Can Hyundai Motor Group end the tragic history of development failures in Saemangeum? As the company embarks on a project to establish a physical AI hub in the Saemangeum area of North Jeolla Province, there is growing interest in whether this initiative can provide new momentum for a development effort that has languished for decades.
According to industry sources, the Saemangeum development project began in November 1991 with the construction of the world's longest seawall (33.9 km) to create a total of 409 square kilometers of land for industrial, tourism, and agricultural purposes. Now in its 35th year, the project has faced numerous setbacks due to political, environmental, and historical conflicts. To date, the government has invested 17 trillion won, but only 41.8% of the planned area has been reclaimed, leading to its reputation as a 'graveyard of development.'
The biggest challenge in the Saemangeum development is the unclear identity of the city. Initially, the goal was to secure farmland to improve food self-sufficiency. However, as demand for agricultural land declined, the focus shifted in the 2000s toward developing a tourism and leisure-oriented city.
Attempts to attract significant Chinese investment to draw international tourists faltered after the 2017 THAAD incident, which soured relations between South Korea and China. The 2023 World Scout Jamboree also left a mark on Saemangeum, branding it as a city lacking international infrastructure and contributing to its ambiguous identity as neither an agricultural nor a tourist city.
Industry experts believe that Hyundai's project could serve as a turning point for Saemangeum's development. Unlike previous efforts that were heavily influenced by agriculture and tourism, this investment focuses on future industries. The area's abundant renewable energy resources, such as the Gunsan wind farm, and the availability of large industrial sites are seen as significant advantages.
Saemangeum's status as one of the few large-scale sites in South Korea also adds to its competitiveness. Hyundai can secure industrial land at relatively lower costs compared to the metropolitan area. Various incentives offered by the Saemangeum Development Agency and North Jeolla Province are also considered strong advantages.
Hwang Ji-wook, a professor of urban engineering at Jeonbuk National University, stated, "As Hyundai pursues future projects targeting the global market, the ability to secure large sites and receive various support makes Saemangeum highly competitive. I hope that, from a long-term perspective, an energy industry ecosystem can be established alongside improvements in living conditions."
* This article has been translated by AI.
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