Gwangyang City Signs Investment Agreement Worth 750 Billion KRW

by Heo Seonsik

Published 21 Aug.2023 18:18(KST)

Updated 15 Aug.2025 10:22(KST)

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Cloud Data Center

Hwanggeumsandan 7,019㎡ 40MW Scale, Creating 210 Jobs

Gwangyang City in Jeollanam-do is accelerating the cultivation of future new industries by attracting the ‘Jeonnam Gwangyang Cloud Data Center’ to the Hwanggeum Industrial Complex.

On the 21st, the city announced that it signed an investment agreement (MOU) worth 750 billion KRW with Jeollanam-do, Gwangyang Bay Area Free Economic Zone Authority, Jeonnam Cloud Data Center Co., Ltd., KT, Microsoft Korea Co., Ltd., and Gwangyang GI Co., Ltd. at the Seo Jae-pil Room of Jeollanam-do Provincial Office.

[Photo by Gwangyang City]

The signing ceremony was attended by Kim Young-rok, Governor of Jeollanam-do; Jeong In-hwa, Mayor of Gwangyang; Song Sang-rak, Head of Gwangyang Bay Area Free Economic Zone Authority; Hong Ki-beom, CEO of Jeonnam Cloud Data Center Co., Ltd.; Ryu Pyeong, Head of KT Jeonnam-Jeonbuk Corporate Customer Headquarters; Lee Sang-hyun, Executive Director of Microsoft Korea Co., Ltd.; and Kim Seon-duk, CEO of Gwangyang GI Co., Ltd.

According to the agreement, Jeonnam Cloud Data Center Co., Ltd. will build and operate the Jeonnam Gwangyang Cloud Data Center on a 7,019㎡ site in Block A of the Hwanggeum Industrial Complex, and will strive to secure future tenants and hire about 200 new employees. Construction is scheduled to begin this year and be completed by the end of 2025, with KT and Microsoft Korea Co., Ltd. participating in design, facility construction, and overall operation.

Gwangyang City, Jeollanam-do, and the Gwangyang Bay Area Free Economic Zone Authority will actively provide administrative support to ensure smooth progress of the data center construction and plan to foster data industries such as artificial intelligence, big data, and 5G as future new growth engines of Jeonnam.

The establishment of the data center is expected to greatly contribute to revitalizing the local economy by attracting related industries such as IT and software companies, creating new jobs, attracting young populations, and increasing local tax revenues.

Hong Ki-beom, CEO of Jeonnam Cloud Data Center Co., Ltd., stated, “We will work hard to successfully build and operate the data center in cooperation with our affiliates,” adding, “Through the construction and smooth operation of the data center, we will strive together with the local community to help Gwangyang grow into a hub for future food industries.”

Jeong In-hwa, Mayor of Gwangyang, said, “The establishment of a cloud data center in response to the global digital era transition is not just a simple data processing infrastructure but will have ripple effects across IT infrastructure and the regional economy and society as a new growth engine for Jeonnam,” and added, “We will strengthen support for companies to ensure the data center’s successful settlement so that Gwangyang can become the center of Jeonnam’s data industry.”

Meanwhile, cloud data centers are essential infrastructure in the big data era, managing large volumes of data through advanced technologies such as cloud computing, big data, and the Internet of Things (IoT).

The government is introducing incentives such as facility charge discounts and partial exemption of standby power fees for power grid connections to data centers located outside the metropolitan area to alleviate the concentration of data centers in the metropolitan area and supports smooth regional site establishment.