The South Korean government plans to accelerate the completion of the Saemangeum development project from 2050 to 2035, advancing the timeline by 15 years. The new strategy shifts from a private investment model to a public-led approach, where the government will first develop land expected to attract corporate demand.
The area designated for the Saemangeum industrial complex will expand significantly from 12.1 square kilometers to 37.5 square kilometers. The industrial hubs, previously concentrated in one area, will be reorganized into four sectors focusing on robotics and artificial intelligence (AI), advanced machinery, hydrogen, and RE100 industries. Hyundai Motor Group's planned investment of 9 trillion won will be incorporated into the new master plan, with construction of an AI data center expected to begin as early as March next year.
On August 20, the Saemangeum Development Agency unveiled the revised master plan, emphasizing the need to concentrate public investment in areas with actual demand to expedite the development process.
The current master plan aims to reclaim a total of 240.5 square kilometers by 2050. The revised plan adjusts this to prioritize the reclamation of 169.6 square kilometers by 2035, with public institutions like the Saemangeum Development Corporation leading the development efforts.
Additionally, a strategic reserve area of 12.2 square kilometers will be set aside for future corporate investments without predetermined uses, bringing the total reclamation target to 181.8 square kilometers.
Areas with deep water that would incur high reclamation costs or are limited by airport noise will not be reclaimed. Instead, some of these areas will be converted into energy sites for renewable energy production.
The Saemangeum Development Agency plans to focus on developing land in high-demand areas over the next decade, supplying the necessary power from nearby energy sites.
The industrial zones will see a substantial increase, with the current 12.1 square kilometers expanding by an additional 25.4 square kilometers to a total of 37.5 square kilometers. The existing industrial hub will be expanded from one to four locations.
The first industrial zone will focus on robotics and AI, linked to Hyundai Motor Group's investment; the second will be dedicated to advanced agricultural machinery; the third will be associated with hydrogen production and renewable energy; and the fourth will serve as a hub for RE100-related industries utilizing surrounding energy sites.
To facilitate the development of the third industrial zone, some existing tourism and leisure land will be converted into industrial land, aiming to create a hydrogen-specialized industrial zone linked to nearby solar and hydrogen facilities.
The capacity for renewable energy generation will also increase from the current 7 gigawatts to 10 gigawatts. The Saemangeum Development Agency is working with Jeollabuk-do to designate the first industrial zone's sections 3, 7, and 8, as well as the third industrial zone in Buan, as RE100 zones, with a long-term goal of establishing all four industrial zones as RE100.
Tax incentives and regulatory exemptions will be strengthened, including corporate tax reductions for investment promotion zones and the expansion of comprehensive bonded zones. The agency is also pursuing the designation of a 'mega special zone' that combines support for new industry pilot projects with infrastructure and policy financing.
Transportation networks will be enhanced to match the expansion of industrial hubs. The north-south axis road is set to begin construction in 2030 following a pre-feasibility study. The new railway connecting to Saemangeum Port is scheduled for completion in 2033, while the Saemangeum International Airport is expected to be finished by 2030, and the new Saemangeum Port by 2040.
The new plan also includes expanding regional rail and express bus rapid transit (BRT) systems to connect Saemangeum with nearby cities such as Gunsan, Gimje, Jeonju, and Iksan. Instead of building all residential, educational, and medical facilities within Saemangeum, the strategy will leverage existing urban functions in surrounding cities.
The new master plan incorporates Hyundai Motor Group's announced investment plan of approximately 9 trillion won for Saemangeum. The group aims to develop an AI data center, a robotics manufacturing cluster, an electrolysis plant, solar power generation, and an AI hydrogen city.
The key facilities, including the robotics manufacturing plant and AI data center, will be located in section 7 of the first industrial zone. Hyundai Motor Group plans to submit a construction review for the AI data center in September, with the Saemangeum Development Agency aiming to finalize building permits by the end of the year. The goal is to begin construction in March 2027.
To facilitate this, the Saemangeum Development Agency will amend the development plan for section 7 of the first industrial zone by September to allow the addition of 'broadcast and communication facilities' to the permitted structures for the data center.
Construction for solar power generation and hydrogen production facilities will begin in phases starting at the end of next year. Agricultural land in section 3 will be converted to energy land to supply sites for land-based solar power, with the renewable energy produced being utilized for hydrogen production facilities.
Hyundai Motor Group is also considering expanding the AI data center beyond the initial plan announced in February. The group is pursuing co-investment opportunities with related companies in Saemangeum and is improving living conditions for employees of Hyundai and its affiliates. Land designated for logistics and support facilities in section 7 of the first industrial zone will be changed to industrial land, while some land for industrial and research facilities in section 9 will be converted to residential land.
The waterfront city will serve as an AI pilot city for testing robotics, autonomous vehicles, hydrogen cars, and demand-responsive transportation systems (DRT). The Saemangeum Development Agency plans to develop this area as a physical AI demonstration hub in collaboration with the Ministry of Land, Infrastructure and Transport.
In environmental efforts, the agency will promote the expansion of drainage sluices to improve water quality in Saemangeum Bay and prevent flooding. This will enhance drainage capacity while increasing seawater circulation, and the installation of tidal power generation facilities linked to the sluices is also under consideration. The basic planning for this initiative will be conducted by April next year.
The Saemangeum Development Agency will begin gathering feedback from local residents and related organizations with a community briefing on August 24, followed by a public hearing in September. The revised master plan will be finalized in October after review by the Saemangeum Committee.
Moon Sung-yo, head of the Saemangeum Development Agency, stated, “We will listen to local opinions on the revised master plan and expedite the reclamation process to deliver tangible results for the public. We will also swiftly provide the necessary support to Hyundai Motor Group and create a foundation for global companies to continue investing in Saemangeum.”
* This article has been translated by AI.
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