Hyundai Motor’s Saemangeum Investment... Jeonbuk’s Major Shift to Physical AI, Hydrogen, and AI Data Industries

Building an Industrial Ecosystem from Robotics to Components, Research, and Demonstration
Localization of Water Electrolysis Technology, Support for Electricity, Site Selection, and Tax Benefits

With Hyundai Motor Group’s massive investment in Saemangeum, Jeonbuk Special Self-Governing Province has unveiled a vision to restructure the region’s industrial landscape around robotics, clean hydrogen, and AI data industries.

Physical AI Industry Promotion Strategy and Future Vision of Jeonbuk Special Self-Governing Province. Provided by Jeonbuk Provincial Government

According to Jeonbuk Special Self-Governing Province on September 26, Hyundai Motor Group plans to invest 8.9 trillion won in Saemangeum, utilizing a site spanning 340,000 pyeong. Key projects include a 100MW-class AI data center, a 200MW-class water electrolysis plant, a logistics and delivery robot manufacturing plant with an annual production capacity of 15,000 units, and an AI hydrogen city.

An investment of 5.8 trillion won will be allocated to the AI data center, while the establishment of renewable energy infrastructure required for the data center and water electrolysis facilities will receive 1.3 trillion won. The water electrolysis plant, with a 1 trillion won investment, targets the production of 18 tons of clean hydrogen per day.

If Hyundai Motor Group’s investment proceeds as planned, Jeonbuk estimates an economic effect of 16 trillion won in induced production and the creation of 71,000 jobs. These projections were presented by Hyundai Motor Group.

Jeonbuk especially aims to leverage Hyundai Motor Group’s robot manufacturing plant as a catalyst to expand the region’s robotics industry.

Jeonbuk is already home to major domestic bases for medium and large commercial vehicle production, as well as clusters of agricultural and construction machinery companies. The province believes that integrating "Physical AI" technology—enabling artificial intelligence to physically operate machines and robots—can also drive transformation in existing industries such as the automotive, agricultural machinery, and construction machinery sectors. To this end, Jeonbuk plans to establish the Korea Physical AI Promotion Institute (tentative name), develop demonstration centers for commercial vehicles, agriculture, robotics, specialty vehicles, and construction machinery, create the K-Robot Demonstration Sharing Center, and operate a joint campus between Jeonbuk National University and Hyundai Motor Group.

Jeonbuk will focus on establishing a structure for producing hydrogen in Saemangeum and connecting it to consumers within the province.

The province plans to support the localization of water electrolysis technology through the Buan water electrolysis demonstration project, secure permits for the construction of the Saemangeum water electrolysis plant, and identify hydrogen consumers. In Wanju, a specialized hydrogen commercial mobility cluster will be established, connecting the entire value chain from hydrogen production and storage to transportation and vehicle utilization.

Additionally, Jeonbuk intends to propose the introduction of green hydrogen production subsidies and the establishment of a regional hydrogen pipeline network to the central government, while gradually expanding the province’s hydrogen refueling, production, and utilization infrastructure.

Jeonbuk further plans to use Saemangeum’s vast area and renewable energy resources to establish a data center infrastructure that meets RE100 requirements and to expand its data industry base by connecting with the international submarine cable landing station scheduled for completion in 2027.

However, the current rules governing industrial complex locations and the permitting process for data centers remain challenges to be resolved. The province aims to designate Saemangeum as a special zone for AI data centers, secure support for electricity, site location, and tax benefits, and build an institutional framework to expedite related permitting procedures.

There are also plans to foster both providers and users of AI technology—supporting local businesses and research institutes to utilize high-performance GPUs and data. Jeonbuk’s vision goes beyond simply attracting large-scale manufacturing facilities to Saemangeum; it is fundamentally about transforming the manufacturing ecosystem of existing industrial centers through Hyundai Motor Group’s investment.

Gunsan, Gimje, and Buan will be developed as industrial hubs utilizing Saemangeum’s land, ports, and renewable energy, while Jeonju, Iksan, Wanju, and Jeongeup will be fostered as manufacturing innovation centers supporting the AI and robotics transformation of the automotive and machinery parts industries. The eastern region will be linked as a demonstration area applying robotics and AI technologies to bio-agriculture, forestry, tourism, and daily service industries.

Yang Sunhwa, Director of the Future Advanced Industry Bureau of Jeonbuk Province, said, “We will use Saemangeum as an investment hub and build an industrial ecosystem in which all 14 cities and counties leverage their individual strengths, sharing roles in the supply chain, human resources, demonstration projects, and residential settlement. The province will lead the way in promoting corporate investments, institutional reforms, and securing national funding, while city and county governments, together with businesses, will be supported to secure the necessary workforce, demand, and residential infrastructure.”

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