Wangsuk District in Namyangju Becomes AI Heart of Northern Gyeonggi

[Suwon Ilbo=Reporter Kim Gap-dong·Um In-yong] Kakao Corporation, a leading domestic digital platform company, will establish an 'AI-based Digital Hub' worth 600 billion won in the Wangsuk District of Namyangju.

Gyeonggi Province expects that through this investment attraction by Kakao, northern Gyeonggi, which has had a weak foundation in advanced industries, will have an opportunity to serve as the 'AI heart' while building a new growth industry ecosystem.

On the 13th, Gyeonggi Province Governor Kim Dong-yeon signed an 'Investment Agreement for Establishing an AI-based Digital Hub' at the Gyeonggi Provincial Government Office with Kakao CEO Jung Sin-ah, Namyangju Mayor Ju Gwang-deok, and Korea Land and Housing Corporation (LH) President Lee Han-jun.

Under the agreement, Kakao plans to establish an AI-based Digital Hub on approximately 34,000㎡ of land within the Wangsuk Urban Advanced Industrial Complex in Namyangju. The total project cost is approximately 600 billion won, with groundbreaking scheduled for next year and completion targeted for 2029.

Gyeonggi Province and Namyangju City will actively support all administrative procedures, including site acquisition and permits, for smooth project implementation, and LH will be responsible for developing the urban advanced industrial complex and providing the land.

Governor Kim Dong-yeon stated, "I was invited to the Davos Forum for two consecutive years, and one of the major topics each time was technological advancement, with AI at its core. I had many discussions with leaders about how AI's technological progress will greatly impact our lives, and through such dialogue and collaboration, I gained much insight. I am delighted that we have succeeded in attracting Kakao's AI-based Digital Hub to Namyangju," he said.

He continued, "Above all, Gyeonggi Province is promoting five industrial belts, and particularly the AI and Culture Industry Belt stretching from Paju to Namyangju in northern Gyeonggi. With Kakao establishing an AI-based hub, it will serve as an excellent catalyst for completion. The province will make maximum efforts to expedite implementation procedures. I hope the Wangsuk Urban Advanced Industrial Complex becomes an excellent venue where technology, data, and intelligence converge. Through this investment, we ask everyone to unite efforts to demonstrate unwavering resolve for the North Gyeonggi Major Overhaul project and proceed as planned."

Kakao CEO Jung Sin-ah said, "In the era of AI democratization, Kakao's goal is to enable all citizens to easily and conveniently use AI services in their daily lives. Kakao's 'Digital Hub' will be built as a core infrastructure for AI democratization, and we will continue to promote cooperation for the development and mutual prosperity of the Namyangju region."

The significance of this agreement lies in attracting a large-scale investment from Kakao, a leading domestic digital platform company, to northern Gyeonggi, which has faced difficulties in attracting businesses due to metropolitan regulations and reverse discrimination for an extended period, according to Gyeonggi Province's position. Through this agreement, the province has established the foundation for northern Gyeonggi to grow into a key hub city for the AI industry, and expects significant contributions to regional balanced development through establishment of a data and AI-based industrial ecosystem and creation of advanced jobs.

After learning that Kakao Corporation was searching for land to build a digital hub, the province made active efforts to attract the investment. It was a project that perfectly aligned with the 8th administration's 100 trillion won+ investment attraction strategy and the North Gyeonggi Major Overhaul project. Accordingly, the province held its first investment consultation with Kakao Corporation on September 2, 2024, and conducted an investment familiarization tour targeting the Wangsuk District on September 9, with Namyangju City and Kakao participating. Subsequently, on February 5 this year, the province and Namyangju City held a strategic joint meeting for attracting Kakao's Digital Hub and prepared support measures, leading to successful investment attraction.

The province expects this investment to play a major role as one of the five industrial belts under its promotion: the semiconductor, bio, and mobility belt; the AI and Culture Industry Belt centered on northern Gyeonggi including Paju, Uijeongbu, and Namyangju; and the AI Knowledge Industry Belt in southern Gyeonggi including Suwon, Seongnam, Yongin, Gwacheon, and Anyang.

Kakao plans to expand this project beyond simple facility construction to a co-prosperity cooperation model with the local community. The digital hub will feature a communication space for dialogue with the community, allowing startups and citizens free access, and will operate programs prioritizing recruitment of Gyeonggi residents and supporting digital transformation and market development for small business owners. Additionally, the company plans to jointly promote digital education programs with direct citizen participation, ensuring that technology translates into tangible benefits for the local community.

The Namyangju Wangsuk Public Housing District will be developed on 1,029 million㎡ (approximately 3.11 million pyeong) of land in Jijeop-eup, Jingeon-eup, Toegyewon-eup, Ilpae-dong, and Ipae-dong in Namyangju. Designated as a public housing district in 2019, groundbreaking occurred in June 2023, with completion scheduled for the second half of 2028. To secure urban self-sufficiency functions, the province plans to designate an urban advanced industrial complex of 1.2 million㎡ (approximately 360,000 pyeong) within the district next year.