Ulsan pushes to become global hub for industrial AI transformation

Ulsan is pushing to transform itself into a world-class hub for industrial AI transformation, in line with the central government's three national mega-projects.

Mayor Kim Sang-uk chaired a briefing on response strategies for the three mega-projects Friday afternoon at City Hall, where officials decided to pursue policies that leverage Ulsan's comparative strengths in manufacturing and energy infrastructure to secure new growth engines.

The drive gained urgency after Samsung, SK Group and other conglomerates announced on June 29 a combined investment plan of 4,755 trillion won ($3.24 trillion) targeting the Yeongnam, southwestern and Chungcheong regions, making it critical for local governments to develop strategies to secure a foothold in future industries.

After a comprehensive review of the local industrial ecosystem, the direction of the city's ninth elected administration and private investment plans, Ulsan decided to concentrate its efforts on physical AI and AI data centers — two areas where the city holds clear competitive advantages.

On the physical AI front, Ulsan is home to manufacturing complexes that accounted for 14 percent of South Korea's total manufacturing output in 2023 and 12 percent of exports in 2025, giving it the most favorable conditions for securing the high-quality industrial field data that lies at the heart of industrial AI transformation.

Building on that base, the city plans to lead the development and demonstration of physical AI technologies spanning robotics, shipbuilding and automobiles, then spread those technologies across the broader Yeongnam region — including Gumi, Pohang and Changwon.

The city is also accelerating its bid to become a global AI data center hub, anchored by South Korea's first 1-gigawatt-class AI data center.

To drive the initiative forward, Ulsan plans to establish an "Ulsan Industrial AI Transformation Council" — an industry-academia-research-government platform bringing together leading companies such as Hyundai and SK Group, Greater Seoul-based IT firms including Naver Cloud and SK Telecom, and universities including the Ulsan National Institute of Science and Technology (UNIST), Kyungpook National University and Chonnam National University.