The Saemangeum development project is shifting from a private investment-driven model to a public-sector-led approach. The project completion date has been moved forward by 15 years—from the original 2050 to 2035—and while the reclamation area is being reduced by roughly 30%, industrial land will expand more than threefold. Administrative procedures are being fast-tracked for Hyundai Motor Group’s AI data center, backed by an investment of approximately ₩9 trillion (approximately $6.5 billion), with a target groundbreaking of next March.

The Saemangeum Development and Investment Agency unveiled the revised Saemangeum master plan containing these changes on the 20th. The revision comes three years after then-Prime Minister Han Duck-soo ordered a full-scale review of the master plan in August 2023, following the debacle of the 25th World Scout Jamboree held at Saemangeum. President Lee Jae-myung also remarked during a briefing from the agency last December: “Let’s acknowledge reality and move quickly on what we can do. We cannot drag this out ambiguously for another 20 to 30 years.”

The core of the revision is a shortened project timeline. The original plan to reclaim 240.5 square kilometers by 2050 has been adjusted to 169.6 square kilometers by 2035. Including 12.2 square kilometers of strategic reserve land whose use can be flexibly determined based on corporate demand, the total reclamation area amounts to 181.8 square kilometers. Industrial land for factories and research facilities has been more than doubled, from the existing 12.1 square kilometers to 37.5 square kilometers.

Reclamation work will be led by public institutions such as the Saemangeum Development Corporation. The corporation currently has a debt-to-equity ratio near zero and is assessed to have favorable conditions for raising capital, including through the issuance of public bonds. Areas where reclamation costs would be excessive due to deep water depths, or where land use is constrained by factors such as airport noise, will not be reclaimed and will instead be converted to energy-use land. The North-South Axis 3 road, a key arterial route, is scheduled to begin construction in 2030 following an ongoing preliminary feasibility study.

Support Measures for Hyundai Motor Group

The revised plan includes specific support measures to back Hyundai Motor Group’s Saemangeum investment. The group has committed to a ₩9 trillion investment package encompassing an AI data center, a robotics cluster, water electrolysis facilities, and solar power generation.

For Section 7 of Industrial Complex 1, where the AI data center and robot manufacturing plant will be located, broadcasting and telecommunications facilities will be added to permitted building uses by next month, and logistics and support land will be converted to industrial land. The company reportedly determined Section 7 to be the optimal location after considering traffic conditions and ground stability. If the company submits its architectural review application next month for the AI data center, procedures will be expedited to enable building permit approval within the year.

A portion of the industrial and research facility land in Section 9 will be converted to residential land so that Hyundai Motor Group and affiliate company personnel can live within Industrial Complex 1. Agricultural land in Section 5 will be converted to energy-use land to secure sites for ground-mounted solar power facilities. Plans are also being pursued to designate the waterfront city as an AI pilot city to develop it as an advanced mobility-centered urban area.

The Saemangeum Development and Investment Agency reported that Hyundai Motor Group is reviewing additional investments considering mid- to long-term demand compared to the plan announced in February of this year, and that the agency is also encouraging co-investment from affiliate companies.

Expanding Advanced Industry Infrastructure

The revised master plan also incorporates new support measures for advanced industries that were absent from the previous version. Tax benefits, including corporate tax and customs duty reductions, will be expanded, and a Mega Special Zone system will be pursued to provide one-stop support for new industry regulatory sandboxes, infrastructure, and policy financing. The Ministry of Trade, Industry and Energy is currently pursuing legislation for the Mega Special Zone.

Renewable energy capacity will expand from the existing 7GW to 10GW. An RE100 industrial complex offering benefits such as reduced corporate tax burdens will also be pursued. The agency is in discussions with North Jeolla Province to designate Sections 3, 7, and 8 of Industrial Complex 1, along with the 3rd Dan Mountain area near Buan, as an RE100 industrial complex, with long-term plans to develop all four Saemangeum industrial complexes as RE100 complexes. Legislation related to the RE100 industrial complex is currently under review in the National Assembly.

To foster the hydrogen industry, a portion of the tourism and leisure land in Industrial Complex 3 will be converted to industrial land and developed as a hydrogen-specialized industrial complex. The vision is to build a hydrogen industry ecosystem in the North Jeolla region by linking with nearby solar-powered hydrogen facilities. The agency explained that electricity and water—essential for nurturing advanced industries—can be sufficiently secured to meet corporate demand. Expansion work on drainage gates for lake water quality improvement and disaster prevention will proceed in parallel.

The Saemangeum Development and Investment Agency will begin collecting input from relevant agencies, citizens, and civic organizations with a resident briefing session on the 24th. A public hearing will be held next month, followed by deliberation by the Saemangeum Committee, with the master plan to be finalized by October.

Moon Seong-yo, Administrator of the Saemangeum Development and Investment Agency, said: “We will listen thoroughly to regional opinions on the master plan revision and pursue reclamation with a sense of urgency to deliver tangible results that the public can feel.” He added: “We will expedite the support needed by Hyundai Motor Group and build a foundation that enables a second and third global company to continue investing in Saemangeum.”