On September 11, the Saemangeum waterfront city site was bustling with construction activity, with heavy machinery and mounds of earth visible where a city for approximately 20,000 residents is planned. From the perspective of the North-South Road connecting Zones 1 to 3, landscaping and pipeline work were underway. Although 250 pine trees planted in 2024 were starting to take root, the area still lacked the appearance of a livable city.
Saemangeum, which has attracted a $9 billion investment plan from Hyundai Motor Group, is preparing to welcome workers and their families. The key challenge is whether the corporate investment will translate into actual residency. Alongside the construction of industrial facilities, establishing housing and essential living infrastructure has become a priority.
According to the Saemangeum Development Agency, the waterfront city will be developed with a total project cost of 1.9985 trillion won over an area of 6.25 square kilometers. The plan aims to accommodate around 20,000 residents, creating a residential hub for employees and their families of the companies that will set up operations there.
Ground investigations are currently being conducted at the site of the planned 1st Industrial Complex, where the AI data center and robotics manufacturing facilities will be located. The first project, the AI data center, is set to begin construction in March 2024.
Expectations surrounding corporate investment have also impacted the local real estate market. An official from a real estate agency in the Wollyeong-ro area of Gunsan reported that inquiries about nearby commercial properties, land, and apartments surged for a couple of months following the announcement of Hyundai's investment plan in February.
The official noted, “At that time, even people were asking about the prices of small agricultural lands in Buan.” However, he added that inquiries have somewhat decreased recently.
The first land sale for the waterfront city has been completed. The Saemangeum Development Corporation announced that it sold 67 plots for single-family homes and 2 plots for neighborhood facilities within 31 days of the public offering last November. While this success occurred before the announcement of Hyundai's investment plan in February, it is difficult to directly link it to the effects of Hyundai's investment.
This month, the corporation plans to offer an additional 45 plots, including 35 for residential use and 10 for mixed-use, and is preparing to sell apartment land starting next year. However, there will inevitably be a time lag before housing facilities are ready to accommodate workers, as construction and occupancy will take time.
Efforts to establish living infrastructure are also ongoing. The corporation signed a memorandum of understanding with the Australian private school Haileybury on September 4, aiming to open an integrated foreign educational institution from kindergarten to high school by 2030. They agreed to collaborate on human and material support and information sharing necessary for establishing the educational institution. Additionally, a partnership was formed with Wonkwang University to provide medical services, although details regarding the hospital's size and construction timeline were not finalized during last month's project briefing.
The alignment of corporate investment schedules with the supply of housing and living facilities will be crucial for successful settlement. If the establishment of living infrastructure is delayed, even with job growth, workers may commute from surrounding cities.
An official from a real estate agency in the Gwanggyeok-myeon area of Kimje acknowledged that inquiries about land and apartment prices around Saemangeum have increased compared to before, but emphasized that the situation has not yet reached a level that would significantly affect transaction prices or volumes, as factories have not yet been built and workers have not yet moved in.
* This article has been translated by AI.
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