Hyundai Motor Group has signed a memorandum of understanding (MoU) with the South Korean government and Jeonbuk State to invest Won9tn ($6.3bn) in Saemangeum industrial and energy projects.
The planned investment will create an industrial innovation base covering robotics, artificial intelligence (AI), hydrogen energy and solar power, alongside development of an AI-enabled smart city.
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Hyundai said the Saemangeum site in Gunsan City was selected for its access to renewable energy and integrated transport links spanning rail, port and airport.
Hyundai Motor Group vice chair Jaehoon Chang said: “What we are building in Saemangeum will reshape not just a region, but Korea’s industrial future.
“Hyundai Motor Group brings together the manufacturing excellence, AI capabilities, and hydrogen energy expertise needed to establish a truly advanced industrial ecosystem. This is how we translate our commitment to ‘Progress for Humanity’ into reality.”
The largest share of funding – Won5.8tn – will go towards an AI data centre.
It is designed to process large-scale datasets for applications including autonomous driving, robotics, software-defined vehicles and smart factories.
The facility is expected to be deployed in phases with graphics processing unit (GPU) capacity of up to 50,000 units.
Hyundai also plans to allocate Won400bn to establish a robotics manufacturing cluster with annual capacity of about 30,000 robot units, including foundry and component supply capabilities.
Clean energy investments include Won1tn for a 200MW-class polymer electrolyte membrane (PEM) electrolyser plant to produce hydrogen using renewable electricity.
Another Won1.3tn will be allocated to solar power infrastructure to supply energy to the complex.
A further Won400bn is earmarked for an AI hydrogen smart city integrating AI, robotics and hydrogen technologies.
Construction of the AI data centre, solar installations and PEM plant is scheduled to start in 2027, with completion and initial operations targeted for 2029.
The robotics manufacturing cluster is expected to be built between 2028 and 2029.
Hyundai said it is in discussions with financing partners, including the Korea Development Bank, to structure project funding.
The Saemangeum development forms part of Hyundai Motor Group’s previously announced plan to invest Won125.2tn in South Korea between 2026 and 2030.
The company said the Saemangeum investment is expected to generate about Won16tn in economic impact and create roughly 71,000 jobs across direct, indirect and induced employment in South Korea.
Hyundai added that the hub will support deployment of “physical AI” across mobility, logistics and urban systems and help expand domestic hydrogen production capacity in South Korea towards a total of 1GW.
