Hyundai Motor Group said it will work with domestic policy finance institutions to build an advanced industrial ecosystem in the Saemangeum area of North Jeolla. Through this agreement, the group plans to speed its leap into a future technology corporations focused on robots, artificial intelligence (AI), and energy solutions.
Hyundai Motor Group said on the 6th that it signed a "financial support and cooperation agreement between Hyundai Motor Group and policy finance institutions related to the Saemangeum project" with major policy finance institutions, including Korea Development Bank, Industrial Bank of Korea, The Export-Import Bank of Korea, and Korea Credit Guarantee Fund (KODIT), at Korea Development Bank's main building in Yeouido, Seoul.
This agreement is a follow-up measure that supports the "investment agreement (MOU) for fostering advanced industries in robots and hydrogen in Saemangeum and creating an AI hydrogen city," signed with the government and Jeonbuk State in February. It is meaningful in that it puts in motion a public-private cooperation system to design the financing and investment structure for the Saemangeum project.
Vice Chairman Chang Jae-hoon said that day, "The Saemangeum project has plans for 10 gigawatts (GW) of renewable energy, transportation networks, and new city infrastructure that will bring in 700,000 people," adding, "This is an exceptionally fast pace and a testament to the firm will shared by the public and private sectors for the project."
Under the agreement, Korea Development Bank selected Hyundai Motor Group's Saemangeum project as the first initiative of the policy finance institutions council. It plans to advise on the project's financial structure by linking productive finance and provide necessary support. Industrial Bank of Korea will support business-linked financing, including productive finance, for small and midsize corporations and mid-tier corporations related to robot and hydrogen parts.
The Export-Import Bank of Korea will not only provide export-import financing support but also help domestic corporations with their export-import activities by leveraging overseas market information and international networks. Korea Credit Guarantee Fund (KODIT) plans to strengthen overall project stability by improving financial access for small and midsize corporations and mid-tier corporations related to robot and hydrogen parts and supporting guarantees for using climate finance.
Hyundai Motor Group will establish a hub for innovative growth in the Saemangeum area and share key information arising during project implementation with the partner institutions.
In February, Hyundai Motor Group unveiled a vision to secure future growth engines by investing 9 trillion won from this year in robots, AI, hydrogen energy, solar power generation, and an AI hydrogen city on a 1,124,000-square-meter (about 340,000-pyeong) site in Saemangeum. It is part of the domestic mid- to long-term investment plan of 125.2 trillion won that Hyundai Motor Group released last year.
Hyundai Motor Group created a dedicated regular organization and streamlined implementation systems by core area, including AI and hydrogen. It is also taking part in the government-led "Saemangeum–Jeonbuk Grand Innovation Task Force (TF)" to discuss permits, policy support, and infrastructure development. A Hyundai Motor Group official said, "We plan to continue necessary consultations and flesh out phased implementation plans and investment schedules."
After the signing ceremony, the vice chairman met with reporters and said, "We have made some progress up to deriving tasks and the specific direction of plans for the Saemangeum project," adding, "Within this, we will adjust detailed items based on their importance." On exports of products such as robots, the vice chairman noted, "First, we are crafting detailed plans for scale, including development and mass production," and explained, "Building the ecosystem comes first, and we are focusing on securing related technologies and building the ecosystem while taking a long-term approach."
Hyundai Motor Group plans to begin executing the 9 trillion won investment starting in 2027. The vice chairman said, "Hyundai Motor Group will begin investment execution for five business segments starting in 2027," adding, "Considering site development and supply chains for that, we will identify what we need to do and execute sequentially." The five business segments are robots, AI, hydrogen energy, solar power generation, and an AI hydrogen city.