GUNSAN, South Korea – In a historic move that signals a paradigm shift for South Korea’s industrial landscape, Hyundai Motor Group (HMG) has announced a massive 9 trillion KRW (approx. $6.7 billion) investment in the Saemangeum reclaimed area. This marks the largest single-corporate investment in the history of Jeonbuk Special Self-Governing Province, positioning the region as a global epicenter for Robotics, Hydrogen, and Physical AI.
On February 27, 2026, a landmark Memorandum of Understanding (MOU) was signed at the Saemangeum Convention Center (GSCO). The ceremony was attended by President Lee Jae-myung, Hyundai Motor Group Executive Chair Euisun Chung, and heads of five key ministries, highlighting the project’s status as a top-tier national priority.
Five Pillars of Innovation
The investment is structured around five interconnected projects scheduled to break ground sequentially starting in 2027:
AI Data Center (5.8 Trillion KRW): The crown jewel of the investment. A 100MW facility equipped with 50,000 GPUs will serve as the brain for "Physical AI"—AI that interacts with the physical world through robotics and autonomous systems.
Green Hydrogen Production (1 Trillion KRW): A 200MW water electrolysis plant will produce 30,000 tons of green hydrogen annually, aiming for a self-sufficient "Produce Local, Consume Local" energy model.
Renewable Energy Development (1.3 Trillion KRW): Dedicated solar and wind farms will provide carbon-free power to the data centers and hydrogen plants, ensuring 100% clean energy operations.
Robotics Manufacturing (400 Billion KRW): A mass-production hub for logistics and delivery robots, with a capacity of 30,000 units per year.
Hydrogen-AI Pilot City (400 Billion KRW): A living lab where hydrogen mobility and AI-driven robotics are integrated into daily urban life.
A New Model of Public-Private Partnership
What sets this agreement apart is the unprecedented "Multi-Ministry Support System." Five government bodies—including the Ministry of Land, Infrastructure and Transport (MOLIT) and the Ministry of Science and ICT (MSIT)—have pledged to bypass bureaucratic hurdles. This includes providing regulatory sandboxes for Physical AI and streamlining administrative processes through the Saemangeum Development and Investment Agency (SDIA).
"This is not just an investment; it is the birth of a new growth engine for the nation," said Governor Kim Kwan-young. "Jeonbuk will prove that regional development led by high-tech industries can redefine a country’s economic future."
Economic and Strategic Impact
Economists estimate the project will generate 16 trillion KRW in economic ripples and create over 71,000 jobs. Beyond the numbers, the synergy between HMG’s existing commercial vehicle plant in Wanju and the new Saemangeum hub is expected to create a "Hydrogen Mobility Cluster" that is unrivaled in Asia.
As the global race for AI supremacy and carbon neutrality intensifies, Hyundai’s bet on Saemangeum represents a strategic fusion of energy security and technological leadership. By leveraging Saemangeum’s vast renewable resources, Hyundai is not only building products but an entire sustainable ecosystem.
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