Kakao, the nation’s representative platform company, will build an AI-based digital hub worth 600 billion won at the Wangsuk District in Namyangju, Gyeonggi-do.
Kakao’s digital hub project is part of the Gyeonggi-do provincial government’s efforts to attract 100 trillion won or more.
By attracting Kakao’s investment, the provincial government is expected to not only build a new growth ecosystem for industries in the northern part of the province with weak advanced industry infrastructure, but also contribute to transforming the manufacturing industry of northern Gyeonggi-do.
At the provincial government building on June 13, Gyeonggi-do Gov. Kim Dong-yeon struck a contract on the investment of the “AI-based digital hub construction project” with Kakao President Jeong Shin-ah, Namyangju Mayor Joo Kwang-deok and President Lee Han-joon of Korea Land and Housing Corp. (LH).
Under the agreement, Kakao will build an AI-based digital hub at the 34,000 square meter area of the urban advanced industry complex of the Wangsuk District in Namyangju. The project will cost about 600 billion won.
Construction will begin in 2026 and dedication is scheduled for 2029.
Gyeonggi-do and Namyangju City will offer full support for overall administrative procedures, such as the securing of a site and licenses and permits while LH will be in charge of building the urban advanced industry complex and supplying the necessary site.
Gyeonggi-do Gov. Kim said, “Whenever I had been invited and participated in the Davos Forum for the past two years, one of their greater themes was about technology advancement and the core of it was AI. I’ve discussed with many leaders how much the advancement of AI will have an impact on our lives, and pondered how to set its direction, so I’m very pleased to attract Kakao’s digital hub to Namyangju.”
“First of all, Gyeonggi-do has been pushing ahead with five industrial belts, particularly with an AI culture industry belt, stretching from Paju to Namyangju, in the northern part of the province, being planned, and Kakao’s AI-based hub is expected to be the icing on the cake,” Gov. Kim said.
He promised that the provincial government will make efforts to process the implementation procedures as soon as possible and he expected the project to serve as a good opportunity to converge technology recognition data centers to the Wangsuk urban advanced industry complex and he asked all to join forces to express unchanged determination to transform the northern part of the province and implement it as planned through the project.
Kakao President Jeong said, “Kakao’s goal is to enable all people to use AI services with ease and conveniently for their daily life in an era of popularizing AI, and Kakao’s digital hub is to build a key infrastructure for popularizing AI and we will continue to cooperate for the development and shared growth of the Namyangju area.”
The deal takes on significance since the northern part of the province, struggling to attract companies due to restrictions in the Seoul metropolitan area and reverse discrimination, had succeeded in attracting Kakao.
The provincial government expects the deal to not only establish a foothold to grow the northern part of the province into a hub for the AI industry, but also contribute to balanced regional development through the building of data and Ai-based industry ecosystem and job creation.
Gyeonggi-do made strenuous efforts to attract Kakao, after the provincial government heard that the platform company was searching for a site to build a digital hub.
The project is in keeping with the 8th term autonomous Gyeonggi-do provincial government’s plan to attract more than 100 trillion won and transform the northern part of the province.
It was on Sept. 2, 2024 that Gyeonggi-do had a first investment consultation session with Kakao. One week later, on Sept. 9, the provincial government conducted a familiarization tour to the Wangsuk District along with Namyangju City and Kakao.
The signing of the contract came after the provincial government and Namyangju city held a joint strategy meeting to attract Kakao’s digital hub on Feb. 5, 2025.
The latest investment is expected to lead to the construction of the AI culture industry belt in the northern part of the province, including Paju, Uijeongbu and Namyangju among the five industry belts being pushed by the provincial government, including the semiconductor-bio-mobility belt and the AI knowledge industry belt in the southern part of the province, including Suwon, Seongnam, Yongin, Gwacheon, and Anyang.
Kakao plans to expand the shared growth model with the local community.
The platform company plans to create a communication space for the local community, in which startup companies and citizens can use freely and operate programs for hiring preferentially Gyeonggi-do residents, and supporting digital transformation for small businesses and merchants and exploring markets.
The Namyangju Wangsuk public housing district will be created in the 1,029 square meter area, including Jinjeob-eup, Jingeon-eup, Toegyewon-eup and Ilpae-dong and Ipae-dong areas. The public housing district will be dedicated in the late 2028.
In 2026, 1.2 million sq. meters, part of the district will be designated as a urban advanced industry complex to secure self-sufficiency of a new city.
_카카오 AI기반 디지털 허브 건립 투자협약.JPG)
