The landscape of South Korea's advanced industries is changing. As semiconductor and AI clusters concentrated in the metropolitan area face limitations in power and water supply, Solar City in Haenam is emerging as a breakthrough solution. Recently, Samsung Electronics announced a 17 trillion won investment for a national AI data center, positioning Solar City as a key hub for South Korea's leap into the global AI G3 arena.
Solar City's main competitive advantage lies in its comprehensive availability of essential resources: power, water, and large land areas. On July 7, Aju Business Daily conducted a written interview with Hwang Jun-ho, CEO of South West Coast City Development, to discuss Solar City's unique location, future vision, and prerequisites for successful project implementation.
Solar City's main competitive advantage lies in its comprehensive availability of essential resources: power, water, and large land areas. On July 7, Aju Business Daily conducted a written interview with Hwang Jun-ho, CEO of South West Coast City Development, to discuss Solar City's unique location, future vision, and prerequisites for successful project implementation.
Solar City: The Key Destination for 425 Trillion Won Investments from Samsung and SK
At the 'Southwest Advanced Industry Development Vision National Report Meeting' held on June 30, Samsung Electronics and SK Hynix announced a record investment plan of 425 trillion won in the Gwangju and Jeonnam regions. Of this, 17 trillion won will be allocated to the construction of the national AI data center in Solar City. With the groundbreaking of the Samsung SDS consortium's 'National AI Computing Center' scheduled for next month, Solar City is set to become the 'National AI Hub' of South Korea.
Hwang Jun-ho attributed the success in attracting this investment to the 'prepared infrastructure' and 'sustainability.' He stated, "As global tech giants face challenges of power shortages and carbon neutrality (RE100), the feasibility of Solar City, which can directly supply large-scale renewable energy locally, has proven effective."
He added, "With the plan for a data center park (DCP) that will house 1GW-level data centers becoming visible, this will not only enhance the maintenance and management efficiency of AI data centers (AIDC) but also serve as a model for ecosystem creation. The influx of substantial construction labor, along with IT engineers and data scientists, will transform the Jeonnam-Gwangju integrated special city into a center for high-value knowledge industries."
Hwang Jun-ho attributed the success in attracting this investment to the 'prepared infrastructure' and 'sustainability.' He stated, "As global tech giants face challenges of power shortages and carbon neutrality (RE100), the feasibility of Solar City, which can directly supply large-scale renewable energy locally, has proven effective."
He added, "With the plan for a data center park (DCP) that will house 1GW-level data centers becoming visible, this will not only enhance the maintenance and management efficiency of AI data centers (AIDC) but also serve as a model for ecosystem creation. The influx of substantial construction labor, along with IT engineers and data scientists, will transform the Jeonnam-Gwangju integrated special city into a center for high-value knowledge industries."
"From RE100 to 1 Million Tons of Water... Unmatched Competitive Advantage"
While competition among local governments to attract data centers and semiconductor fabs is fierce, Solar City's competitiveness is unparalleled. In contrast to other regions, including the metropolitan area, where projects are delayed due to issues with power transmission networks, water shortages, and complaints, Solar City stands out.
Hwang summarized Solar City's locational strengths into four key points. First, there is 4 million pyeong (approximately 13.2 million square meters) of immediately available land. Land compensation has been completed, and prior approvals have been secured, allowing for swift project advancement. Second, there is 'abundant renewable energy.' Following the launch of a 98MW solar power plant in 2019, there are plans to produce a total of 5.4GW of renewable energy by 2030 to supply directly to industrial facilities.
The third advantage is 'sufficient water supply.' Utilizing the resources from Yeongam Lake and Geumho Lake, Solar City can reliably supply over 1 million tons of water daily throughout the year. Finally, the living conditions are comparable to those in the metropolitan area. Hwang emphasized, "We are developing a complex energy new town that encompasses not just industrial zones but also residential, commercial, international schools, and general hospitals. Once the smart city project, set to be completed this year, is fully operational, it will exemplify a model of a future city."
Hwang summarized Solar City's locational strengths into four key points. First, there is 4 million pyeong (approximately 13.2 million square meters) of immediately available land. Land compensation has been completed, and prior approvals have been secured, allowing for swift project advancement. Second, there is 'abundant renewable energy.' Following the launch of a 98MW solar power plant in 2019, there are plans to produce a total of 5.4GW of renewable energy by 2030 to supply directly to industrial facilities.
The third advantage is 'sufficient water supply.' Utilizing the resources from Yeongam Lake and Geumho Lake, Solar City can reliably supply over 1 million tons of water daily throughout the year. Finally, the living conditions are comparable to those in the metropolitan area. Hwang emphasized, "We are developing a complex energy new town that encompasses not just industrial zones but also residential, commercial, international schools, and general hospitals. Once the smart city project, set to be completed this year, is fully operational, it will exemplify a model of a future city."
Flexible Grid for Stable Power Supply... "We Need to Establish a Local Production and Consumption System"
The Achilles' heel of advanced industries is 'stable power supply.' Given the 24/7 operation of data centers, relying solely on renewable energy does not guarantee perfect power quality. Samsung Electronics Vice Chairman Jeong Young-hyun has also raised the need for expanding nuclear power and LNG generation to secure base load power.
In response, Hwang stated, "We are seeking solutions based on eco-friendly energy while utilizing a diversified energy mix and a flexible grid system enabled by the special law for promoting distributed energy." He envisions complementing the variability of renewable energy through the establishment of large-scale battery energy storage systems (BESS) and AI-based energy management systems (AI EMS), while also integrating base load power from small modular reactors (SMR) or LNG generation with the local power grid.
The key issue is institutional support. To establish a 'local production and consumption' structure that utilizes produced renewable energy without waste, the passage of the 'Special Law on the Creation and Support of Renewable Energy Self-Sufficient Cities,' currently pending in the National Assembly, is crucial. Hwang urged, "The enactment of this special law is essential for building a legal framework for power purchase agreements (PPA) that allow for the direct production of renewable energy nearby and its affordable supply to advanced companies."
In response, Hwang stated, "We are seeking solutions based on eco-friendly energy while utilizing a diversified energy mix and a flexible grid system enabled by the special law for promoting distributed energy." He envisions complementing the variability of renewable energy through the establishment of large-scale battery energy storage systems (BESS) and AI-based energy management systems (AI EMS), while also integrating base load power from small modular reactors (SMR) or LNG generation with the local power grid.
The key issue is institutional support. To establish a 'local production and consumption' structure that utilizes produced renewable energy without waste, the passage of the 'Special Law on the Creation and Support of Renewable Energy Self-Sufficient Cities,' currently pending in the National Assembly, is crucial. Hwang urged, "The enactment of this special law is essential for building a legal framework for power purchase agreements (PPA) that allow for the direct production of renewable energy nearby and its affordable supply to advanced companies."
Blueprint for Attracting 'Next-Generation Semiconductor Fabs'... Breaking the One-Center System of the Metropolitan Area
Solar City's vision extends beyond data centers to the completion of a 'global advanced manufacturing and energy convergence belt.' To overcome the limitations of data centers, which create relatively fewer jobs, attracting large-scale employment-generating industries such as semiconductor clusters is essential for achieving true regional balanced development.
Hwang expressed confidence, stating, "Solar City has secured over 900,000 pyeong (approximately 2.97 million square meters) of land for power-intensive advanced industries. In a situation where investments in the metropolitan area are becoming difficult due to power and water limitations, Solar City is the optimal location for accommodating 'next-generation semiconductor fabs.'" He also outlined a vision to establish an ecosystem encompassing research and development to manufacturing of future power semiconductors like gallium nitride (GaN) and next-generation energy storage systems (ESS).
To achieve this, bold incentives to attract top talent are necessary. Hwang suggested, "Tax benefits such as income tax reductions for employees and regulatory easing for establishing prestigious educational institutions should be packaged as 'life care exceptions.'"
Additionally, he mentioned the need to expand regional transportation networks, such as the early completion of the Gwangju-Wando Expressway, to overcome geographical limitations and to enhance a 'community participation profit-sharing model' where local residents can participate as shareholders in the development process, ensuring that the benefits of development circulate back to the community.
Hwang expressed confidence, stating, "Solar City has secured over 900,000 pyeong (approximately 2.97 million square meters) of land for power-intensive advanced industries. In a situation where investments in the metropolitan area are becoming difficult due to power and water limitations, Solar City is the optimal location for accommodating 'next-generation semiconductor fabs.'" He also outlined a vision to establish an ecosystem encompassing research and development to manufacturing of future power semiconductors like gallium nitride (GaN) and next-generation energy storage systems (ESS).
To achieve this, bold incentives to attract top talent are necessary. Hwang suggested, "Tax benefits such as income tax reductions for employees and regulatory easing for establishing prestigious educational institutions should be packaged as 'life care exceptions.'"
Additionally, he mentioned the need to expand regional transportation networks, such as the early completion of the Gwangju-Wando Expressway, to overcome geographical limitations and to enhance a 'community participation profit-sharing model' where local residents can participate as shareholders in the development process, ensuring that the benefits of development circulate back to the community.
* This article has been translated by AI.
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