Hyundai Opens Saemangeum Office as 9 Trillion Won Investment Moves Toward Construction

A March 2027 start for the biggest project

Hyundai Motor Group opened a permanent project office in Gunsan on October 30, 2026, as it prepares to begin construction of a 5.8 trillion won artificial intelligence data center in March 2027. The facility accounts for about 64% of a planned 9 trillion won investment in South Korea's Saemangeum development area, bringing computing, robotics, solar power and hydrogen production into one industrial project.

The Saemangeum Development and Investment Agency completed the data center's architectural review on October 16. It plans to finish the building permit and other approvals by the end of 2026, while processing the agreements needed for the facility to enter the industrial complex. Hyundai is targeting full data center operations in early 2030.

The new office gives the group a permanent local team to work through land, electricity, water and construction issues with public authorities. Those practical arrangements will determine whether the February investment agreement becomes a working industrial site on schedule.

Hyundai Motor, Kia, Hyundai Mobis, Hyundai Engineering & Construction and Hyundai AutoEver have confirmed their participation in the data center investment. Two companies dedicated to the project are scheduled to be established in November, separating construction and infrastructure from the purchase and operation of computing equipment.

Hyundai Motor Group Vice President Shin Seung-kyu described the significance of the office at its opening ceremony:

The office is a symbol of our will to push ahead with the project without wavering.

The first major construction milestone is now less than five months away. Before then, the group and public agencies must complete approvals and coordinate the services needed to build and run the center.

Where the 9 trillion won will go

Hyundai's Saemangeum plan covers 1,124,000 square meters and brings together five investments. The group signed its investment memorandum with the government and Jeonbuk Province on February 27, 2026.

The planned allocation shows how strongly the development is weighted toward computing:

• AI data center: 5.8 trillion won.
• Solar power generation: 1.3 trillion won.
• Water electrolysis plant for hydrogen production: 1 trillion won.
• Robot manufacturing and parts cluster: 400 billion won.
• AI hydrogen city: 400 billion won.

The data center's 5.8 trillion won budget is roughly 64% of the 9 trillion won total. Solar power and hydrogen production together account for another 2.3 trillion won, about 26%. The robot cluster and AI hydrogen city together receive 800 billion won.

For Saemangeum, a large area of reclaimed coastal land in southwestern South Korea, the plan joins industrial production with the computing and energy infrastructure that Hyundai expects those activities to need. Construction will proceed in stages, beginning with the data center.

Two companies will divide the work

Hyundai plans to establish two special purpose companies in November 2026. A special purpose company is a business created for a defined project or activity, allowing its investment, contracts and responsibilities to be managed separately.

One company will build the data center and its supporting infrastructure. The other will acquire graphics processing units, known as GPUs, and provide computing services. GPUs can perform many calculations at once, making them useful for training AI systems on large amounts of data.

Hyundai AutoEver's board approved an investment of 114.608 billion won on October 30 to purchase 1,146,080 shares in the planned GPU services company, tentatively named HMG AI Factory. The purchase will give AutoEver a 26% stake.

The investment equals 6.1% of AutoEver's consolidated equity at the end of the previous year. Payments are scheduled in six installments from 2026 through 2031, spreading the commitment across the construction period and beyond the planned opening.

HMG AI Factory is expected to provide cloud computing and GPU services, allowing users to access computing capacity as a service. It plans to operate from other locations until the Saemangeum facility is ready, giving the business an operating route before the new building opens.

What the computers will do

Hyundai intends the center to support autonomous driving, robotics, manufacturing AI and vehicle research. Its focus is physical AI, meaning artificial intelligence that helps machines perceive their surroundings, make decisions and act in the real world.

For autonomous driving, the center will train and test software around the clock. Hyundai plans to use it for end to end driving algorithms, which learn how to connect information from a vehicle's sensors with driving decisions, rather than relying entirely on separate rules written for each task.

Robot development will use digital twins, virtual representations of environments and equipment. These simulations allow developers to train robot behavior in a computer before applying it to physical machines.

The planned work includes teaching robots to interpret visual information and language, handle tasks in environments that are not neatly arranged, and control their joints precisely. Service robots and mobile robots are among the intended applications.

Computing capacity is therefore central to the wider investment. The robot factories would make physical products, while the data center would provide a place to develop and test the software that helps those products operate.

The construction timetable

Hyundai and the development agency have set out a sequence running from the February agreement through the start of data center services in early 2030. The next scheduled steps are the formation of the two project companies in November and completion of permits by the end of 2026.

• February 27, 2026: Hyundai announces the investment memorandum for Saemangeum.
• September 17, 2026: The first solar power project company is established.
• September 21, 2026: Hyundai submits the data center for architectural review.
• October 16, 2026: The development agency completes that review.
• October 28, 2026: The Saemangeum master plan is revised.
• October 30, 2026: Hyundai opens its local office and AutoEver approves its investment.
• November 2026: Two data center project companies are scheduled to be established.
• March 2027: Data center construction is targeted to begin.
• Late 2027: Solar and hydrogen production facilities are scheduled to begin construction.
• 2028: Construction of the robot cluster is planned to start.
• 2029: Major facilities are targeted for completion.
• Early 2030: Full data center services are targeted to begin.

The timetable places major facility completion in 2029 and the start of full data center services in early 2030. For businesses planning to use the computing capacity, the service opening is the key operating milestone.

A permanent team for land, power and water

The Gunsan office is located at the Automotive Convergence Technology Institute's Tech Biz Plaza, in its Future Mobility Tech Center. Staff will coordinate with Jeonbuk Province, Gunsan City, the Saemangeum Development and Investment Agency and other organizations.

Land, electricity and water have required repeated consultations during preparations. Previously, work involved travel between the Seoul metropolitan area and Saemangeum. A permanent local team allows officials and company staff to discuss problems as they arise at the project location.

The data center is planned as a building with two floors above ground, occupying a site of 150,312 square meters and providing 101,950 square meters of total floor area. Its architectural review is complete, while the building permit and industrial complex entry procedures are being handled together.

Agency Commissioner Moon Sung-yo, Jeonbuk Governor Lee Won-taek, Gunsan Mayor Kim Jae-jun and Hyundai Vice President Shin Seung-kyu attended the office opening. Gunsan has pledged prompt permit processing and administrative support, while the development agency plans to help with infrastructure and living conditions for workers.

Hyundai is also discussing technical cooperation with global companies and financing with Korea Development Bank and other lenders. Final financing arrangements, technical partners and detailed electricity and water supply commitments have not been announced.

Solar power and hydrogen follow

Hyundai established the first solar project company on September 17 for a phase with planned capacity of 200 megawatts. Construction is scheduled to begin in late 2027, alongside the hydrogen production facilities.

The broader plan allocates 1.3 trillion won to solar generation and 1 trillion won to a water electrolysis plant. Electrolysis uses electricity to split water into hydrogen and oxygen. The hydrogen can then be used as a fuel or industrial input.

Electricity supply connects the two projects. Producing hydrogen through electrolysis requires substantial power, and using renewable electricity can reduce emissions from that production process. The climate impact depends on how the electricity is generated.

The 200 megawatt solar figure describes generating capacity, while the data center figures describe investment and building size. The operating relationship between the solar facilities, hydrogen plant and computing center will depend on their electricity supply arrangements.

Hyundai has also allocated 400 billion won to an AI hydrogen city. That places a city development component alongside the industrial facilities, with the construction sequence currently centered on computing first, followed by energy production and robotics.

Public support reaches suppliers and workers

The development agency revised the Saemangeum master plan on October 28 to support industries including robotics, AI and hydrogen. The changes also introduce land for energy development and expand the industrial base for RE100, the goal of matching a company's electricity use with renewable electricity.

Proposals in the 2027 budget include about 70,000 pyeong of land for long leases and a shared logistics center for robot parts. A pyeong is a Korean area measure equal to roughly 3.3 square meters, putting the proposed land area at about 231,000 square meters. The budget proposals are under discussion in the National Assembly.

The lease land is intended to reduce the initial investment burden on businesses. A shared parts logistics center would support the robot cluster and related suppliers, extending public support beyond Hyundai's own facilities.

A pilot transport service is also planned for workers at Saemangeum businesses. Known as demand responsive transport, it responds to passenger requests rather than operating only along a fixed route, helping address travel needs across the developing industrial area.

Jeonbuk Governor Lee Won-taek said the province would support companies through the administrative process and work to turn investment into local economic activity:

We will provide all necessary administrative support so companies can focus on their investments, and be a steadfast partner in ensuring that investment results lead to local jobs and business growth.

What the next milestones mean locally

March 2027 is the first major test of the construction schedule. Reaching that target requires the remaining approvals to be completed and preparations for the site to advance through the winter.

Local benefits will arrive in different stages. Construction creates demand for building work and related services. Later, the data center, energy facilities and robot cluster would require operating staff, maintenance and suppliers. The proposed lease land and logistics center are intended to help related businesses establish themselves nearby.

AutoEver's payment schedule through 2031 also shows that the investment extends beyond the opening of an office or the first construction contract. The financial commitment, building program and start of computing services each follow their own timetable.

For Gunsan and Jeonbuk, the immediate change is a permanent Hyundai team responsible for moving those timetables forward. The larger economic result will depend on completed facilities, operating businesses and the local companies and workers able to take part.

Key Points

• Hyundai opened its Saemangeum project office in Gunsan on October 30, 2026.
• The 5.8 trillion won AI data center accounts for about 64% of the planned 9 trillion won investment.
• Construction is targeted for March 2027, with full data center services planned for early 2030.
• Two project companies will separate construction and infrastructure from GPU computing services.
• Hyundai AutoEver approved 114.608 billion won for a 26% stake in the planned HMG AI Factory.
• Solar and hydrogen facility construction is scheduled for late 2027, followed by the robot cluster in 2028.
• Public support proposals include land for long leases, shared robot parts logistics and transport for workers.