones that fall within designated growth-promotion areas are eligible for up to 10 billion won in government funding for infrastructure development. Project operators receive a 50 percent reduction in corporate and income taxes for three years, along with cuts to development charges, while tenant companies are fully exempt from corporate and income taxes for three years. Acquisition and property taxes may also be reduced by up to 50 percent under local ordinances.

Shin Gwang-ho, the ministry's land policy director, said the selection process focused on drawing advanced-industry investment to the regions and creating quality jobs for young people to develop the provinces into hubs of balanced growth. "We placed particular emphasis on verifying the completeness and feasibility of project plans to ensure swift implementation," he added.

Last year, five sites were designated as investment-leading zones: Yeongwol in Gangwon Province, Jeonju and Namwon in North Jeolla Province, and Goseong and Geochang in South Gyeongsang Province.