GWANGJU < invest Korea

Panoramic View of Gwangyang Steelworks [Provided by Gwangyang Steelworks]

According to Yonhap News,

(Jeonnam-Gwangju=Yonhap News) Reporter Park Chul-hong = The Gwangyang Bay Area in the Integrated Special City of Jeonnam-Gwangju will be fostered as a national strategic hub supplying basic raw materials and core materials for secondary batteries, including lithium and nickel.

The government's National Advanced Strategic Industry Committee officially designated the Gwangyang, Suncheon, and Yeosu areas in Jeonnam-Gwangju as a National Advanced Strategic Industry Secondary Battery Specialized Complex on the 30th.

With an established industrial infrastructure encompassing lithium and nickel refining and smelting, production of core materials such as cathodes and graphite, and spent battery recycling, the Gwangyang Bay Area is expected to be developed into "Korea's sole secondary battery basic raw material supply chain ecosystem."

The specialized zone spans 21.32 million square meters across six industrial complexes, including Yulchon 1 General Industrial Complex, Sepung General Industrial Complex, Haeryong General Industrial Complex, Hwanggeum General Industrial Complex, Gwangyang Iksin General Industrial Complex, and Gwangyang National Industrial Complex Donghoan. While seven industrial complexes were initially submitted during the public contest, the newly developed Future Advanced Materials National Industrial Complex was excluded during the uation process.

Corporate investments in the zone are projected to reach approximately KRW 10 trillion (approx. USD 7.45 bln), combining KRW 4.7551 trillion (approx. USD 3.54 bln) already executed and KRW 5.3724 trillion (approx. USD 4.00 bln) in planned future investments. The investment amount from seven leading POSCO Group companies alone, including POSCO Holdings and POSCO Future M, stands at KRW 3.86 trillion (approx. USD 2.87 bln).

The project budget for establishing the specialized zone is set at KRW 530.3 billion (approx. USD 394.8 mln), with KRW 325.5 billion from the national treasury, KRW 174.0 billion from local government funds, and KRW 30.8 billion from private investment.

The integrated city government plans to expand key infrastructure such as water supply, wastewater treatment, power grid, and access roads, while expanding the Gwangyang Bay industrial ecosystem—currently centered on raw materials and components—into equipment, parts, battery cells, energy storage systems (ESS), and recycling sectors.

This designation comes three years after Jeonnam opted to jointly bid for a semiconductor zone with Gwangju instead of secondary batteries during the first national advanced strategic industry contest in 2023. At the time, Jeonnam chose not to apply for secondary batteries due to government guidelines prohibiting duplicate applications, opting instead to collaborate with Gwangju on a next-generation packaging specialized zone for system semiconductors. After missing out on the semiconductor designation, Jeonnam actively pursued additional designation for the Gwangyang Bay secondary battery zone, ultimately securing the selection.

Industry analysis attributes the selection to the high concentration of raw material and component companies in the Gwangyang Bay Area specializing in lithium/nickel refining and cathode/graphite production.

The integrated city expects the designation to strengthen domestic supply chains for core minerals currently reliant on foreign imports, while diversifying Gwangyang Bay's industrial structure—traditionally focused on steel and petrochemicals—into secondary batteries and advanced materials. Plans are also underway to establish specialized talent training programs with local universities and research institutes, secure national funding for core infrastructure, and attract additional corporate investments.

Min Hyung-bae, Mayor of Jeonnam-Gwangju Integrated City, stated, "With this designation, the Gwangyang Bay Area has become a national strategic hub responsible for South Korea's battery supply chain. We will build an industrial ecosystem where corporate investments thrive, technology and talent converge, and quality jobs are continuously created."

pch80@yna.co.kr



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Source Text

Source: Yonhap News (September 30, 2026)

** This article was translated from Korean.