Fostering New Industries in AI Distributed Power Grids
National AI Computing Center Included
Development of Phases 1 and 2 of Private Launch Site Promoted
Jeonnam Province has secured a total of 161.4 billion won in government funding for AI and space industry initiatives in the 2026 national budget, including fostering new industries in AI distributed power grids and establishing a National AI Computing Center.
This achievement is seen as the result of Jeonnam Province’s years-long efforts to implement its “AI Hub Jeonnam Strategy” and “Private-Led Space Industry Development Vision.” It is a meaningful outcome, as it reflects the allocation of large-scale national funds.
Jeonnam Province has laid the groundwork for major projects by successfully attracting the National AI Computing Center and building partnerships with domestic and international data companies and AI-related organizations. As a result, a variety of core AI-related projects have been included in the 2026 national budget.
The main projects are as follows: ▲ Establishment of the National AI Computing Center (11.8 billion won, with a total project cost of 2.5 trillion won); ▲ Fostering new industries in AI distributed power grids (119.6 billion won, with a total project cost of 1.02 trillion won); ▲ Construction of the Daebul Industrial Complex AX Demonstration Collaboration Platform (2 billion won, with a total project cost of 22 billion won); ▲ Establishment of the Steel & Metal Industry AI Transformation (AX) Support Center (2.8 billion won, with a total project cost of 22 billion won); and ▲ Construction of the Yeosu National Industrial Complex AX Demonstration Complex (2 billion won, with a total project cost of 20.5 billion won).
These projects are expected to play a pivotal role in advancing Jeonnam’s industrial structure and establishing an ecosystem for AI-based manufacturing innovation and the data industry.
Jeonnam Province has also secured significant funding for space industry projects, laying the foundation to become a key hub in the global space sector.
The main projects include: ▲ Construction of a private space launch vehicle engine combustion test facility (2 billion won, with a total project cost of 48.5 billion won); ▲ Construction of defense launch support facilities (650 million won, with a total project cost of 41.7 billion won); ▲ Development of phases 1 and 2 of a private launch site (11.2 billion won, with a total project cost of 170.5 billion won); and ▲ Establishment of a Launch Vehicle Technology Commercialization Center (2.7 billion won, with a total project cost of 27.4 billion won).
These projects are expected to serve as a bridgehead for advancing the domestic space industry ecosystem by expanding Jeonnam’s space industry infrastructure and encouraging private sector participation.
Building on the success of securing national funding for 2026, Jeonnam Province plans to continue close cooperation with relevant ministries such as the Ministry of Trade, Industry and Energy, the Ministry of Science and ICT, and the Ministry of Climate and Energy to actively identify new high-tech projects and make every effort to secure government funding for 2027.
Kim Gihong, Director of Strategic Industries for Jeonnam Province, stated, “With this government funding, we have established a solid foundation to rapidly advance the AI and space industries,” adding, “We will do our utmost to help Jeonnam emerge as the AI and energy capital of Korea.”
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