Hyundai Motor Group's AI data center at the Saemangeum reclamation zone in North Jeolla Province will break ground next March, the Saemangeum Development Agency announced Thursday. The group has planned about 9 trillion won ($6.42 billion) in total investment at Saemangeum, covering an AI data center, a robot cluster, a water electrolysis plant, a solar power project and an AI hydrogen city. Solar power and hydrogen production facilities are targeted for ground-breaking by the end of next year.
The agency also said it will shift from a private investment attraction model to public-led development to strengthen project execution, with concentrated development of sites requiring land supply within 10 years.
The Saemangeum Development Agency announced the revised master plan Thursday alongside an update on Hyundai Motor Group's investment progress.
Agency Commissioner Moon Seong-yo said the revised plan "focuses on raising project execution capacity and speed by adjusting the development method and land-use framework and restructuring around a region- and industry-centered growth strategy," adding that it can be summarized in four directions: strengthening execution, supporting business-centered growth, co-developing with local communities, and harmonizing with the environment.
The revised plan significantly adjusts the location and scale of previously designated complexes, reorganizing the zone into four industrial complexes along with urban, energy and tourism land.
The shift to public-led development is intended to improve execution. The reclamation target under the 2021 plan — 240.5 square kilometers by 2050 — has been scaled back to 169.6 square kilometers by 2035, with public institutions including the Saemangeum Development Corporation taking the lead on reclamation.
An additional 12.2 square kilometers will be set aside as strategic reserve land available for mixed-use development based on corporate demand, bringing the total reclamation area to 181.8 square kilometers.
A total of 37.5 square kilometers of industrial land for factories, research facilities and similar uses will be supplied, and the current single industrial hub centered on the first industrial complex will be expanded to four.
Sites requiring land supply within 10 years will receive concentrated development, while renewable energy needed by businesses will be supplied through dedicated energy zones.
Construction of a wider road network is newly included in the plan. The north-south third-axis arterial road — a key trunk route — is set to break ground in 2030 following an ongoing preliminary feasibility study, and the road network connecting the second industrial complex with surrounding cities will also be reinforced.
To pursue business-centered, locally driven growth, the zone will be developed as an advanced industry hub for robotics and AI, with continued expansion of tax support including corporate tax and tariff reductions.
The agency plans to seek designation of Saemangeum as a "mega special zone" to make it a global-standard regulatory innovation hub. Renewable energy capacity will be expanded from 7 gigawatts to 10 gigawatts, and an RE100 industrial complex offering benefits such as corporate tax reductions will also be pursued. Under this initiative, the first industrial complex (zones 3, 7 and 8) and the third industrial complex (Buan area) would be designated as RE100 complexes in cooperation with North Jeolla Province, with a long-term goal of converting all four Saemangeum industrial complexes to RE100 status.
The four industrial hubs within Saemangeum will be distributed evenly near surrounding cities in coordination with local industries to reflect a mutual-growth strategy, while the location and area of environmental and ecological zones will be adjusted in areas of high ecological conservation value to minimize development-related damage.
Regarding Hyundai Motor Group's investment, the revised plan will incorporate related changes, including converting agricultural zone 3 into energy land.
The agency said it will provide not only site supply but also swift administrative support to ensure Hyundai Motor Group's 9 trillion won investment proceeds without disruption.
The robot manufacturing factory and AI data center — the core of Hyundai Motor Group's investment — will be located in zone 7 of the first industrial complex, a site selected for its proximity to an airport and relatively firm ground. Under Hyundai Motor Group's schedule, ground-breaking on the AI data center in March 2027 will be followed by phased construction of solar power and hydrogen production facilities by the end of 2027.
To that end, Hyundai Motor Group plans to apply for an architectural review of the AI data center in September, and the agency aims to secure a building permit before year's end. The group is also reviewing additional investment in the data center beyond the plan announced in February, and is pursuing co-investment from affiliated companies.
The agency said it will work with Hyundai Motor Group and the Ministry of Land, Infrastructure and Transport to designate the Saemangeum waterfront city as an AI pilot city, actively using it to demonstrate physical AI as part of efforts to build an advanced mobility-centered city incorporating robotics, autonomous driving, hydrogen vehicles and demand-responsive transit.
The agency plans to begin gathering public input on the revised master plan at a residents' briefing Monday, followed by consultations with relevant agencies and civic groups, a public hearing in September and finalization of the revised plan by October after a formal review process.
Commissioner Moon said the agency will "listen carefully to local opinions and push ahead with reclamation at pace to deliver results the public can feel," adding that it will "swiftly provide the support Hyundai Motor Group needs and build the foundation for second and third global companies to continue investing in Saemangeum."
smh@heraldcorp.com
