“We need to shift from ‘planning Sae-man-geum’ to ‘executing Sae-man-geum’ and from ‘potential Sae-man-geum’ to ‘achieving Sae-man-geum’,” said Moon Sung-yo, head of the Sae-man-geum Development Agency, in an interview with Aju Economy. Since taking office in May as the eighth head of the agency, he has emphasized ‘speed, innovation, and communication’ as core values. Four months into his tenure, his priorities remain unchanged.
After decades focused on planning and infrastructure development, it is now time to demonstrate results through actual corporate investments, factory operations, and job creation.
The first step is a change in the development approach. The Sae-man-geum Development Agency is currently working on a revision of its basic plan to shift from a private investment-centered development model to a public-led approach. The plan involves the Sae-man-geum Development Corporation directly engaging in development, with a goal of reclaiming and supplying a total of 169.6 square kilometers of industrial and urban land by 2035.
Moon stated, “Even if companies decide to invest, it is difficult to proceed with actual projects if the necessary land, roads, water, and power infrastructure are not provided on time. It is crucial to proactively prepare what companies need.”
In particular, the agency plans to significantly increase the supply of industrial land. Currently, 12.1 square kilometers of industrial land has been developed, with an additional 25.4 square kilometers planned, bringing the total to 37.5 square kilometers. This initiative aims to secure necessary land in advance to prevent a shortage from hindering corporate attraction. However, the current revision of the basic plan is still in the process of being reviewed by the Sae-man-geum Committee, with a target for discussion in October.
The industrial landscape of Sae-man-geum is expanding beyond secondary batteries to include AI, robotics, hydrogen, and renewable energy. A key turning point is Hyundai Motor Group's investment of approximately 9 trillion won. The group plans to gradually develop facilities related to AI data centers, robotics, electrolysis plants, solar power, and an AI hydrogen city in Sae-man-geum.
Moon described Hyundai's investment as “a symbolic case recognizing the potential of Sae-man-geum, as a global anchor company executes a large-scale investment.”
The next challenge is not just attracting a single company but also bringing in related partner companies. The Sae-man-geum Agency is also pursuing the establishment of shared logistics facilities for robotics component manufacturers.
Moon emphasized, “The goal is not just to build one factory for an anchor company. We aim to create an industrial ecosystem where AI and robotics operate in the field, supported by renewable energy and green hydrogen.”
The AI data center by Hyundai Motor Group is expected to receive construction approval by the end of this year, with a goal to begin construction in March next year. Following that, the plan is to gradually expand the data center in line with medium- to long-term demand and promote co-investment from companies related to robotics, AI, and hydrogen.
The ultimate vision for Sae-man-geum is to develop an ‘AI industrial city’ that goes beyond just an industrial complex.
Moon stated, “AI is not just a technology for a specific industry; it is a foundational technology that enhances competitiveness across all sectors, including manufacturing, robotics, energy, and logistics. I want to see autonomous vehicles and delivery robots moving around the city, with AI managing traffic, security, and energy in Sae-man-geum.”
Abundant renewable energy is also a key component of Sae-man-geum's industrial strategy. The agency plans to expand the scale of renewable energy supply from the current 7 GW to 10 GW through the revision of the basic plan. The first phase of the industrial complex and the third industrial complex will be developed as RE100 pilot complexes, with a long-term goal of expanding this to the entire Sae-man-geum industrial complex.
A system to support everything from renewable energy production to supply and certification is also being established. The agency is working on launching a consultative body involving relevant organizations such as Korea Electric Power Corporation, Korea Western Power, the Energy Agency, and the Industrial Bank by the end of this year.
Moon noted, “The ability to respond to RE100 is becoming increasingly important in the supply chains of global companies. The fact that Sae-man-geum can provide stable and competitively priced renewable energy will be a significant advantage in attracting businesses.”
However, simply bringing in companies is not enough to complete Sae-man-geum. For companies and workers to settle, it is essential to have ports, railways, as well as educational, medical, and cultural facilities.
The new Sae-man-geum port is pushing for the priority opening of two berths by the end of this year, while the rail connection from Dae-ya Station to the new Sae-man-geum port is targeted for completion in 2033. The waterfront city is also planning to establish living infrastructure, including a complex community center, and is in discussions with relevant agencies to attract an international school and build a university hospital.
The budget for next year is also focused on attracting actual corporate investments. The proposed government budget for the Sae-man-geum Development Agency for 2027 is 222.2 billion won, a 3.4% increase from this year. Notably, the budget for supporting corporate investments has surged from 4.6 billion won to 26.5 billion won, a 477% increase.
Among this, 17.5 billion won has been allocated for the AI data center and long-term lease land for physical AI. The budget also includes provisions for shared logistics facilities related to robotics manufacturing and demand-responsive transportation services for industrial complex workers.
Moon stated, “When a company decides to invest, the government must secure land and create an environment where partner companies can gather, along with conditions for workers to live. The key to the budget is to ensure that investment agreements lead to actual construction and operation.”
Sae-man-geum has seen ongoing debates over its development direction and pace across successive governments. Moon believes that this issue must ultimately be resolved through results.
He remarked, “Speed creates results, and results create sustainability. If we can show that companies are investing, factories are operating, and jobs are being created, Sae-man-geum can become a national growth hub that any government will continue to nurture.”
He added, “During my term, I want to achieve three outcomes: public-led reclamation and development, actual construction of corporate investments, and the establishment of an AI pilot city. I aim to make Sae-man-geum a representative demonstration hub for physical AI in South Korea.”
* This article has been translated by AI.
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