Ulsan, South Korea's industrial capital, is moving to transform itself from a heavy and chemical industry-centered national model into a digital advanced city powered by artificial intelligence (AI). The Ulsan Free Economic Zone Authority (UFEZA) said Monday that it will fully review its existing three core strategic industry framework centered on automobiles, shipbuilding, and petrochemicals, and begin restructuring it into a four-strategic-industry framework centered on AI.
The centerpiece of this overhaul is the establishment of a new "AI application industry group." The new industrial map envisioned by UFEZA will be reorganized into eco-friendly mobility, advanced chemical new materials, clean energy, and AI application industries.
What stands out is the focus on substantive "digital convergence." The newly included sectors — software development, data processing, system integration, and engineering and R&D — are expected to maximize synergy by layering AI intelligence on top of Ulsan's solid manufacturing base.
Behind Ulsan's swift move is an urgent demand for change from the industrial sector. As the global industrial paradigm has recently been reshaped around decarbonization and digital convergence, structural improvement has become a survival requirement for Ulsan. The very high level of private-sector demand for an "AI and Energy Port District" seen during the recent review of additional designation candidate sites proves companies' strong willingness to invest.
Challenges remain, however, including securing highly specialized personnel and spreading AI adoption to small and medium-sized enterprises. To address these, UFEZA is preparing to cultivate talent through industry-academia-research cooperation. Through the "Industrial AI Master's Program" at UNIST's Novatus Graduate School, the authority aims to nurture customized AI talent equipped with practical skills, easing recruitment difficulties and accelerating digital transformation.
UFEZA plans to wrap up industry opinion gathering and surveys in May, and submit an application to revise its core strategic industries after prior consultation with the Ministry of Trade, Industry and Energy (MOTIE).
"This overhaul is not simply about adding a few industries," UFEZA Commissioner Lee Kyung-sik said. "It is fundamental structural improvement work aimed at accelerating the smart transition of Ulsan's key industries and building competitiveness in the global market."
