The Financial Services Commission selected the "Sinan Ui offshore wind power project" as the first funding program of the Public Growth Fund. The Financial Services Commission (FSC) said on the 29th that at the Public Growth Fund Fund Management Deliberation Committee, it approved a proposal for the Advanced Strategic Industry Fund to participate in the project with senior and junior long-term loans totaling 750 billion won.
This support is one of the seven "first megaprojects" that the Public Growth Fund released in Dec. last year and the first follow-up step, marking the start of the fund's full-fledged financing for industry on the ground. The seven megaprojects encompass: ▲ fostering K-Nvidia ▲ building a national AI computing center ▲ renewable energy and solid-state battery businesses ▲ AI Semiconductor foundry ▲ power semiconductor production plant ▲ energy infrastructure construction.
Among them, the Sinan Ui offshore wind project is considered foundational infrastructure that supplies power infrastructure needed for advanced industrial complexes such as the national AI computing center. As the largest offshore wind farm in the country (390MW), once completed it will produce enough electricity to power about 360,000 households and exceed the maximum power demand (270MW) of the largest domestic data center.
The project is one of the 15 ultra-innovation economy projects in the "new government economic growth strategy" that the government released in Aug. last year, and serves as a lead model in a roadmap to expand offshore wind power installed capacity to 25GW by 2035 and reduce the levelized cost of electricity from the current level (330 won/kWh) to 150 won/kWh.
The Sinan Ui project is the first offshore wind project over 300MW to be pursued solely with domestic capital. Aside from the turbines, most equipment will be localized (97%), and Hanwha Ocean will newly build and deploy a dedicated installation vessel worth 800 billion won. By accumulating end-to-end capabilities spanning design, construction, installation, and operation domestically, it is expected to lay the groundwork for a self-reliant offshore wind industry ecosystem.
The project also adopts a "wind income" model that is designed for residents to directly share revenue. Residents of Sinan County will participate as bond investors in the project SPC, with about 25 billion won in additional annual revenue returned to the region. A portion of the revenue from renewable energy certificates (RECs) issued by the Korea Energy Agency (KEA) will be provided in the form of local currency or vouchers, contributing to revitalizing the local economy.
The Sinan Ui offshore wind project totals 3.4 trillion won, and in addition to the Public Growth Fund, the "Future Energy Fund" jointly created by the Korea Development Bank and the five major commercial banks (KB, Shinhan, Hana, Woori, NongHyup) will provide 544 billion won (204 billion in equity and 340 billion in junior loans). This is the first investment by the Future Energy Fund and is seen as a starting signal for large-scale public-private renewable project finance.
The Financial Services Commission (FSC) expects that this investment will improve business speed and financing conditions not only for offshore wind but also for semiconductors, AI, batteries, and power infrastructure projects. With the Public Growth Fund's junior capital serving as a risk buffer, a "priming effect" of increased private capital inflows is expected, it said.
The Sinan Ui project plays a key role among the first megaprojects, four of which (56%) are outside the capital region. In South Jeolla, advanced strategic industry specialized complexes worth 40 trillion won are being established (Haenam AI data center, Hwasun vaccine industry special zone, Gwangyang secondary battery, Yeosu clean hydrogen, Goheung space industrial complex).
Accordingly, industrial power demand is expected to surge. The Financial Services Commission (FSC) said the Sinan Ui offshore wind project is expected to serve as both a stable power supply base for these industries and a hub for promoting carbon neutrality.
An official at the Financial Services Commission (FSC) said, "The Public Growth Fund will play a priming role for the growth of advanced industries by injecting policy funds into long-term, high-risk, large-scale investments that are difficult for the private sector to handle," adding, "This investment in the Sinan Ui offshore wind project will serve as a catalyst for expansion across the ecosystem of future industries such as semiconductors, AI, and energy."
The Sinan Ui offshore wind power project is slated to begin full-scale disbursement with the SPC's capital contribution in the third quarter of this year, and after about three years of construction, it aims for commercial operation in early 2029. The Financial Services Commission (FSC) plans to operate an offshore wind task force in cooperation with the Ministry of Climate, Energy and Environment and other related ministries to regularly check project progress and minimize causes of delay.