[Report] Hyundai's 9-Trillion-Won Investment Marks End of "Unfulfilled Hopes"... Saemangeum to Emerge as AI and Robotics Hub

Saemangeum 1st Industrial Complex Plot 7 to Begin Construction in March

Advantage in Securing Sites for Power Supply and AI Testbed

Hyundai Motor Group to Establish AI Data Center by 2027

On September 11, at the Saemangeum National Industrial Complex in Gunsan, Jeonbuk, dust rose in the air as cargo trucks dumped dredged soil composed of earth, sand, and gravel. At Section 8, where reclamation work is underway, heavy-duty drilling rigs were conducting boring operations to assess the depth of the bedrock. Beyond Plot 7, where land reclamation is already complete, a glimpse of the sea's surface reminded us that this area was once ocean. By 2035, Hyundai Motor Group's artificial intelligence (AI), robotics, and hydrogen infrastructure will be established on this 1.34㎢ site—an area comparable to 188 football fields.

On the 11th, Section 7 of Zone 1 in the Saemangeum National Industrial Complex, Gunsan, Jeonbuk Province. Here, Hyundai Motor Group plans to invest 9 trillion won to establish an AI data center, a robot cluster, and a water electrolysis plant. Photo by Lee Jieun

This year marks the 35th anniversary of the start of the Saemangeum development, which has gained new momentum thanks to Hyundai Motor Group’s 9-trillion-won investment commitment. By 2035, Hyundai Motor Group plans to establish an AI data center, a robot manufacturing and parts cluster, a water electrolysis plant, solar power facilities, and an AI hydrogen city in Saemangeum.

Previously, the Saemangeum Development and Investment Agency prepared an amended master plan to accelerate reclamation through public-led development and to expand industrial land, presenting a blueprint to foster the area as a hub for high-tech industries. Beginning with Hyundai Motor Group’s AI data center in March next year, these large-scale investment plans will move into full-scale implementation.

Hyundai Motor Group’s Hub for AI and Robotics at Plot 7… AIDC to Break Ground in March Next Year

The area drawing attention with Hyundai Motor Group’s investment is Plot 7 of Zone 1 in the Saemangeum National Industrial Complex. The entire Saemangeum National Industrial Complex covers 5.6 million pyeong (18.5㎢), of which Plots 1, 2, 5, and 6—making up 40% of the industrial area—have completed allocations, mainly to secondary battery companies. Plot 7, where Hyundai’s facilities will be located, along with Plot 8, currently under reclamation, are planned to be fostered as hubs for advanced AI industries.

On the 11th, heavy equipment drilling machines were conducting drilling work at Section 8, Phase 1, Saemangeum National Industrial Complex in Gunsan, Jeonbuk. Photo by Lee Jieun

The AI data center in this area will be the first project to begin construction next March. This will be a key location where data necessary for implementing physical AI, such as autonomous vehicles and robotics, is gathered. The project aims to secure computational power equivalent to 50,000 GPUs, with the largest portion of investment—5.8 trillion won—being allocated here. Completion is targeted for 2031. A gigawatt (GW)-scale solar power facility worth 1.3 trillion won will also be built by 2035. Renewable energy produced here will serve as a power source for the AI data center and the AI hydrogen city.

Additionally, 1 trillion won will be invested to construct a 200-megawatt (MW) water electrolysis plant. The Saemangeum Development and Investment Agency expects this investment to create 70,000 jobs and generate economic effects worth 16 trillion won, acting as a catalyst for regional development.

An official from the Saemangeum Development and Investment Agency stated, "In the first phase, we plan to develop 120,000 pyeong out of the total 400,000 pyeong at Plot 7. Including upstream and downstream industry workers, we expect around 70,000 jobs to be created. Influenced by Hyundai's investment, many companies are expected to show interest in Plot 8, where reclamation is currently underway."

GS Group affiliates and Samsung Electronics Deliberate on Investments

The Saemangeum Development and Investment Agency, which is leading the development, has detected shifts in the market before and after Hyundai Motor Group’s investment decision. It is reported that leading companies—including GS Group affiliates, Samsung Electronics, and the SK consortium—are considering investments in the Saemangeum National Industrial Complex. Previously, Samsung Electronics committed to investing 20 trillion won in wind and solar cell businesses in Saemangeum in 2011 but withdrew due to a lack of business feasibility. However, with the finalized 9-trillion-won investment by Hyundai Motor Group, not only major Korean conglomerates but also Chinese secondary battery, logistics, and transportation firms are showing renewed interest in Saemangeum. Recently, representatives from China's Ministry of Commerce and more than 20 Chinese companies visited Saemangeum for investment discussions.

Establishing an AI data center and energy production facilities in parallel, coupled with a testbed for autonomous driving and robotics technology demonstration, requires a vast site. The government’s strong support and the provision of large-scale sites where power and production facilities can be developed are cited as attractive incentives for corporate investors.

Ending 35 Years of Unfulfilled Hopes

The Saemangeum Development and Investment Agency sees Hyundai Motor Group's investment as pivotal for determining Saemangeum’s future and is focusing all efforts on its success. Although the Saemangeum project began in November 1991, it faced several setbacks, including failed private sector bids and the injection of massive public funds. Of the total development area of 37.6㎢, only 15.1㎢—about 40%—has been successfully reclaimed. In last year’s work report, President Lee Jaemyung referred to the Saemangeum project as “30 years of unfulfilled hopes” and called for an adjustment of the basic plan.

10 days ago, Saemangeum Smart Waterfront City in Gunsan, Jeonbuk. This place will feature spaces to demonstrate physical AI as well as residential and commercial facilities for the workers residing there. Photo by Lee Jieun

Administrator Mun Seong-Yo of the Saemangeum Development and Investment Agency stated, "We aim not only to attract investments from companies but also to create an environment where they can operate their businesses. We will support the industrial foundation so that companies can invest more quickly and settle stably in Saemangeum."

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