BS Group noted on the 22nd that the 'Solar City' business district, under development in Haenam County, Jeollanam-do, is emerging as an optimal location for establishing a high-tech industrial cluster based on stable renewable energy supply and ample land, among other ideal infrastructure.
Solar City is a large-scale public-private partnership urban development project that BS Group is pursuing in collaboration with Jeollanam-do and Haenam County, covering approximately 20.9 million square meters (6.32 million pyeong) of land in the Haenam area.
Solar City is equipped with abundant renewable energy based on climactic conditions such as the highest levels of solar radiation and wind speed in the country. It has the core requirements needed to attract high-tech industries, such as ample land and industrial water. Recently, as Jeollanam-do announced plans for the establishment of an 'AI Supercluster Hub,' interest in Solar City has been increasing.
Solar City is a large-scale public-private partnership urban development project that BS Group is pursuing with Jeollanam-do and Haenam County in an area of about 20.9 million square meters (6.32 million pyeong) in Haenam County. Within a 15 km radius, various corporations are currently developing a total of 4 GW of land and floating solar power, and utilizing resources for offshore wind power (7 GW) in the adjacent Yeongsan River reclaimed ground can enable the establishment of a total generation complex of 10 GW. This offers the prospect of stable renewable energy supply for AI data centers and RE100 industrial complexes.
The land for Solar City already has a development plan established under the special law for corporate cities. In June 2024, the site for the Solar City data center will be designated as a government opportunity development zone, securing various incentives such as tax benefits. There are income and corporate tax reductions, as well as benefits for acquisition and property taxes due to special provisions for corporate cities and the opportunity development zone designation. Additionally, the power needed for implementing RE100 and CBAM (Carbon Border Adjustment Mechanism) can be provided at the lowest rates in the country.
In October of last year, Jeollanam-do and Korea Electric Power Corporation signed an agreement for the early establishment of power infrastructure, including a 154 kilovolt (kV) substation. Accordingly, Solar City plans to actively pursue the designation of a distributed energy special zone from Jeollanam-do, which is scheduled for the first half of this year. If designated as a special zone, it is expected to implement Korea's first energy self-sufficient city model based on microgrid technology.
BS Group has previously signed a memorandum of understanding (MOU) to construct a hyperscale data center in Solar City, collaborating with major domestic and international data center corporations such as TGK, Samsung C&T, and LG CNS. Recently, as Jeollanam-do announced plans for the establishment of an 'AI Supercluster Hub,' interest in Solar City has been rising.
BS Group successfully attracted Redlands Christian School (RCS), a prestigious private school in the U.S., in February. School representatives will visit at the end of this month to conduct site inspections near the school area and will push forward with the project. Additionally, they are promoting the construction of a luxury hotel in Solar City through a commissioned operation agreement with Hotel Shilla. There are also plans to enhance medical infrastructure by attracting a general hospital and developing a care-oriented healthcare complex.
Meanwhile, foreign investors have pointed out the uncertainty of the domestic regulatory environment as a major entry barrier, highlighting the need for active regulatory improvements by the government. Industry experts emphasize that in order to secure global competitiveness in the AI industry and the environmental energy sector, it is essential to implement bold applications of regulation sandbox measures, including the expansion of regulatory exceptions in new industries, simplification of licensing procedures, and enhancement of tax benefits.