North Jeolla Special Self-Governing Province is going to construct a long-distance hydrogen pipeline to supply hydrogen generated by the Hyundai Motor Group at the Saemangeum National Industrial Complex to the neighboring areas.
Hyundai Motor, which requires a hydrogen distribution network, has aligned its objectives with the local government that wants to boost investments in the region. As the corporate-regional cooperative model is formed, the hydrogen city project by Hyundai, which is designed to realize local production for local consumption, is also anticipated to get a boost.
Hydrogen Generated at Saemangeum to be Delivered to Nearby Areas
North Jeolla Special Self-Governing Province talked about establishing a pipeline network with Gunsan City and Gimje City as well as Korea Gas Technology Corporation in June 2026 in order to supply hydrogen, which according to Hyundai Motor Group will manufacture at the Saemangeum National Industrial Complex, to neighboring regions, industry sources said.
Local governments have agreed to review a plan to go ahead and construct a 37.2-kilometer pipeline linking the Saemangeum National Industrial Complex to neighboring areas. The project will be developed in two primary phases. The supply network is addressed in sections of the Saemangeum National Industrial Complex to Gunsan-Gimje waterfront city – 29.8 km as well as the Saemangeum National Industrial Complex to Gunsan Port – 7.4 km. The project is projected to cost over 160 trillion won and be completed in 2029.
Hyundai Motor reportedly asked for infrastructure assistance from local governments, which led to the project. Hyundai Motor is working on a local production for local consumption AI hydrogen city project in Saemangeum, aiming at enhancing the level of energy self-sufficiency by means of the consumption of hydrogen produced domestically in the region.
Government Infrastructure Support Key to Success of 9 trillion Won Investment
Prime Minister Kim Min-seok went to the Saemangeum site in June 2026 and opined that “the government plans to actively pursue regulatory innovation, infrastructure expansion, and improved living conditions to create a Saemangeum where companies invest and young people stay.”
Referring to Hyundai Saemangeum project, he said that this takes into account that while Hyundai Motor has decided to pour in large-scale investment funds of almost 9 trillion won to finish the Hyundai Saemangeum project, it will be quite challenging for the project to get the momentum without any sort of a supporting infrastructure.
The business community concurs that the construction of a hydrogen city in the region, as a component of the Saemangeum project undertaken by Hyundai Motor Group, is unlikely to be realized without government or local government support. Hyundai Motor Group is going to build a 200-megawatt water electrolysis plant in Saemangeum and generate almost 30,000 tonnes of clean hydrogen per year.
It is well to be noted that the AI data center as well as the robot cluster that Hyundai Motor Group is going to build in Saemangeum will consume some hydrogen, but many believe this alone to be insufficient for them to use up all the hydrogen produced. This implies that in order to expand the hydrogen business, more demand sources that can use surplus hydrogen frequently have to be secured.
That is why North Jeolla Special Self-Governing Province made the choice to build a sort of hydrogen highway with Gunsan and Gimje cities. North Jeolla Province is pushing ahead with an ambitious plan to construct 37 kilometers of long-distance supply network linking the Gunsan-Gimje waterfront city and Gunsan Port. This would broaden the sources of demand for hydrogen, not only for companies based in the Saemangeum industrial complex but also for those throughout the region.
An official involved in the project said that “The details have not yet been finalized,” but added, “We plan to build a long-distance pipeline network to smoothly distribute the hydrogen produced by Hyundai Motor Group.”
Interestingly, hydrogen is used within many fields, so production becomes active, and this leads to a beneficial cycle that again boosts consumption. Hyundai Motor Group believes that the more hydrogen it produces, the more it can reduce the cost when it comes to producing hydrogen by way of economies of scale.
Hyundai Motor Group’s hydrogen businesses are expected to draw investments for other sectors in the area as they grow, hope the local governments. Hyundai Motor Group produces thousands of hydrogen commercial vehicles every year, comprising hydrogen buses as well as trucks, at its Jeonju plant located in Wanju County, North Jeolla Province. Hydrogen demand in the Saemangeum area is projected to increase, and orders are anticipated to be made for commercial vehicles to transport the hydrogen. The growth in demand for commercial vehicles is also affected by the expansion of the regional hydrogen supply network and the enhancement of hydrogen charging infrastructure. If the prices of hydrogen units fall via mass production, the proportion of consumers who want hydrogen cars will increase over time, an official of the industry said. If more locations adopt hydrogen, producers can also take steps to grow their business.
Hyundai Motor Group plans to construct a large-scale solar power plant in Saemangeum so as to obtain electricity to run the water electrolysis facility. The renewable energy industry of the region is also projected to gain traction.
Hyundai Announces Formation of Dedicated Organization to Support measures, including subsidies, on the way
The industry anticipates the local governments to keep supporting Hyundai Motor Group’s hydrogen business with additional measures. When the Hyundai Motor Group disclosed the Saemangeum project in February 2026, the North Jeolla Province right away set up the Hyundai Motor Investment Support Group. In a rare move, the local government established a special organization to promote the business of a single company, showing its active commitment to provide support.
As a matter of fact, North Jeolla Province lately revised its regulations to create a foundation for offering subsidies of almost 100 billion won to companies investing over 1 trillion won in the region or hiring over 1,000 new employees, raising the threshold of support for Hyundai Motor Group. It is also said that the local governments are looking into how an additional hydrogen-specialized complex, in which support for hydrogen vehicle and fuel cell development can be granted, may be established in North Jeolla. When the government discloses the new designation of a hydrogen-specialized complex, Hyundai Motor, North Jeolla Province, as well as the Saemangeum Development and Investment Agency, will discuss and participate in the open competition, stated a local government official.
Hyundai Motor Group is said to have pushed for more subsidy support from local governments in order to boost hydrogen production and consumption. According to an industry official, it’s not something that an individual company is capable of accomplishing with its capabilities alone. Rather, it needs to be developed into a framework where companies as well as the region can grow together by way of public-private cooperation.