SEOUL, February 27, 2026 – Hyundai Motor Group (the Group) announced today it has signed a Memorandum of Understanding (MOU) with the South Korean government and Jeonbuk State to establish an innovation hub in the Saemangeum area of Gunsan city.
This strategic move positions the Group as a leader in robotics, AI and energy solutions, with plans to invest approximately KRW 9 trillion beginning in 2026 to construct a cutting-edge industrial complex. Through this initiative, the Group aims to pioneer the seamless integration of advanced AI and hydrogen energy transformation to advance human progress.
“What we're building in Saemangeum will reshape not just a region, but Korea's industrial future. Hyundai Motor Group brings together the manufacturing excellence, AI capabilities, and hydrogen energy expertise needed to establish a truly advanced industrial ecosystem. This is how we translate our commitment to 'Progress for Humanity' into reality.” – Jaehoon Chang, Vice Chair of Hyundai Motor Group
The Group will establish a major innovation hub dedicated to advancing robotics, AI, hydrogen energy, solar power and AI-driven smart city solutions. A significant portion of the investment will focus on new businesses based on these technologies, contributing to the development of Korea’s future industrial competitiveness. Through expanded investment across various regions, the Group aims to stimulate local economic growth and lay the foundation for the sustainable growth of Korea and its mobility industry.
Saemangeum is a strategic location for this transformative project due to its abundant renewable energy resources and comprehensive transportation infrastructure, including rail, port and airport connectivity.
This investment is a core initiative within the Group’s broader plan to invest KRW 125.2 trillion in Korea from 2026 to the end of 2030, announced last year.
The signing ceremony was attended by key government officials and Hyundai Motor Group executives, including:
The investment will be allocated across five key areas:
| Investment Area | Amount (KRW) | Details |
|---|---|---|
| AI Data Center Infrastructure | 5.8 trillion | Processing massive datasets for autonomous driving and robotics |
| Robotics Manufacturing Cluster | 400 billion | Complete robot systems production and foundry services |
| Polymer Electrolyte Membrane (PEM) Electrolyzer Plant | 1 trillion | Large-scale clean hydrogen production |
| Solar Power Infrastructure | 1.3 trillion | Supporting energy-intensive operations |
| AI Hydrogen Smart City Development | 400 billion | Integrating advanced technologies into urban ecosystems |
The Group targets the AI data center and solar power infrastructure to break ground in 2027 and reach completion by 2029. The PEM electrolyzer plant is slated to break ground the same year, commence operations in 2029, and undergo phased capacity expansion thereafter. The robotics cluster is expected to begin construction in 2028 and be completed in 2029. The Group is in dialogue with the funding partners, including the Korea evelopment Bank, to structure financing for the project.
A high-capacity AI data center is central to the strategy, serving as the essential infrastructure for implementing physical AI across autonomous driving and robotics.
Key features will include:
By consolidating and processing large-scale learning requirements across these multiple technological domains, the facility will establish a foundation for accelerating physical AI innovation.
To implement customer-tailored robotics, the Group will establish a comprehensive robotics manufacturing cluster designed to translate its manufacturing expertise and proven innovation capabilities into advanced production systems. The cluster will:
Capitalizing on the region’s renewable energy resources, the Group will construct a 200 MW-class PEM electrolyzer plant to produce clean hydrogen at scale, establishing Korea’s energy self-sufficiency and accelerating the nation's transition to a hydrogen economy.
The facility will deliver:
To accelerate Korea’s broader transition to a hydrogen economy, the Group plans to systematically expand electrolyzer capacity across regions, targeting 1 GW total capacity domestically. It has already commenced construction of its Ulsan Fuel Cell Plant for manufacturing PEM electrolyzers and hydrogen fuel cell components, with completion targeted for 2027.
The Group’s proprietary PEM electrolyzer technology, developed through domestic R&D efforts, has achieved over 90 percent localization — a significant milestone establishing Korea’s technological independence and export capabilities in green hydrogen production.
Through these interconnected investments, the Group is building a comprehensive hydrogen ecosystem that positions Korea as a global leader in clean energy production and hydrogen-powered mobility.
To power these transformative initiatives and ensure operational sustainability, the Group will develop a gigawatt-scale of solar power capacity by 2035.
The solar portfolio strategy includes:
The AI Hydrogen Smart City will integrate the Group’s entire technological portfolio into a cohesive industrial ecosystem where AI, hydrogen and robotics converge.
The city integrates six critical elements through the D.E.S.I.G.N. framework:
The city will feature:
The Group plans to expand its smart city solutions and urban AI applications globally based on the city-scale demonstration experience gained in Saemangeum.
The Saemangeum investment is projected to generate substantial economic benefits and promote balanced regional development.
The investment is expected to create:
The concentration of cutting-edge facilities will position the region as a global innovation hub and generate medium and long-term competitive advantages for Korea’s industrial future.
At CES 2026, the Group unveiled its AI Robotics Strategy to lead the emerging Physical AI industry. The Group is strengthening strategic collaborations with industry leaders including NVIDIA and Google DeepMind, combining world-class automotive manufacturing expertise with cutting-edge AI and hydrogen technologies to lead the transformation of how people work, travel and live in a sustainable future.
Through this mid-to-long-term investment, the Group expects to advance related industries and contribute to strengthening Korea’s position as a global innovation hub.