The advancement of Ulsan as an artificial intelligence capital has entered a concrete implementation phase with the beginning of 2026. The City of Ulsan has finalized its strategy to develop a sovereign AI cluster, formally positioning itself in the national competition to reshape South Korea’s AI industrial landscape. The Ulsan AI capital initiative is widely viewed as a national strategic project that goes beyond regional development by integrating advanced AI technologies with the country’s core manufacturing industries.
On January 2, Ulsan Mayor Kim Du-gyeom signed the “Ulsan-Style Sovereign AI Cluster Development Plan” as the city’s first official approval of 2026. Sovereign AI refers to an artificial intelligence framework designed to reduce dependence on specific global technologies or corporations while enabling the autonomous protection and utilization of critical industrial data. This concept forms the foundation of Ulsan’s AI capital policy, reflecting a strategic direction aimed at securing both technological competitiveness and data sovereignty.
 [The Korean Today] Exterior view of Ulsan City Hall in Ulsan, South Korea © Photo by Soyoung Jeong |
Alongside the adoption of the development plan, Ulsan officially launched the AI Capital Promotion Headquarters on January 1, 2026. The headquarters functions as a dedicated control tower responsible for AI policy planning, industrial development, regional talent cultivation, data and power infrastructure construction, and the implementation of future-oriented smart city and digital twin technologies. Its establishment is intended to ensure that the advancement of Ulsan as an AI capital moves beyond policy declarations and into full-scale execution.
Ulsan’s decision to pursue the AI capital vision is grounded in clear industrial strengths. The city has long served as a core hub of South Korea’s manufacturing sector, particularly in automobiles, shipbuilding, and energy industries. The vast volume of industrial data accumulated through these sectors is regarded as a valuable asset capable of generating high added value when combined with AI technologies. In addition, Ulsan’s stable power supply infrastructure and strong research capabilities centered around Ulsan National Institute of Science and Technology (UNIST) provide favorable conditions for building a comprehensive AI industrial ecosystem.
The city plans to collaborate with the Ulsan Information Industry Promotion Agency, UNIST, and the Electronics and Telecommunications Research Institute, while forming a consortium that includes major corporations such as SK, Hyundai Motor Company, and HD Hyundai Heavy Industries. Through this cooperation, Ulsan aims to finalize a detailed AI cluster development plan within the year. At the same time, consultations with central government ministries, including the Ministry of Science and ICT, will continue as the city seeks to attract national-level AI hub projects. This approach reflects Ulsan’s intention to expand its AI capital strategy from a local initiative into a core component of South Korea’s national industrial policy.
Ulsan has already been laying the foundation for AI industry development. In 2025, the city secured a large-scale SK–AWS AI data center investment valued at approximately 7 trillion won, establishing one of the largest AI infrastructures in the country. This was followed by the launch of the Ulsan AI Committee and the designation and operation of the nation’s first AI Innovation Center. These developments demonstrate that the advancement of Ulsan as an AI capital is part of a long-term strategic roadmap rather than a short-term initiative.
Experts note that the successful implementation of the Ulsan AI capital strategy could significantly enhance the overall competitiveness of South Korea’s manufacturing sector. The integration of manufacturing data with AI technologies is expected to directly contribute to productivity gains and the creation of new industries. In particular, the concept of sovereign AI is considered highly significant in terms of technological sovereignty and industrial security.
Through the development of a sovereign AI cluster, Ulsan aims to strengthen the global competitiveness of its key industries and gradually complete an AI-centered industrial ecosystem. The transformation of Ulsan from a manufacturing city into an AI-driven city is expected to mark a critical turning point in South Korea’s AI industry landscape.
The advancement of Ulsan as an AI capital is being evaluated as a test case for national industrial strategy rather than merely a regional administrative policy. Attention is now focused on whether Ulsan can establish itself as a central pillar of South Korea’s AI strategy beginning in 2026.
[ By Soyoung Jeong | Ulsan Gangbuk | ulsangangbuk@thekoreantoday.com ]
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