en.Wedoany.com Reported - The South Korean government will utilize an expedited review exemption to fast-track the Jangseong Advanced Data Center project in South Jeolla Province, which has been selected as the 7th project under the Regional Vitality Investment Fund.
The government announced this policy on the 5th during an emergency economic headquarters meeting and economic ministers' meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol. The advanced data center will be built in the Gwangju Research and Development Special Zone, located in Jangseong County, South Jeolla Province, with a total project cost planned at 395.9 billion won.
The project was selected as the 7th investment target in November last year by the Korea Growth Investment Corporation, the operator of the fund of funds, and a project financing (PF) loan agreement was signed in February this year, with construction commencing. According to the project schedule, funds such as project financing (PF) loans from financial institutions will be gradually invested, with completion targeted for December next year. After a three-month stabilization phase, operations are expected to begin in March 2028.
South Jeolla Province and Jangseong County are required to establish a special purpose company (SPC) for the project and contribute 8 billion won by early February next year. The government believes that to proceed as planned, the budget for the SPC's capital contribution must be secured quickly, and has therefore decided to apply an exemption channel to the project, waiving the prerequisite local fiscal investment review for local government contributions. This is expected to advance the contribution timeline by 9 to 10 months.
A government official stated that supporting the timely construction of key artificial intelligence (AI) infrastructure aims to promote AI transformation in regional industries and attract advanced companies, while alleviating the concentration of data centers in the capital region. The government expects the data center project to generate a production inducement effect of 800 billion won and a job creation effect of approximately 3,000 people, injecting vitality into the regional economy.
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