Investment Agreement Signed with Central Government and North Jeolla Province
Phased KRW 9 Trillion Investment Begins This Year
New Jobs Created and Balanced Regional Development
AI Data Center and Robotics Cluster
Gigawatt-Scale S
Hyundai Motor Group is set to establish a future-oriented industrial ecosystem focused on robotics, artificial intelligence (AI), and hydrogen in Saemangeum, North Jeolla Province. With an investment of 9 trillion won, the group plans to build a data center and a robotics manufacturing cluster, accelerating its transformation into a "future technology company." The initiative is expected to generate more than 70,000 new jobs.
Vision for a 'Future Technology Company Centered on Robotics, AI, and Energy Solutions' Takes Shape
On February 27, Hyundai Motor Group announced that it had signed a memorandum of understanding (MOU) with the government and North Jeolla Province at the Gunsan Saemangeum Convention Center to foster advanced industries in robotics and hydrogen and build an AI hydrogen city in Saemangeum.
Beginning in 2026, Hyundai Motor Group will invest 9 trillion won in a 1,124,000-square-meter site (approximately 340,000 pyeong) in Saemangeum. The investment will focus on robotics, AI, hydrogen energy, solar power generation, and the AI hydrogen city, securing new growth engines and aiming to invigorate the national economy by driving innovation in domestic robotics and AI industries, transforming the hydrogen ecosystem, promoting balanced regional development, and creating jobs.
Saemangeum is expanding its transportation infrastructure with railways, ports, and an airport. It offers a 409-square-kilometer area (about 120 million pyeong), two-thirds the size of Seoul, which can accommodate large-scale development projects. Previously, in May 2025, Hyundai Motor Group signed a business agreement with the Saemangeum Development Authority for the introduction of future mobility technologies and the construction of an AI-based smart city.
The MOU signing ceremony was attended by President Lee Jaemyung, Deputy Prime Minister and Minister of Science and ICT Bae Kyunghun, Minister of Trade, Industry and Energy Kim Jeonggwan, and other key officials. From Hyundai Motor Group, Chairman Chung Euisun, Vice Chairman Jang Jaehun, President of Corporate Planning and Coordination Seo Kanghyun, and President of Strategic Planning Sung Kim, among other executives and employees, were present.
President Lee Jaemyung emphasized that the government would fully support this investment, ensuring it becomes a prime example of companies expanding into regional areas. He also shared a vision for Saemangeum to transform into a future city where robots support residents in daily life and industrial settings.
Through this MOU, the government and North Jeolla Province will provide administrative support such as permits and approvals for Hyundai Motor Group’s innovation hub in Saemangeum, develop policies and infrastructure for robotics, AI, and hydrogen energy industries, and establish a mutual cooperation network to facilitate smooth project execution. All relevant ministries and local governments are committed to the success of this initiative.
Jang Jaehun, Vice Chairman of Hyundai Motor Group, stated, "The next-generation industrial paradigm launching in Saemangeum will become a central driver of transformation, not only for North Jeolla but for Korea's future as a whole. Leveraging our manufacturing expertise and capabilities in robotics, AI, and hydrogen energy, Hyundai Motor Group is ready to build an advanced industrial ecosystem."
9 Trillion Won Investment... Advancing as a Future Technology Company Transforming Human Life
With this investment in Saemangeum as a growth innovation hub, Hyundai Motor Group is accelerating its vision to become a "future technology company centered on robotics, AI, and energy solutions" that fundamentally transforms human life. The group’s investment in Saemangeum focuses on establishing an advanced value chain, including: an AI data center, a robotics manufacturing and parts cluster, a water electrolysis plant, solar power generation, and the AI hydrogen city.
First, Hyundai Motor Group will build an "AI Data Center" (5.8 trillion won), considered a core enabler for advanced future technologies such as autonomous driving and robotics-otherwise known as physical AI. The AI data center will gradually be equipped with 50,000 GPUs for super-scale computing power, processing and storing vast amounts of data required for software-defined vehicle (SDV) development and smart factory implementation.
The group will also establish a "Robotics Manufacturing and Parts Cluster" (400 billion won), expanding its world-class manufacturing capabilities into customized robotics solutions. The robotics manufacturing plant, with an annual capacity of 30,000 units, will introduce Hyundai Motor Group’s manufacturing solutions and smart logistics based on AGVs (Automated Guided Vehicles) and AMRs (Autonomous Mobile Robots). This will encourage small and medium-sized automotive parts suppliers to enter the robotics industry, reduce external dependence for key components such as motors and sensors, and strengthen the global competitiveness of Korea’s robotics sector.
To lay the groundwork for a future clean energy industry, Hyundai Motor Group will build a 200MW "Water Electrolysis Plant" (1 trillion won) to produce clean hydrogen using abundant local renewable energy. The project will also develop supply infrastructure such as hydrogen charging stations near the plant. The clean hydrogen produced will serve as a key energy source for trams, buses, and demand-responsive transport (DRT) services, among other mobility solutions.
Additionally, the group will carry out a gigawatt-scale "Solar Power Generation" business (1.3 trillion won), using Saemangeum's abundant sunlight to provide reliable electricity for various applications. Since 2021, Hyundai Motor Group has participated in the operation of a 99MW solar power facility in the first land solar zone in Saemangeum. Leveraging its proven project execution capabilities, the group plans to gradually secure a gigawatt-scale solar power portfolio by 2035, making it a primary energy source for the AI data center and water electrolysis plant.
Hyundai Motor Group will also build the "AI Hydrogen City" (400 billion won), where its AI, robotics, and hydrogen energy technologies will be organically integrated to form a complete industrial ecosystem. The AI hydrogen city will be realized within the 6.6-square-kilometer (about 2 million pyeong) Saemangeum smart waterfront city, where the government is currently building infrastructure. The city will adopt a "local production for local consumption" energy circulation system, using hydrogen produced at the nearby water electrolysis plant. It is expected to become a standard model for next-generation, zero-emission AI cities. Hyundai Motor Group plans to actively apply its experience from the Saemangeum city-scale demonstration to AI city projects worldwide.
Of Hyundai Motor Group's innovation hubs in Saemangeum, the AI data center and solar power generation facility are scheduled to break ground in 2027 and be completed by 2029. The water electrolysis plant will also begin construction in 2029, with phased capacity expansion planned after the first phase is completed. The robotics manufacturing and parts cluster will begin construction in 2028 and be completed in 2029. Discussions with the Korea Development Bank and the National Growth Fund are also underway.
Creation of Over 70,000 New Jobs... Boosting National Economic Vitality
This investment is a core project within Hyundai Motor Group’s long-term domestic investment plan of 125.2 trillion won announced last year.
By establishing a new growth innovation hub in Saemangeum, which offers abundant renewable energy as well as supportive policies and infrastructure, the group aims to enhance its competitiveness in the advanced value chain of robotics, AI, and hydrogen energy technologies and solidify its position as a leader in human-centered physical AI.
The economic impact of this investment is estimated at approximately 16 trillion won, based on input-output tables from the Bank of Korea and related industries, and it is expected to create about 71,000 direct and indirect jobs.
As the investment ramps up, an advanced industrial ecosystem centered on robotics, AI, and hydrogen energy will be established in Saemangeum, laying the foundation for sustainable regional growth. Furthermore, by strengthening industry-academia cooperation, the influx of outstanding talent is expected to help build long-term innovation capabilities throughout the Southwest Coast region.
A Hyundai Motor Group official stated, "Based on Hyundai Motor Group’s world-class manufacturing and innovation capabilities, we will help Korea seize leadership in future industries."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.


