"AI Capital Ulsan Moves Forward Unwaveringly"... Focus on Building AI Demonstration Hub

Published 23 Oct.2025 09:18(KST)

Only one consortium ultimately submitted an application for the National Artificial Intelligence (AI) Computing Center construction project, which closed on the 21st. It has been revealed that the private company that had been in discussions with Ulsan City did not participate.

However, Ulsan City announced that it plans to use this opportunity to further solidify its position as a hub for AI-based infrastructure specialized in local industries and as the "AI capital."

Ulsan City explained that, although it had engaged in close consultations with private companies prior to this call for proposals, no companies participated due to difficulties in forming a consortium and concerns about the project's profitability.

Nevertheless, Ulsan City is focusing on building an industry-centered AI demonstration ecosystem and will establish a practical roadmap and accelerate industrial transformation moving forward.

As the largest manufacturing city in South Korea, Ulsan is concentrating on creating an industry-centered AI demonstration ecosystem, leveraging the vast on-site data from its core industries-shipbuilding, automotive, chemical, and non-ferrous metals-as well as stable power infrastructure, including nuclear power, LNG, hydrogen, and offshore wind, and an advanced research base.

In particular, with SK Telecom and Amazon Web Services (AWS) breaking ground on a 7 trillion won AI data center in Ulsan this past June, the city has secured the nation’s first ultra-large AI infrastructure through public-private collaboration.

This project is regarded as the largest private sector-led AI initiative in the country and is being evaluated as a new public-private partnership governance model, with local governments and companies sharing roles.

Going forward, Ulsan City plans to accelerate its transformation into an industrial AI hub by working with relevant ministries such as the Ministry of Science and ICT and the Ministry of Trade, Industry and Energy to expand manufacturing AI infrastructure in line with the government's "AI Highway" strategy, increase the use of private data centers, foster AI professionals, and support companies in adopting AI.

In addition, the city is expediting the creation of the "Ulsan-style Sovereign AI Cluster (2027-2033)," which was announced at the U-NEXT AI Forum launched in September.

This project will focus on key tasks such as AI demonstration and dissemination in manufacturing sites, strengthening the AI capabilities of local companies, nurturing talent throughout the entire cycle, and linking with AI data centers. The specific project model is expected to be finalized in the first half of next year.

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A city official stated, "Non-participation in the national project was simply a business decision by private companies and does not affect Ulsan City's vision," adding, "By strengthening an industry-centered AI strategy in collaboration with the private sector, we will set a new standard for South Korea’s AI industry."