[Interview] "Full Administrative Support for Hyundai Motor's 9 Trillion Won Investment... Saemangeum AI Center Approval Within This Year"

Interview with Mun Seong-Yo, Administrator of Saemangeum Development Agency

Increase in Corporate Inquiries Following Hyundai Motor Investment

China’s Ministry of Commerce Considers Visit to Saemangeum

Easing of Public Rental Housing

"This month, Hyundai Motor is expected to submit an application for the construction review of its artificial intelligence (AI) data center. In order to break ground without delay next March, we need to expedite the construction permit process within this year. We will ensure that no administrative procedures cause any delays."

Administrator Mun Seong-Yo of Saemangeum Development and Investment Agency is giving an interview to The Asia Business Daily. Photo by Dongju Yoon

On September 1, Administrator Mun Seong-Yo of the Saemangeum Development and Investment Agency met with The Asia Business Daily at the Saemangeum Investment Exhibition Hall in Yongsan-gu, Seoul, and stated, "I believe 'speed' is the greatest form of support for companies." This reflects his strong determination to fully support Hyundai Motor Group’s previously announced 9 trillion won investment plan in Saemangeum.

In this context, last month the Saemangeum Development and Investment Agency announced a revised master plan, advancing the Saemangeum reclamation target from 2050 to 2035—15 years earlier—while shifting the reclamation leadership to the public sector. This was Administrator Mun’s first media interview since the announcement of the revised plan.

Administrator Mun emphasized that the revised master plan is not just a blueprint, but a set of achievable goals for the next ten years. Regarding Saemangeum’s future in a decade, he expressed his ambition, stating, "By around 2035, Saemangeum will have become a hub for cutting-edge strategic industries with fully developed infrastructure."

Administrator Mun Seong-Yo of the Saemangeum Development and Investment Agency is being interviewed by The Asia Business Daily. Photo by Dongju Yoon

-What is the most significant change in this new master plan?

▲ In the past, land reclamation was mostly left to the private sector, which meant there was virtually no clear developer. Projects faced recurring delays whenever investors couldn’t be found. Now, the Saemangeum Development Corporation will take the lead directly. Previously, there was also the issue of planning for sites before confirming actual demand, but this time, industrial land is being planned in response to company demand. The most significant difference is the presence of both a designated developer and actual market needs. A separate council chaired by the Prime Minister, with the participation of relevant ministries, has also been established—this did not exist before. Although the overall reclamation area will be reduced, the amount of industrial land available for actual use by companies will increase. In the previous plan, of the 56㎢ set aside as industrial land, only about 23㎢—excluding solar power and new airport sites—was available for company use. The current plan is to increase this to 37.5㎢ by 2035.

-In the past, some major corporate investments were canceled. What makes Hyundai Motor's 9 trillion won investment different?

▲ This time, a detailed investment implementation schedule has been set, and work has already begun. Affiliates such as Hyundai Engineering are working on designs. The first project—a 5.8 trillion won AI data center—is slated to break ground next March. By the end of next year, construction will begin on solar power generation and a water electrolysis plant. The goal for the robotics factory is to start construction in 2028 and complete Phase 1 by 2029. Once the building permit procedures begin this month, we plan to complete all necessary procedures within this year so there are no delays for the March groundbreaking. Working-level staff are in daily contact with Hyundai Motor representatives, and I also meet with them frequently.

-Were there any administrative hurdles?

▲ Regarding Hyundai Motor's AI data center, there was concern that the 'colocation' model—where internal space is rented out to client companies—could be interpreted as subleasing state-owned property. Following continuous consultation with relevant ministries, we obtained an authoritative interpretation clarifying that this does not constitute subleasing state-owned land but is instead a form of technical and spatial collaboration occurring within a privately owned building. We have thus created a precedent to prevent similar issues in future data center projects.

-There is ongoing discussion about reducing the reclamation license fee, but could this lead to controversy over special treatment for Hyundai Motor?

▲ According to the Saemangeum Development Corporation’s existing 'Land Reclamation License Management Regulations,' fees can be exempted when operating in an investment promotion district or for demonstration projects involving new technologies. We are discussing ways to alleviate the burden for Hyundai Motor Group in accordance with those rules, strictly within the bounds of legality and fairness.

-Why do you think Hyundai Motor chose Saemangeum?

▲ The type of project Hyundai Motor is planning requires vast land areas. The solar power generation, AI data center, and hydrogen production facilities are all interconnected. They also need stable sources of electricity and water. It would be hard to find a site in Korea where all of these could be built together. I believe these factors made Saemangeum the optimal choice.

-What has been the response from other companies?

▲ There has definitely been a marked difference before and after Hyundai Motor’s investment decision. Even before, there were inquiries about investment, but after Hyundai’s decision, inquiries have increased significantly in both frequency and scale. According to China's Ministry of Commerce, they plan to visit Saemangeum with Chinese companies soon. Since the Chinese government is directly involved, there are high expectations for attracting investment to the Korea-China Industrial Cooperation Complex within Saemangeum.

-If companies move in, workers will need housing. What are your plans?

▲ We plan to offer 4,282 rental units in Saemangeum’s Smart Waterfront City—1,502 units in Zone 1 and 2,780 units in Zone 3. We are considering designating some of these as affordable public rental housing for employees of companies moving in. We are not limiting our focus to the waterfront city alone; many Hyundai Motor and partner company employees will likely choose to reside in established cities such as Gunsan. We are also discussing turning the sale-based housing units planned by Korea Land & Housing Corporation (LH) into rental units. If existing public rental income criteria, residency eligibility, and duration requirements are applied rigidly, it might be difficult for industrial workers to qualify. We are reviewing options for more flexible standards in consultation with the Ministry of Land, Infrastructure and Transport, LH, Jeonbuk Province, and others.

-What will Saemangeum look like in ten years?

▲ Saemangeum will become an advanced strategic industrial hub, fundamentally different from today. Key social overhead capital (SOC) such as railways, airports, and ports will be completed by around 2033. By approximately 2035, the area will be equipped with outstanding infrastructure, and the quality of life for residents will be dramatically improved.

Administrator Mun Seong-Yo of the Saemangeum Development and Investment Agency is posing. Photo by Dongju Yoon

▲ Jeju ▲ Jeju National University High School ▲ Korea University, Department of English Language and Literature ▲ 37th Civil Service Exam ▲ Master’s in Economics, University of Illinois, USA ▲ Director of Construction and Urban Affairs, Ministry of Land, Infrastructure and Transport, Sejong City ▲ Head of Urban Regeneration Business Planning Division ▲ Deputy Administrator, Multifunctional Administrative City Construction Agency ▲ Director General for Land and Cities, Ministry of Land ▲ Director General for Planning and Coordination

Dialogue: Choi Ilkwon, Economic and Finance Editor & Head of Construction and Real Estate Department; Compiled by: Choi Seoyoon, Reporter

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