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Ulsan City to Foster Physical AI & AI Data Centers… Driving Industrial Transformation
Date
2026.07.27
Views
109

According to Newsis,

(Ulsan = Newsis) Reporter Yoo Jae-hyung – Ulsan Metropolitan City announced on the 24th that it will concentrate its administrative resources on nurturing Physical AI and AI data centers to leap forward as a global hub for Industrial AI Transformation (AX).

On the 29th of last month, the national government unveiled the 'Republic of Korea Great Leap Forward Three Mega Projects,' which focus on intensive fostering across three core sectors: semiconductors, Physical AI, and AI data centers.

In alignment with this announcement, major conglomerates including Samsung and SK Group revealed investment plans totaling KRW 4,755 trillion across the Yeongnam, Honam (Southwest), and Chungcheong regions.

Viewing this project as a catalyst for Ulsan's industrial AI transformation (AX), the city held a strategy meeting on the 24th to formulate response measures for the 'Three Mega Projects.'

During the meeting, the city comprehensively reviewed the strategic direction of the 9th popular election municipal administration along with private investment plans. As a result, Ulsan determined that it holds strong competitive advantages in Physical AI and AI data centers, deciding to focus its development efforts on these two domains.

Moving forward, the city plans to lead the development and real-world verification of Physical AI technologies spanning general manufacturing sectors, including robotics, shipbuilding, and automotive industries. It aims to establish itself as a leading city in Physical AI by expanding these developed technologies across the entire Yeongnam region, including Gumi, Pohang, and Changwon. To address employment anxiety among workers resulting from the adoption of Physical AI, the city will establish a Labor Policy Committee with trade union participation to drive related policies through social consensus.

In addition, Ulsan will accelerate the construction of South Korea's first 1-gigawatt (GW) AI data center currently underway while concentrating administrative efforts on attracting additional ultra-large-scale AI data centers. It also plans to cluster related industries, such as Battery Energy Storage Systems (BESS) and Uninterruptible Power Supplies (UPS).

Furthermore, the city will build a dense Industrial AI Transformation (AX) ecosystem by strengthening software capabilities—including training specialized talent and developing industry-tailored small large language models (sLLMs).

Ulsan City also plans to devise customized policies to drive industrial AI transformation (AX) and secure policy execution capabilities through organizational restructuring, including the establishment of a new AI Innovation Industry Office.

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Source Text

Source: Newsis (July 24, 2026)

** This article was translated from Korean.