On February 27, 2026, a wave of optimism swept through South Korea’s Jeonbuk Province as President Lee Jae-myung and Hyundai Motor Group Chairman Chung Eui-sun shook hands at the Gunsan Saemangeum Convention Center. The occasion? A landmark investment agreement that promises to transform Saemangeum into one of Asia’s most advanced industrial hubs, with a focus on robotics, artificial intelligence (AI), and hydrogen energy. The numbers alone are staggering: Hyundai Motor Group has committed 9 trillion KRW to the region, marking the largest single corporate investment in Jeonbuk’s history.
The ceremony, attended by around 200 dignitaries, government ministers, and industry leaders, was more than just a photo op. It represented the first step in a sweeping vision for South Korea’s industrial future—a vision that, if realized, could alter the economic landscape of the entire Honam region and set a new global benchmark for smart cities and green energy.
President Lee, in his address, didn’t hold back his enthusiasm. According to Yonhap News, he declared, “Hyundai Motor Group, nurtured by the nation and its people, is embarking on a bold investment in Saemangeum. This will provide a new growth engine for Jeonbuk’s future and South Korea’s tomorrow.” He went on to praise Chairman Chung Eui-sun, remarking, “Chairman Chung Ju-yung would be proud.” The crowd’s applause made it clear: this was a moment of hope and ambition for the region.
The investment is part of Hyundai Motor Group’s broader blueprint, unveiled in November 2025, to pump a record 125.2 trillion KRW into future mobility and core industries by 2030. Of that, 50.5 trillion KRW is earmarked for AI, hydrogen, robotics, and electrification—sectors seen as vital for South Korea’s next chapter. But it’s the 9 trillion KRW allocated specifically for Saemangeum that has captured national attention.
So, what exactly will this investment bring? For starters, Hyundai will develop a sprawling 1,124,000 square meter site into a next-generation complex cluster. The plan includes a massive AI data center, a robot manufacturing hub, a water electrolysis plant for green hydrogen production, and a solar power facility—all interconnected in what’s being called an “AI hydrogen city.”
The centerpiece is a 5.8 trillion KRW AI data center, equipped with an eye-popping 50,000 GPUs. This isn’t just about crunching numbers; it’s about ushering in the era of “Physical AI”—where AI systems learn from real-world data to power autonomous vehicles and humanoid robots. The data center will serve as the brain, processing the torrents of information generated by Hyundai’s smart factories, self-driving cars, and logistics robots. As reported by H2News, “The goal is to secure real-time learning capabilities for AI, accelerating the shift to software-defined vehicles and advanced robotics.”
But brains need energy—and Saemangeum’s got it. With 1.3 trillion KRW going into solar power and 1 trillion KRW into a 200MW water electrolysis plant, the region’s abundant sunshine and wind will be harnessed to produce green hydrogen. This clean energy will not only power the new facilities but also supply nearby industrial complexes, supporting South Korea’s ambitious decarbonization goals. President Lee highlighted this, saying, “The wind and sunlight of Saemangeum will be converted into eco-friendly green hydrogen, which will become the driving force for regional industries.”
Another 400 billion KRW will be invested in a robot manufacturing cluster, capable of producing up to 30,000 units a year. This isn’t just about building robots for Hyundai; it’s about helping traditional auto parts suppliers pivot to making components for the robotics industry, creating what was described as a “co-prosperity cluster.” According to Kyunghyang Shinmun, this model is expected to “serve as a buffer zone for the domestic auto industry’s transition to future industries.”
Perhaps the most ambitious element is the creation of an “AI hydrogen city” within Saemangeum—a pilot project integrating AI, robotics, and hydrogen technologies into daily life. Think of it as a living laboratory, where smart mobility, logistics, and energy systems are tested and refined before being exported to global markets. Hyundai’s vision is to turn the operational know-how gained here into a template for smart cities worldwide.
The impact on the local and national economy could be profound. Hyundai estimates that the project will generate 16 trillion KRW in added value and create 71,000 jobs, both directly and indirectly. Local officials are already celebrating. Jeonbuk Governor Kim Kwan-young called it “a turning point for upgrading the region’s industrial structure,” promising full administrative and financial support to ensure the project’s success. The local assembly welcomed the investment as “a critical inflection point for nurturing Saemangeum as a future industrial hub.”
President Lee made it clear that government support would match the scale of Hyundai’s commitment. “The government will respond to the company’s bold decision with even bolder support,” he said, pledging to “drastically lower regulatory and administrative barriers so that companies can fully realize their potential and grow.” Multiple ministries will be involved: the Ministry of Land, Infrastructure and Transport will improve the transport network, while the Ministry of Science and ICT and the Ministry of Trade, Industry and Energy will drive policies for AI and robotics. The Ministry of Environment will back clean hydrogen production and power supply systems, and the Saemangeum Development Authority will streamline permitting and administrative processes.
Saemangeum’s unique geography plays a crucial role in this vision. With an area roughly 140 times the size of Seoul’s Yeouido district, it boasts robust logistics and transport infrastructure—rail, ports, and an expanding airport network. This makes it an ideal site for large-scale development and a magnet for both domestic and international talent. President Lee predicted, “Talented individuals from home and abroad will flock to Saemangeum and Jeonbuk, and local youth will have the chance to pursue their dreams without leaving for the capital region.”
The political ramifications are not lost on observers. For years, Jeonbuk has been seen as neglected in national development plans, a perception fueled by high-profile projects going to other regions. The scale of Hyundai’s investment is being hailed as a direct response to this “Jeonbuk neglect theory,” potentially reversing decades of underinvestment and reshaping the region’s identity.
Of course, challenges remain. The success of the project hinges on swift regulatory approvals and the government’s ability to deliver on its promises of support. The schedule is ambitious: construction is set to begin in 2027, with full completion targeted for 2029. As Munhwa Ilbo noted, “The key will be speed and regulatory innovation.”
Still, the mood in Jeonbuk is buoyant. Local businesses and residents are hopeful that the investment will spark a broader transformation, bringing high-tech jobs and new opportunities to a region long reliant on traditional manufacturing. As one provincial official put it, “This is the perfect moment for Jeonbuk to shift from a traditional manufacturing base to a center for advanced industries.”
With government, industry, and local communities aligned, Saemangeum stands on the brink of becoming a showcase for South Korea’s future—where innovation, sustainability, and regional revitalization go hand in hand.