South Gyeongsang Province to invest W6b in low-carbon smart farming complex in Geochang-gun

South Gyeongsang Province announced Monday it will build a low-carbon shared energy facility in Daepyeong-ri, Geochang-eup, Geochang-gun, at a total project cost of 6 billion won ($4.48 million). The project gained momentum after being selected for a national grant competition run by the Ministry of Agriculture, Food and Rural Affairs, securing 4.2 billion won in central government funding.

The project aims to reduce energy costs for greenhouse farming households. The province plans to drill 273 geothermal boreholes across a 4-hectare site between 2027 and 2028, establishing a shared heating and cooling infrastructure. Once complete, the facility will supply geothermal energy to 4 hectares of cultivation space — 2.8 hectares for strawberries and 1.2 hectares for tomatoes — cutting dependence on fossil fuels and lowering energy expenses.

Energy costs, including heating and cooling, account for roughly 70 percent of total production costs for greenhouse farming households. The geothermal infrastructure is expected to ease that fixed-cost burden significantly.

The project's scope also expanded through the grant selection process. The original application sought 3.54 billion won, but the total project cost was raised to 6 billion won during evaluation — an increase of 2.46 billion won. The central government will cover 70 percent of the total, or 4.2 billion won.

The low-carbon shared energy facility is linked to a separate smart agriculture development zone that South Gyeongsang Province is building from 2025 to 2027 at a total cost of 20 billion won. That project will develop youth-lease smart farms on the same 4-hectare site in Daepyeong-ri, with two strawberry greenhouses and one tomato greenhouse planned.

The province intends to connect the smart farms with the shared heating and cooling facility to reduce the initial farming burden on young agricultural workers and improve energy efficiency across the horticultural complex. The two projects are scheduled to converge in 2027, allowing smart farm construction and energy infrastructure development to proceed in tandem. The province said it aims to build a low-carbon smart farming foundation that raises both productivity and energy efficiency.

"We have laid the groundwork to meaningfully reduce the farming burden on young agricultural workers by linking the smart agriculture development zone with low-carbon energy," said Ryu Hae-seok, director general of agricultural policy at South Gyeongsang Province. "We will continue building an advanced, eco-friendly agricultural foundation that can sustainably strengthen competitiveness in the field."