Namyangju Attracts Kakao's AI-Based 'Digital Hub' Investment
60 Billion Won Invested... Laying the Foundation for a 92,000 m² AI Industry
Generating 467.7 Billion Won in Added Value... Creating 2,596 Jobs
Aiming to Establish a New Growth Model for Joint Development of Business and Community
Namyangju City in Gyeonggi Province (Mayor Joo Gwangdeok) signed a memorandum of understanding (MOU) on the 13th at Gyeonggi Provincial Government with Kakao, Gyeonggi Province, and Korea Land and Housing Corporation (LH) to invest in and attract the construction of Kakao's 'Digital Hub' within the Wangsuk Advanced Industrial Complex.
Namyangju Mayor Joo Gwangdeok is signing a memorandum of understanding (MOU) on the 13th at Gyeonggi Provincial Government with Gyeonggi Governor Kim Dongyeon and others, along with Kakao, Gyeonggi Province, and Korea Land and Housing Corporation (LH), to invest in and attract the construction of Kakao's 'Digital Hub' within the Wangsuk Advanced Industrial Complex. Provided by Namyangju City
This agreement marks the second case of investment attraction within the Wangsuk Advanced Industrial Complex. It was achieved as Kakao's demand for investment, particularly in the AI industry?including the recent unveiling of its proprietary AI model 'Kanana'?aligned with Namyangju City's vision and direction to attract advanced industries such as AI, fabless, and cloud. Namyangju City and Kakao began initial discussions on investment attraction in September 2023, and after full-scale negotiations starting in September last year, they reportedly reached a final investment agreement this year.
At the agreement ceremony, Namyangju Mayor Joo Gwangdeok, Kakao CEO Chung Shina, Gyeonggi Governor Kim Dongyeon, and LH President Lee Hanjun signed the agreement outlining each institution's cooperation measures and pledged to work together for the successful establishment of the Digital Hub.
The agreement includes the following: administrative support from Namyangju City and Gyeonggi Province; timely development and provision of site environment and infrastructure by LH; and the timely construction of the Kakao Digital Hub, along with regional win-win and social contribution activities by Kakao. The participants agreed to cooperate until the completion of the Kakao Digital Hub.
Accordingly, approximately 600 billion won will be invested in land acquisition and construction for the Digital Hub, which will have a total floor area of about 92,000 square meters. Additional investments in various facility equipment, including servers, are also planned to be expanded in stages.
After completing the necessary permits and approvals in the first half of next year, construction will begin in the second half, with completion targeted for 2029. Once completed, about 150 Kakao executives and employees will work at the facility.
Namyangju City expects that this large-scale investment attraction will generate approximately 467.7 billion won in added value and create about 2,596 jobs, providing a significant boost to the local economy.
In addition, the city anticipates that various regional win-win and social contribution activities by Kakao?such as strengthening communication with local residents, fostering startups, and promoting support policies for small business owners?will help establish a new growth model where companies and the local community grow together.
Mayor Joo Gwangdeok emphasized, "I believe today's agreement marks a meaningful occasion that signals the grand beginning of a major transformation in Namyangju's industrial ecosystem. In response to Kakao's bold investment decision, we will reciprocate with exceptional administrative support and do our utmost to achieve a level of cooperation that goes beyond mere collaboration."
Kakao CEO Chung Shina stated, "In the era of AI popularization, Kakao's goal is to enable all citizens to easily and conveniently use AI services in their daily lives. The Kakao 'Digital Hub' will be established as a key infrastructure for AI popularization, and we will continue to cooperate for the development and mutual growth of the Namyangju region."
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