Hyundai Motor Group and South Korean authorities formalized a deal to channel roughly 9 trillion won into projects on the country's western coast, the land ministry announced on Friday. The package includes a major AI data centre, a robot production plant and renewable energy investments in the Saemangeum area.
Under the terms reported by the ministry, Hyundai Motor Group will invest about 5.8 trillion won to build an AI data centre that will house 50,000 graphics processing units. The ministry also said the group will spend 400 billion won on a factory intended to produce robots, explicitly including wearable robotic devices.
Energy-related investments are part of the agreement as well. Hyundai Motor Group will dedicate 1 trillion won to hydrogen production facilities and 1.3 trillion won to solar generation projects in the same region, according to the ministry's statement.
Saemangeum, the site selected for these developments, is a large-scale national land reclamation project on South Korea's west coast. The area was created more than 20 years ago initially to secure additional farmland and has since been positioned to attract industrial clusters to a region that had long been viewed as disadvantaged.
The land lies within the Jeolla provinces, a region the ministry noted is a traditional support base for the countrys political liberals, including the Democratic Party of President Lee Jae Myung. The announcement did not elaborate on timelines or operational details beyond the investment amounts and the planned capacities for the AI and robotics facilities.
Key developments
- Hyundai Motor Group to commit about 5.8 trillion won to an AI data centre that will deploy 50,000 GPUs.
- Investment of 400 billion won earmarked for a robot manufacturing factory, including wearable robots.
- Additional allocations include 1 trillion won for hydrogen production facilities and 1.3 trillion won for solar generation projects.
The land ministry presented the figures as part of the agreement announcement but provided no further operational specifics such as project schedules, employment forecasts, or phased spending plans. The statement confined itself to the investment amounts and the intended project types.
Context on the chosen site
Saemangeum is a significant reclamation area that began development more than two decades ago. Initially aimed at expanding farmland, the reclaimed land has since been promoted as a location for industrial clusters to spur growth in a region previously regarded as less advantaged.
Local political dynamics are noted as a factual characteristic of the region: the Jeolla provinces have traditionally been a support base for political liberals and specifically for the Democratic Party associated with President Lee Jae Myung. The ministry's announcement included this point without linking it to any projected impact on the projects.