Hyundai Motor Group pushes ahead with W9tr Saemangeum AI Valley project

Democratic Party field briefing at Saemangeum on Thursday

5.8 trillion won earmarked for AI data center

Five major projects underway, including robotics and hydrogen

Solar power SPC established in September

Dedicated team formed; group joins government TF

Curriculum partnerships with Jeonbuk National University and vocational high schools

Hyundai Motor Group Vice Chairman Jang Jae-hoon presents investment plans at a national briefing on advanced industry development in the Yeongnam region, held in Jinju, South Gyeongsang Province, on July 3, under the chairmanship of President Lee Jae Myung. [Cheong Wa Dae press pool]

Hyundai Motor Group is accelerating preparations for its 9 trillion won ($6.74 billion) Saemangeum AI Valley project in North Jeolla Province. The group established a special purpose company (SPC) for a solar power generation business in September, has since set up a dedicated project team, and is now discussing plans to cultivate local talent. The moves mark the implementation phase following the announcement of the large-scale investment plan in February.

Vice Chairman Jang Jae-hoon attended a field briefing Thursday at the Saemangeum Energy Convergence Complex General Support Center in North Jeolla Province, organized by the Democratic Party of Korea's Special Committee on Mega Growth, where Jang outlined the progress of the Saemangeum AI Valley project. The session also covered the policy support and challenges needed to advance the project.

Democratic Party leader Kim Min-seok attended the briefing, along with the committee's senior vice chair Lee Gwang-jae and standing vice chair Kwon Chil-seung. Officials from related agencies were also present, including North Jeolla Province Governor Lee Won-taek, Saemangeum Development Authority chief Moon Seong-yo, National Science and Technology Advisory Council Vice Chair Lee Gyeong-su, and Gunsan Mayor Kim Jae-jun. From Hyundai Motor Group, Jang and Hyundai Engineering & Construction CEO Lee Han-woo attended.

The Special Committee on Mega Growth is a Democratic Party panel launched in late August to address policy support for large-scale industrial projects — including semiconductors, AI data centers and physical AI — as well as balanced regional development.

Kim Min-seok, then prime minister, speaks with Hyundai Motor Group Vice Chairman Jang Jae-hoon at the kickoff meeting of the Saemangeum and North Jeolla Grand Innovation Task Force, held at Government Complex Seoul in Jongno-gu on the morning of March 11. [Lim Se-jun]

"Since announcing the 9 trillion won investment in Saemangeum, Hyundai Motor Group has been carrying out its planned projects without delay," Jang said. "We will develop Saemangeum into a future industrial hub for South Korea where renewable energy, AI data centers, robotics and hydrogen industries grow together."

Jang added that "if the attention and support of the government and the National Assembly are forthcoming, more companies will bring their investments to Saemangeum, leading to new jobs and the formation of an industrial ecosystem — and ultimately to outcomes that strengthen South Korea's future industrial competitiveness."

The Saemangeum AI Valley centers on an AI data center linked to robot manufacturing facilities, hydrogen production plants and renewable energy generation infrastructure. Rather than operating each facility in isolation, the concept is to concentrate AI computing capacity, energy production and manufacturing technology within a single region.

Hyundai Motor Group announced in February a plan to invest about 9 trillion won in a 1.12 million-square-meter site at Saemangeum in North Jeolla Province. The largest share of the investment — 5.8 trillion won, or more than 60 percent of the total — is allocated to the AI data center.

The remaining projects are allocated as follows: 1.3 trillion won for solar power generation facilities, 1 trillion won for a water electrolysis plant, 400 billion won for a robot manufacturing and components cluster, and 400 billion won for an AI hydrogen city.

The AI data center aims to build up computing capacity equivalent to 50,000 GPUs in stages. It will handle data processing for automotive software development, robot learning and smart factory operations. The solar power facilities and water electrolysis plant are designed to establish a foundation for supplying electricity and hydrogen using renewable energy.

Prime Minister Han Seong-sook receives a briefing on the current state of Saemangeum development and future plans at the observation deck of the Saemangeum 33 Center in Gimje, North Jeolla Province, on Wednesday. [Yonhap]

At the time of the announcement, Hyundai Motor Group said it planned to break ground on the AI data center and solar power facilities next year and complete them by 2029, with the robot manufacturing and components cluster set to begin construction in 2028 and be completed in 2029.

Since the investment announcement, the group has established new organizational units to oversee each area of the project and has been refining its execution framework. It is also participating in the government-run Saemangeum and North Jeolla Grand Innovation Task Force, discussing permitting procedures, infrastructure development and institutional support measures.

In September, the group established an SPC to advance the solar power generation business, a key pillar of the project. The move is intended to prepare a power supply foundation ahead of projects expected to generate large-scale energy demand, such as the AI data center and hydrogen production facilities.

Hyundai Motor Group is also pursuing cooperation with local educational institutions. It is in talks with Jeonbuk National University on establishing a contract-based department to train specialists in physical AI. Separately, it is discussing with the North Jeolla Province Office of Education and other bodies how to retool the curricula of Meister high schools and specialized vocational high schools to align with future industries.

Legislative discussions are also under way at the National Assembly to support regional investment. On Monday, the Democratic Party agreed at a briefing with the government to push for the creation of a separate National Assembly special committee to advance legislation on a so-called super-wide special zone law.

kwater@heraldcorp.com