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, Jeollanam-do, is emerging as a breakthrough. 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.
Solar City's main competitive advantage lies in its comprehensive availability of essential resources for advanced industries: power, water, and large-scale land. 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 for advanced industries: power, water, and large-scale land. 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 Jeollanam-do regions. Of this, 17 trillion won will be allocated for 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 big tech companies 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 visualization of the data center park (DCP) plan, which will concentrate 1GW-level data centers, we will not only enhance the maintenance and management efficiency of AI data centers (AIDC) but also create a model for ecosystem development. This will lead to a significant influx of construction workers, IT engineers, and data scientists, transforming the Jeollanam-do and 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 big tech companies 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 visualization of the data center park (DCP) plan, which will concentrate 1GW-level data centers, we will not only enhance the maintenance and management efficiency of AI data centers (AIDC) but also create a model for ecosystem development. This will lead to a significant influx of construction workers, IT engineers, and data scientists, transforming the Jeollanam-do and Gwangju integrated special city into a center for high-value knowledge industries."
From RE100 to 1 Million Tons of Water: Unmatched Competitive Edge
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 and water supply, Solar City is ready to move forward.
Hwang summarized Solar City's locational advantages 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 permits are in place, allowing for swift project execution. 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 residential, commercial, international schools, and general hospitals, not just an industrial complex. Once the smart city project, set to be completed this year, is fully operational, it will exemplify a future city."
Hwang summarized Solar City's locational advantages 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 permits are in place, allowing for swift project execution. 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 residential, commercial, international schools, and general hospitals, not just an industrial complex. Once the smart city project, set to be completed this year, is fully operational, it will exemplify a future city."
Flexible Grid for Stable Power Supply: 'Establishing a Local Production and Consumption System' is Essential
A critical issue for 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 Jeon 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 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 and affordable supply of renewable energy to advanced companies in the vicinity."
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 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 and affordable supply of renewable energy to advanced companies in the vicinity."
Blueprint for Attracting 'Next-Generation Semiconductor Fabs': Breaking the One-Polar System of the Metropolitan Area
Solar City's vision extends beyond data centers to completing 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 like 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 energy-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 for establishing an ecosystem that encompasses 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 for employees and regulatory easing for establishing prestigious overseas educational institutions should be packaged as 'life care special measures.'"
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' that allows local residents to 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 energy-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 for establishing an ecosystem that encompasses 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 for employees and regulatory easing for establishing prestigious overseas educational institutions should be packaged as 'life care special measures.'"
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' that allows local residents to 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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