"Ulsan is a city that has all the core elements of artificial intelligence (AI): manufacturing-based data, power, and talent. We expect the direct and indirect investment impact of the nation's largest AI data center to exceed 100 trillion won."
Ulsan Mayor Kim Doo-kyum explained "Ulsan's digital transformation strategy" in an interview with ChosunBiz on the 18th. Ulsan is Korea's flagship manufacturing city. Global corporations such as Hyundai Motor, HD Hyundai Heavy Industries, S-Oil, and SK Innovation are based there.
Ulsan City is pushing to build the nation's largest "AI data center" in partnership with SK Group and Amazon Web Services (AWS), the world's No. 1 cloud company. The total project cost is 7 trillion won, and it will be created on a 36,000-square-meter site (about 11,000 pyeong, the size of 11 soccer fields) within the Ulsan Mipo National Industrial Complex. SK Group plans to expand the data center's capacity to 1 gigawatt (GW) in the future.
Kim said, "Ulsan's manufacturing capabilities have led Korea's economy, and its accumulated manufacturing data is the most extensive," adding, "It is the optimal city to carry out the national strategy of becoming an AI powerhouse, with power self-sufficiency and a talent training system." The following is a Q&A with Kim.
―What are the investment attraction results in the eighth popularly elected term?
"Since taking office through the end of last month, we have attracted 34.4912 trillion won in investment. Large-scale investments have continued across flagship and new industries, including S-Oil, SK Group and AWS, Hyundai Motor, Korea Zinc, and Samsung SDI. The job creation effect also reaches 13,068 people."
―What is the secret to attracting investment?
"Bold regulatory reform and exceptional support for corporations. We created a business-friendly city by lifting development-restricted zones, enacting a special act to promote distributed energy for the introduction of a differential tariff system that can lower energy rates, implementing a wide-area visa to bring in foreign professionals, and providing one-stop permits through dispatching dedicated public officials to corporations."
―What is the top achievement of the eighth popularly elected term?
"It is a budget-related achievement. We adjusted the calculation method for general grants in our favor. Ulsan has long suffered 'reverse discrimination' in general grants, paying a lot in national taxes while receiving little central government support. We solved this by adding 'industrial economy expense,' the administrative expense for managing industrial complexes, to the calculation indicators. The size of general grants has increased every year, and this year we secured a record high of 929.9 billion won. It is also meaningful that we reduced local government bonds. When I took office, the debt ratio was 18.5%, but we cut it to 10.89%. In amount, that means repaying 250 billion won of debt."
―What is Ulsan's industrial digital transformation strategy?
"We are transforming into an 'AI-based manufacturing innovation city' by integrating AI into the four key industries of automobiles, shipbuilding, petrochemicals, and nonferrous metals. We enacted a local government ordinance to foster industries, support AX transition on manufacturing sites, and established a full-cycle AI talent training system. We launched the Ulsan AI Committee, a public-private expert group, and the 'U-Next AI Council,' a policy advisory body, and we are preparing large-scale projects linked to the national AI strategy."
―What is the status of the Ulsan AI data center project?
"It is the nation's first and largest AI-dedicated hyperscale data center, being built by SK and AWS. Basic construction is underway, and the first phase will be completed in September 2028 with a capacity of 100 MW. We will expand to 300 megawatts (MW) by 2030, with the potential to grow to the 1 GW level in the long term."
―What effect will it have on Ulsan?
"SK Group's investment alone has been set at about 70 trillion won, and including follow-up investments by global big tech companies and domestic corporations, we expect an impact of more than 100 trillion won. Ulsan will leap forward as a data center hub in the Asia-Pacific region."
―Why does Ulsan have strengths in the AI industry?
"We have all of the following: manufacturing data at the nation's highest level, high power self-sufficiency, and a full-cycle AI talent training system. Power self-sufficiency is currently 103% and is expected to rise to 238% in 2026, when Saeul Units 3 and 4 (2.8 GW) are completed in 2026. In particular, if floating offshore wind power is also put into operation, we believe the power self-sufficiency rate will exceed 300%. Also, if the Mipo National Industrial Complex is designated as a specialized area for distributed energy, power direct trading can significantly reduce the burden on corporations."
―What is your view of the crisis in the petrochemical industry?
"Amid global oversupply, China's catch-up, and the pressure of carbon neutrality, the industry faces a structural crisis. Major petrochemical corporations succeeded in turning to profit from the previous quarter, but that is a temporary effect due to improved refining margins from oil prices and exchange rates, and is far from a fundamental overhaul. The government, in response to the petrochemical crisis, designated areas such as Yeosu and Seosan as regions for preemptive response to industrial crises, and Ulsan also needs to be designated. We have asked the government for this."
―What are the tasks for strengthening local autonomy?
"We need to boldly transfer national land use rights, taxation rights, and administrative and organizational rights to localities. To create jobs and improve living conditions, we need authority over land use, and we should also consider transferring key tax bases such as income tax and corporate tax to local governments. Responsibilities in health care, education, and welfare are growing, but authority transfers are insufficient."