Donghae Mayor Lee Jeong-hak said Tuesday that a company setting up in the city cannot be called a success if it fails to create good jobs for residents, and that rising tourist numbers mean little if the local economy does not benefit.
Lee made the remarks at a press briefing held at City Hall, adding that he would ensure "changes in industry and economic growth translate into real changes in people's lives."
The comments came ahead of the ground-breaking for GS Group's AI data center project, estimated to draw between 30 trillion and 120 trillion won ($22 billion to $82 billion) in investment. They were widely read as a call for Donghae, GS Group, Gangwon Province and global technology companies to work together — alongside both public and private partners at home and abroad — to improve the lives of Gangwon residents and expand the city. The remarks also carried a note of caution against unchecked optimism.
"If a massive building goes up but stays disconnected from the local economy, that is not the kind of data center we are hoping for," Lee said. "We will provide the administrative support businesses need, but we must start preparing now to ensure Donghae sees real benefits."
The city plans to actively pursue ways to extend the project's reach into a broader AI industry ecosystem — attracting related businesses, encouraging participation by local companies and nurturing local talent — alongside the administrative support needed for the data center's construction.
However, as the project is still in its early stages, specific details on operations, end users, employment scale and plans to attract related businesses will be confirmed and discussed with the company and relevant agencies as the project takes shape.
The city will first assess baseline conditions covering power supply, water, permits, industrial complexes and infrastructure, while also pursuing business attraction and local partnership measures to maximize the project's economic ripple effects.
"What matters is making the AI data center not just a facility that happens to be in Donghae, but an industry that transforms Donghae's economy," Lee said. "We will not be swayed by blind optimism or vague anxiety — we will find the path that benefits Donghae and its residents the most."
Assessing the city's current situation, Lee said Donghae faces the realities of population decline, youth outmigration and struggling local commerce, while at the same time confronting new opportunities in the AI data center, Donghae Port, rail development and tourism. "We must not pursue each project in isolation," he said. "We need to connect them and transform the entire economic structure of Donghae."
Under the city's ninth elected-term administration, Donghae plans to pursue what it calls a "great economic transformation" linking AI and future industries with port and rail development and tourism, concentrating policy efforts on channeling the gains from business attraction and the tourism sector into jobs, income and neighborhood commerce for residents.
abc@heraldcorp.com
