Seoul: Hyundai Motor Group announced a significant step forward in its ambitious plan to transform the Saemangeum reclaimed area into a hub for future mobility solutions, with the signing of a memorandum of understanding (MOU) with major state-run financial institutions. This preliminary agreement involves the Korea Development Bank (KDB), the Industrial Bank of Korea, and the Export-Import Bank of Korea, focusing on financing arrangements and policy support for the 9 trillion-won (US$5.9 billion) project.

According to Yonhap News Agency, the initiative is aligned with South Korea's strategic goal to establish a competitive edge in key industries over the coming decades. KDB officials highlighted the importance of Hyundai's projects, noting their potential impact on the nation's competitiveness. The Saemangeum project is expected to feature prominently within the country's 12 key strategic industries.

This latest MOU builds on a previous agreement signed in February between Hyundai, the central government, and North Jeolla Province, aimed at constructing an innovation cluster in Gunsan. This cluster will focus on artificial intelligence (AI), robotics, and hydrogen technologies.

The detailed investment strategy includes significant allocations such as 5.8 trillion won for an AI data center, 400 billion won for robotics manufacturing and components, 1 trillion won for a water electrolysis facility, and 1.3 trillion won for solar power infrastructure, among other projects.

Hyundai Motor Group Vice Chair Chang Jae-hoon emphasized that the company plans to secure funding both internally and through external investors, including institutional and corporate entities. The phased investments are set to commence in 2027, with an initial focus on technology development and establishing a comprehensive robotics business ecosystem.