The Saemangeum reclamation project, which began in 1991, was named with hopes of prosperity, combining the fertile lands of the Mangyeong Plain and the Gimje Plain. Ultimately, the project created new land equivalent to two-thirds of Seoul's area, but numerous development initiatives, including tourism and renewable energy, have largely failed.
Now, Saemangeum is once again positioned as a testing ground for South Korea's future industries, this time focusing on physical artificial intelligence (AI). The government and industry are working to develop Saemangeum into a global physical AI hub that integrates AI data centers, robotics, and future mobility industries, with Hyundai Motor Group playing a key role.
The government's commitment is significantly stronger than in the past. A government-wide task force led by Prime Minister Kim Min-seok has reportedly resolved or initiated the process for around 50 of the 60 regulations that previously hindered the establishment of an AI city, exceeding 80% of the total. Remaining regulations are expected to be addressed within the year, and policy financing support, such as through the National Growth Fund, is also being considered.
However, the history of Saemangeum development is marked by painful memories. Major plans for an international business district, tourism complex, free economic zone, and renewable energy cluster have mostly ended in disappointment, with development directions shifting with each change in administration.
Nonetheless, the current AI hub project is generating optimism in line with global industrial trends. The AI industry is entering an era of physical AI that drives the real world, encompassing robotics, autonomous vehicles, smart factories, and future mobility. Hyundai Motor Group is also nurturing robotics and software-defined vehicles (SDVs) and autonomous driving technology as future growth engines.
Recently, NVIDIA CEO Jensen Huang expressed significant interest in South Korea's manufacturing and robotics sectors, highlighting that the future of the AI industry cannot rely solely on semiconductor chips. For AI to operate in real-world environments, a foundation in manufacturing, robotics technology, and a mobility ecosystem is essential. This is why South Korea, with its world-class manufacturing competitiveness, is viewed as a key hub in the physical AI era.
The core of the Saemangeum project is to consolidate AI data centers, manufacturing, and robotics industries in one location, aiming to create a base for the demonstration and commercialization of physical AI.
A critical factor for success is power supply. The operation of massive AI models and data centers requires substantial electricity. This is why countries like the United States and those in the Middle East are competing to attract data centers, as they offer stable power supply capabilities.
South Korea possesses the necessary infrastructure, including nuclear power, transmission networks, energy storage systems (ESS), and data center construction capabilities. A package export model combining AI data centers with power infrastructure is also feasible.
The Saemangeum project is crucial for Hyundai Motor Group as it aligns with the company's strategy to transform from an automotive manufacturer to a mobility and robotics enterprise. To secure leadership in the physical AI era, establishing a large-scale demonstration space and industrial ecosystem is essential.
The remaining challenge is execution. Numerous plans and visions related to Saemangeum have been announced, but results have been minimal. The development history of Saemangeum is approaching 40 years. This initiative is not merely a regional development project; it is a national project aimed at creating a new growth engine for South Korea following semiconductors. There is hope that the renewed opportunity in Saemangeum will be proven by tangible results.
* This article has been translated by AI.
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