Accelerating Development of 'Solarcido' in Haenam, Jeonnam
Aiming to Become an Energy Self-Sufficient City
BS Group announced on the 22nd, "The corporate city 'Solarcido,' currently under development in Haenam, Jeonnam, is emerging as an optimal location for AI data centers based on renewable energy," adding, "It is urgent to expand the application of the regulatory sandbox in order to attract more investment."
Solarcido is a public-private partnership urban development project jointly developed by BS Group, which includes BS Hanyang and BS Industry, along with Jeonnam Province and Haenam County. The project aims to build a future-oriented city integrating industrial, residential, and leisure functions on a site of approximately 20.9 million square meters (6.32 million pyeong). While promoting the creation of an energy self-sufficient city, the project is also accelerating the development of residential infrastructure such as international schools and hotels.
This area boasts abundant annual solar radiation and wind speeds, and a total renewable energy generation infrastructure of 10GW is planned within a 15km radius. With the development of the Yeongsangang reclamation solar power cluster (3GW) and the Southwest offshore wind power project (7GW) underway, the region is evaluated as being capable of providing a stable power supply required for RE100-based high-tech industries such as AI data centers.
BS Group has already signed business agreements with TGK, Samsung C&T, and LG CNS to build a hyperscale data center. In June last year, the Solarcido data center site was designated as a government Opportunity Development Zone, securing various tax benefits. Favorable conditions for attracting companies have been established, including reductions in corporate tax, income tax, acquisition tax, and property tax.
Jeonnam Province and Korea Electric Power Corporation also agreed last October to accelerate the construction of a 154kV-class substation. Solarcido is also seeking designation as a 'Distributed Energy Special Zone' by Jeonnam Province in the first half of this year. Once designated, it is expected to attract attention as the nation's first microgrid-based energy self-sufficient city model.
Infrastructure to improve residential conditions is also being established. In February of this year, BS Group signed a business agreement with Redlands Christian School (RCS), a prestigious private school in the United States, to promote the establishment of an international school. A delegation from the school is scheduled to visit at the end of this month to conduct a site survey.
A management contract for a luxury hotel has also been signed with Hotel Shilla. In addition, plans are in place to expand medical infrastructure by establishing a general hospital and a residential healthcare complex.
A BS Group representative stated, "Solarcido has attracted significant interest from domestic and international high-tech companies due to its abundant renewable energy based on its exceptional natural environment and large-scale land available for immediate development," adding, "To complete the city as a self-sufficient urban model equipped not only with an industrial cluster but also with residential, educational, and medical infrastructure, it is essential to expand the application of the regulatory sandbox for investing and resident companies and institutions."
Foreign investors continue to cite uncertain domestic regulations as a major entry barrier. The industry is calling for the expansion of regulatory exemptions for new industries, simplification of licensing procedures, and enhancement of tax support to secure global competitiveness in the fields of AI and eco-friendly energy.
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