The South Korean government will provide concentrated support for Hyundai Motor Group's investment plan to transform Saemangeum into a hub for the hydrogen ecosystem, a future energy source. The government will improve regulations on installing "water electrolysis plants" that produce hydrogen, and will also provide subsidies for hydrogen train purchases and clean hydrogen fuel. It also plans to accelerate the establishment of systems for building wide-area distribution networks, including hydrogen pipelines.
The government held the "Saemangeum-Jeonbuk Grand Innovation Task Force (TF) Meeting," chaired by Prime Minister Kim Min-seok, in Saemangeum, North Jeolla Province on Wednesday, where it unveiled the comprehensive government support plan. Hyundai Motor Group had previously announced a Saemangeum investment plan worth 9 trillion won across five core areas: hydrogen infrastructure, artificial intelligence (AI) robots, AI data centers, solar power, and AI-hydrogen city construction. The government's blueprint is intended to back this investment from a balanced national development perspective.
Above all, the government will work to build the related infrastructure so that Saemangeum can develop an industrial ecosystem that produces and supplies clean hydrogen energy. To this end, it plans to simultaneously pursue fast-track permit processing and expedited environmental impact assessment consultations to support the construction of large-scale water electrolysis facilities. It will also provide Hyundai Motor Group with subsidies for purchasing hydrogen mobility, including hydrogen trains, as well as hydrogen fuel subsidies. The government will establish systems for building wide-area hydrogen distribution infrastructure such as hydrogen pipelines, while also reviewing plans to designate Saemangeum as a hydrogen specialized complex.
The government also presented a full industrial cycle support plan to transform Saemangeum into Korea's leading AI robot manufacturing and parts cluster. Led by the Ministry of Trade, Industry and Energy (MOTIE), it will operate a national robot industry control tower and support research and development (R&D) for the localization of core robot components. It will also establish design standards for facilities such as buildings and roads to support robot demonstration testing. In addition, it plans to designate a comprehensive bonded area to boost robot industry imports and exports and to expand related investment subsidies from North Jeolla Province.
To build the "Saemangeum AI Data Center," the government plans to establish a tax credit system for data center investments and review related local investment subsidy support. To support Hyundai Motor Group's Saemangeum solar power project, it will also consider providing land for onshore solar power generation.
To create the foundation for investment, the government plans to pursue designation of the Hyundai Motor Group investment zone in Saemangeum as an "Opportunity Development Special Zone," and will prepare incentives such as the introduction of regional electricity tariff systems and reductions in water and sewage fees. It is also reviewing plans to designate AI Meister High Schools or operate specialized universities to cultivate skilled professionals. In addition, it will examine measures to improve living conditions, including building railways and roads in Saemangeum, establishing medical and educational facilities, and providing special housing supply.
The government will review comprehensive financial support measures, including the use of the National Growth Fund for investment, loans, and infrastructure financing, depending on the project's progress stage. It also plans to pursue the participation of overseas sovereign wealth funds, including reviewing investment eligibility through the Korea Development Bank and then requesting the UAE to consider investment proposals.
"Through cooperation between the government and businesses, Saemangeum will be reborn as a forward base for advanced industries and a strategic hub for moving toward the future," Prime Minister Kim said.
