Saemangeum Development Accelerates Under Public Leadership... Hyundai Motor AI Data Center to Break Ground in March Next Year

Saemangeum Agency Unveils Revised Master Plan
Supporting Hyundai Motor Group’s KRW 9 Trillion Investment
Data Center to Be Established in Section 7 of Industrial Complex 1

The Saemangeum land reclamation project will shift from being led by private entities to being driven by public institutions. In order to improve project execution capabilities, the originally planned reclamation area will be reduced, while the size of industrial land for factories and research facilities will be tripled. The artificial intelligence data center project, which Hyundai Motor Group is planning to launch, will finalize its architectural plans by next month and aims to break ground in March of next year.

The Saemangeum Development and Investment Agency announced on August 20 that it has prepared a revised master plan containing these changes. As a long-term comprehensive development strategy for the Saemangeum project, the agency explained that the revised plan focuses on adjusting the conventional development model and land classification system, as well as reorganizing the strategy around regional and industry-based growth.

According to the original plan, 240.5 km² was to be reclaimed by 2050, but this has been changed to 169.6 km² by 2035. Public institutions such as the Saemangeum Development Corporation will take the lead. The Saemangeum Development Corporation, which currently has zero debt, is in a favorable position to raise funds through means such as issuing corporate bonds. A 12.2 km² area has been set aside as a strategic reserve that can be flexibly utilized according to corporate demand.

Construction site of Sections 7 to 8 in the Saemangeum National Industrial Complex, Gunsan, Jeonbuk, under development in July this year. Photo by Yonhap News

The industrial land area will be expanded to 37.5 km², an increase of 2.1 times compared to the previous plan of 12.1 km². At present, companies are mainly concentrated in Industrial Complex 1, but additional industrial bases will be established so that complexes 2 through 4 can be developed in the future. Areas with deep water and high reclamation costs, or limited land use due to airport noise, will not be reclaimed and will instead be converted to energy land. The main north-south thoroughfare, “North-South Axis Road 3,” will commence construction in 2030 after the ongoing preliminary feasibility study is completed.

Measures to support high-tech industries, which did not exist previously, have also been incorporated in the revised master plan. Tax support, such as corporate tax and customs duty reductions, will be expanded, and plans are in place to promote the establishment of “mega special zones” and RE100 industrial complexes. Mega special zones are regulatory sandbox areas for new industries that receive integrated support in infrastructure and policy finance, with legislation currently being pursued by the Ministry of Trade, Industry and Energy. The bill for RE100 industrial complexes is under review in the National Assembly.

Together with North Jeolla Province, the agency is promoting the designation of complexes 1-3, 1-7, 1-8, and 3rd complex near Buan as RE100 industrial complexes, with a long-term goal of converting all four Saemangeum industrial complexes to RE100 operations. In Industrial Complex 3, a portion of tourism and leisure land will be converted to industrial land, developing it as a hydrogen-specialized complex. The agency stated that it will be able to secure sufficient electricity and water supply to meet demand from high-tech industries.

Industrial Complex 1 will be linked to investment industries from Hyundai Motor Group. Complex 2 will foster the advanced agricultural machinery industry as a regional strategic sector, and Complex 4 will be developed as a hub for renewable energy equipment and the full spectrum of RE100-related industries. To improve water quality in Saemangeum Lake and prevent flooding, additional water gates will be installed, along with the construction of a tidal power generation facility.

To support Hyundai Motor Group’s investment in the Saemangeum area, section 3 of the agricultural land will be converted to energy land to host ground-based solar facilities. Robot manufacturing plants and AI data centers will be located in section 7 of Industrial Complex 1. The company has determined that this is the optimal location, given site and ground conditions as well as transportation. After submitting the architectural review application for the AI data center in September, the goal is to obtain construction approval by the end of this year.

The Saemangeum Development and Investment Agency also noted that Hyundai Motor Group is considering additional investments, taking into account mid- to long-term demand beyond the plan announced earlier this February, and is working to encourage related companies to invest together in Saemangeum. In order to allow Hyundai Motor Group and partner company employees to live within Industrial Complex 1, the land in section 9, originally designated for industrial and research facilities, will be converted to residential use. The agency is also pushing to designate the waterfront city as an AI demonstration city to build it as a hub for advanced mobility.

Seongyo Moon, Commissioner of the Saemangeum Development Authority, is explaining the basic plan amendment at the Ministry of Land, Infrastructure and Transport press room in the Government Complex Sejong on the 20th. Provided by Saemangeum Authority.

Starting with a residents’ briefing session on August 24, the agency will collect opinions from related institutions and civil society organizations. A public hearing will be held next month, and the final plan will be confirmed by October after deliberation by the Saemangeum Committee and other necessary procedures. Seongyo Moon, Administrator of the Saemangeum Development and Investment Agency, stated, “We will fully listen to local opinions and accelerate the reclamation process to deliver tangible results for the public. We will also expedite necessary support for Hyundai Motor Group, and build a foundation for a second and third wave of global companies to continue investing in Saemangeum.”

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