"With Regional, Hydrogen, and Robotics Advantages, Why Hyundai's Saemangeum Is Emerging as the Next Investment Destination"

Policy Finance and Financial Authorities Closely Monitoring the Project
Commercial Banks Seeking Regional Investment Opportunities Also Show Strong Interest in Saemangeum
Focus on Advanced Keywords: Physical AI and Hydrogen
High Potential for Support Including Low-Interest Loans

Hyundai Motor Group's 'Saemangeum Town' project in Jeonbuk is being strongly considered as the next investment destination for the National Growth Fund. Major policy financial institutions, including Korea Development Bank, Industrial Bank of Korea, Export-Import Bank of Korea, and Korea Credit Guarantee Fund, are expected to soon sign a memorandum of understanding (MOU) with Hyundai Motor to foster advanced industries. Financial authorities are also reviewing the plan favorably. The Saemangeum project is seen as fulfilling two key national priorities: revitalizing regional investment and advancing future high-tech industries such as hydrogen and robotics.

Yonhap News

According to the financial sector on April 3, authorities are proactively reviewing options such as providing low-interest loans from the National Growth Fund for Hyundai Motor’s Saemangeum Town. Since there has been a need to identify suitable regional investment destinations, the fact that this project supports high-growth potential advanced industries provides strong policy justification. In particular, the authorities are focusing on Hyundai Motor’s announced plans for 'Physical AI (including robotics)' and the 'AI Hydrogen City' as key components of an advanced value chain. Hyundai Motor plans to develop the following facilities on a 1.12 million square meter site in Saemangeum, Jeonbuk: ▲ AI data center (5.8 trillion won) ▲ water electrolysis plant (1 trillion won) ▲ solar power generation (1.3 trillion won) ▲ robot manufacturing and parts cluster (400 billion won) ▲ AI hydrogen city (400 billion won).

Commercial banks, which need to identify regional investment opportunities as part of their efforts to strengthen 'productive finance,' are also paying close attention to the Saemangeum project. Although authorities have been emphasizing the expansion of regional finance, commercial banks have found it difficult to identify large-scale local projects worthy of significant capital deployment.

An executive at one commercial bank stated, "If Hyundai Motor enters Saemangeum, it will accelerate the relocation of secondary and tertiary suppliers. In an environment where suitable investment opportunities are hard to find, this presents an appealing option that can contribute to the regional economy while minimizing the risk of non-performing assets." Six policy financial institutions have recently formed a consultative body to accelerate support for the Saemangeum project, in line with this approach.

However, the specific scale and method of support through the growth fund or policy finance are still under discussion. The financial sector believes that it will be difficult for Hyundai Motor to self-finance the entire 9 trillion won investment it has proposed. This is because the largest single component, the AI data center, alone will require 5.8 trillion won, and other projects such as the water electrolysis plant and solar power generation will each require funds in the trillion-won range.

Accordingly, it is widely expected that long-term, low-interest funding from the government will be essential. Hyundai Motor is reportedly planning to request top-priority financial support for the construction of the AI data center, which is a core infrastructure for the implementation of physical AI, including robotics.

Meanwhile, President Lee Jaemyung has expressed the government’s strong commitment to supporting Hyundai Motor’s investment in Saemangeum. At the Saemangeum Robot, Hydrogen, and AI City Investment Agreement Ceremony held at the Gunsan Saemangeum Convention Center in Jeonbuk in February, President Lee stated, "The government will respond to the bold decisions of businesses with equally bold support. We will ensure that this investment becomes the best model for regional expansion and returns even greater benefits to the companies involved." Prime Minister Kim Minseok also chaired the 'Saemangeum·Jeonbuk Grand Innovation TF' meeting in March, emphasizing, "Hyundai Motor’s investment marks the start of hypermodernization for both Jeonbuk and the Republic of Korea. It is significant in that it merges advanced-driven growth with region-driven growth."

This content was produced with the assistance of AI translation services.