"Let's Leverage Hyundai's Investment"... Jeonbuk State Seeks Sweeping Transformation Toward Future Industries

【Financial News Jeonju—Reporter Kang In】 Jeonbuk State is moving to foster advanced industries of the future, using Hyundai Motor Group's investment in Saemangeum as a catalyst. The initiative will focus on three key sectors: physical AI and robotics, clean hydrogen, and AI data centers.
The plan is to spread the effects of the anchor company's investment beyond Saemangeum and promote industrial transformation and shared growth across the province's 14 cities and counties.
According to Jeonbuk State on the 28th, Hyundai Motor Group's investment in Saemangeum totals KRW 8.9 trillion and covers a site measuring 340,000 pyeong. Of that amount, KRW 5.8 trillion will be invested in a 100-megawatt-class AI data center, while KRW 1.3 trillion will go toward renewable energy to supply power to the data center and electrolysis facilities. A 200-megawatt-class electrolysis plant, built at a cost of KRW 1 trillion, will produce 18 tons of clean hydrogen per day. The plan also includes an AI hydrogen city and a manufacturing plant for logistics and delivery robots with an annual capacity of 15,000 units.
Jeonbuk State expects the investment to generate KRW 16 trillion in production-inducing effects and create 71,000 jobs, based on Hyundai Motor Group's estimates.
The province plans to use the robot manufacturing plant as an anchor for building a robotics ecosystem that connects research and development with demonstration, certification, and mass production of components. Jeonbuk produces 97% of South Korea's medium- and large-sized commercial vehicles and has concentrated agricultural and construction machinery industries, giving it favorable conditions for applying physical AI to real-world machinery. However, developing a system to link local companies' design and control capabilities and research achievements to mass production remains a challenge.
In the hydrogen sector, Jeonbuk State will establish a green hydrogen innovation valley linking production, storage, and utilization. Demonstrations of electrolysis in Buan County will accelerate the localization of related technologies, while the province will support permitting and identify local sources of green hydrogen demand so that the Saemangeum electrolysis plant can be built on schedule. Wanju-gun will be designated as a specialized complex for hydrogen-powered commercial mobility to connect the value chain. The province also plans to seek government support, including the introduction of production subsidies for green hydrogen and the construction of a wide-area hydrogen pipeline network, while expanding its hydrogen infrastructure.
AI data centers are critical national infrastructure that require power, sites, and telecommunications networks to be available simultaneously. Jeonbuk State views expandable sites, renewable energy capable of supporting RE100, and an international submarine fiber-optic cable landing station scheduled for completion in 2027 as key strengths. Because existing location regulations and permitting procedures are geared toward manufacturing, the province plans to have Saemangeum designated as an AI data center special zone, secure support for power, sites, and taxes, and process permits through a fast track. It will also foster an AI ecosystem of supply and demand companies so that businesses and research institutions in the province can use GPUs and data.
The effects of the investment will not remain confined to Saemangeum. Gunsan, Gimje, and Buan County will serve as industrial hubs leveraging sites, ports, and renewable energy. Jeonju, Iksan, Wanju-gun, and Jeongeup will form the central axis of manufacturing innovation, leading the AI and robotics transformation of automotive and machinery parts. The eastern region will be connected as a demonstration hub applying robotics and AI to agriculture and life sciences, forestry, tourism, and everyday services. Jeonbuk State plans to identify candidate projects for each city and county, package them by region, and link them to national projects and competitive government programs.
A Jeonbuk State official said, "We will make Saemangeum an investment hub while creating a Jeonbuk one-team industrial ecosystem in which the 14 cities and counties share responsibility for supply chains, talent, demonstrations, and settlement based on their respective strengths," adding, "The province will oversee anchor investments, institutional improvements, and securing national funds, while the cities and counties prepare the foundations for businesses, talent, demand, and settlement."
[email protected] Kang In Reporter