Jeonbuk Province Launches Full-Scale Support System for Hyundai Motor’s 9 Trillion Won Saemangeum Investment

Support System in Motion: Regulatory Exemptions and Up to 100 Billion Won in Investment Subsidies
AI Data Centers, Robotics, and Hydrogen Industry Clustering: Toward a Future Industry Hub
70,000 New Jobs Expected: Building an Advanced Manufacturing and Energy Ecosystem

Jeonbuk Special Autonomous Province has unveiled a comprehensive support plan to back Hyundai Motor Group's large-scale investment in Saemangeum, accelerating the establishment of a hub for AI, robotics, and hydrogen industries.

Kim Jonghun, Deputy Governor for Economic Affairs of Jeonbuk Special Self-Governing Province, announced a comprehensive support plan at a press conference at the provincial office on the 19th, following the establishment of government support plans by the "Saemangeum Jeonbuk Great Innovation Task Force (TF)." The plan includes the activation of a comprehensive support system to create a future advanced industry hub at the provincial level. Photo by Noh Jeonghun

Kim Jonghun, Deputy Governor for Economic Affairs of Jeonbuk Province, announced the province-level comprehensive support plan linked to Hyundai Motor's Saemangeum investment project at a provincial government press conference on the 19th. This plan is structured as a package encompassing administrative, financial, and institutional support, with a focus on proactively addressing potential regulatory and infrastructure issues that may arise during the corporate investment process.

Jeonbuk Province has decided to strengthen financial support to attract businesses. Through amendments to relevant ordinances, the province has established criteria allowing it to provide local investment subsidies of up to 100 billion won for companies that invest more than 1 trillion won or create more than 1,000 new jobs.

The province is also considering additional incentives for the robotics industry. By including it as a regionally specialized sector, companies can receive higher investment subsidies than those provided to general industries. Customized initiatives will also run in parallel, such as supporting the construction costs for AI data centers, establishing rental factories for robotics companies, and building shared logistics warehouses.

The plan also includes supporting the relocation of Hyundai Motor’s partner companies in connection with the Saemangeum Enterprise Growth Center and building an ecosystem for the robotics and mobility industries.

Comprehensive support will extend from talent development to transportation networks. Jeonbuk Province is focusing not only on strengthening the industrial base but also on improving human resources and living conditions.

The province is promoting the designation of specialized Meister high schools for AI and robotics and plans to support Gunsan National University’s application for the AI Innovation Graduate School (AX Graduate School) project. In addition, specialized university development programs for training professionals in robotics, AI, and hydrogen will be expanded.

Transportation infrastructure will also be enhanced. Efforts include building railway and road networks to improve accessibility to Saemangeum, introducing demand-responsive transportation (DRT) systems, and considering support for dormitory rent for employees of partner companies.

Jeonbuk Province expects that, upon completion of Hyundai Motor’s investment, there will be an economic impact of approximately 16 trillion won and the creation of around 70,000 jobs. While previous development strategies for Saemangeum focused on agriculture, bio, and renewable energy, this project is distinguished by its model of a futuristic industrial city that combines AI, robotics, and hydrogen industries.

Kim Jonghun, Deputy Governor for Economic Affairs of Jeonbuk Province, said, “Hyundai Motor’s investment in Saemangeum will serve as a turning point for transforming Jeonbuk’s industrial structure toward the future. In cooperation with the government, we will create an environment where companies can invest with confidence and will develop Saemangeum into a global hub for the AI, robotics, and hydrogen industries.”

Previously, in February, Hyundai Motor Group signed an investment memorandum of understanding (MOU) with government ministries, Jeonbuk Province, and the Saemangeum Development and Investment Agency. The group announced plans to build an AI data center, a robotics manufacturing cluster, a water electrolysis plant, a solar power complex, and an AI-based hydrogen city on approximately 1,124,000 square meters in the Saemangeum area.

Hyundai Motor Group’s total investment amounts to 8.9 trillion won. By sector, this includes: 5.8 trillion won for the AI data center, 1.3 trillion won for renewable energy generation, 1 trillion won for the water electrolysis plant, 400 billion won for the robotics manufacturing plant, and 400 billion won for the AI-based hydrogen pilot city.

In particular, the 100MW-class AI data center is expected to serve as a physical AI research infrastructure. The project will also include an annual green hydrogen production facility with a capacity of 30,000 tons and a logistics and delivery robot manufacturing plant capable of producing 15,000 units per year.

Jeonbuk Province is promoting the third revision of the “Special Act on the Establishment of Jeonbuk Special Autonomous Province and the Creation of a Global Bio-Economy City” in connection with Hyundai Motor’s investment.

The amendment bill includes 43 provisions such as: designation of hydrogen production promotion zones, establishment of AI convergence complexes, special provisions for data centers, autonomous mobility demonstration, and the creation of specialized clusters for future vehicle components.

The province expects that deregulation directly linked to investment sites—such as simplifying certification procedures for water electrolysis plants, designating special demonstration zones for robotics, and establishing data center clusters—will accelerate corporate investment. In addition, the province will sequentially promote the designation of Opportunity Development Zones, RE100 industrial complexes, distributed energy specialized zones, and the Saemangeum Mega Zone.

If designated as an RE100 industrial complex, companies will be eligible for corporate and income tax reductions. Designation as a distributed energy specialized zone will allow for direct trading and direct sales of renewable energy. If designated as an Opportunity Development Zone, companies will benefit from reduced development charges and receive priority support for worker housing.

This content was produced with the assistance of AI translation services.