Gangwon Governor Woo Sang-ho Confirms AI Data Center Talks with KT in South Korea

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Gangwon Governor Woo Sang-ho Confirms AI Data Center Talks with KT in South Korea

Updated on Sep 07, 2026, 01:52 PM IST
Written & Edited by Ashish

Gangwon Special Self-Governing Province is in active negotiations with two of South Korea's largest conglomerates to establish artificial intelligence data centers in Wonju and Chuncheon, Governor Woo Sang-ho confirmed on September 7, adding to a broader provincial push to anchor AI infrastructure across four cities with four different major corporate partners.

Separate Talks with KT and Shinsegae Underway

Speaking at a press briefing held in a small conference room on the second floor of the provincial government building in Chuncheon, Governor Woo disclosed that KT is in discussions with the province over the construction of an AI data center in Wonju, while Shinsegae is reviewing a potential investment at the Chuncheon Hydroenergy Convergence Cluster. He described both sets of talks as ongoing and emphasized that neither deal has been finalized.

"Nothing has been confirmed yet," Woo said, while adding that he would provide further updates as developments occur.

The disclosures extend a pattern of corporate engagement that Gangwon Province has been quietly building across its territory. The province is already pursuing AI data center projects with GS in Donghae and with SK in Gangneung, meaning that if all four initiatives proceed, the province would have separate AI data center partnerships with GS, SK, KT, and Shinsegae across four distinct cities.

 

Preference for Domestic-Foreign Joint Investment Model

Governor Woo also used the briefing to articulate the province's investment prioritization framework. He said that the province is currently fielding interest from three categories of investors: joint ventures between domestic conglomerates and overseas big-tech companies, direct investment by foreign firms, and investment funds that have already secured overseas demand.

Among these, Woo said the province intends to prioritize arrangements that pair domestic large corporations with foreign big-tech partners, rather than backing standalone foreign investment. He cited the potential for regional economic spillover as the primary rationale.

"Our goal is not simply to attract data centers," Woo said, "but to build a new industrial ecosystem in which small and medium-sized companies in the Gangwon region can form cooperative relationships."

He elaborated that the participation of domestic conglomerates opens pathways for co-prosperity agreements with Gangwon businesses, employment linkages for local talent, and the possibility that subsidiaries or partner companies of the investing group might make additional investments in the province. These benefits, in his assessment, are less likely to materialize with standalone foreign investment.

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Regulatory Hurdle at Chuncheon Hydroenergy Cluster

The Chuncheon Hydroenergy Convergence Cluster, where Shinsegae is reportedly considering investment, is subject to a procedural constraint that Governor Woo acknowledged is creating friction with prospective large investors.

 

Under current Ministry of Land, Infrastructure and Transport guidelines, when multiple companies express interest in the same site, the selection is made by lottery rather than by competitive evaluation.

Woo said large corporations with investment intentions have found this process burdensome, and the province has been conveying to the ministry a request for a revised system that would allow companies to be selected through a merit-based review of the conditions they offer. The governor confirmed that consultations with the ministry on this regulatory adjustment are ongoing.

Broader Provincial Performance in First Two Months

Governor Woo also used the briefing to review what he characterized as key achievements during his roughly two months in office. He pointed to the reflection of USD 8.26 billion in national government budget proposals for the following year, the expansion of private investment in border regions, and the passage of nine national road and local road projects through preliminary feasibility reviews as standout accomplishments during his initial tenure.

He highlighted a recent investment agreement signed for Goseong, in which private capital of USD 371.45 million was committed to developing the Haesollaria tourism complex, covering an area of approximately 730,000 pyeong. Woo framed the Goseong deal as a symbol of transformation in South Korea's northern border areas, where land long associated with military restrictions is now attracting commercial development.

"The fact that 500 billion won in private capital is entering Goseong, Gangwon, is itself a signal that the future of the border region is changing," he said. "New investment is beginning in areas where military regulations have been lifted."

Four-City Data Center Strategy Taking Shape

The cumulative picture emerging from Governor Woo's remarks is of a province that has positioned itself as a destination for large-scale AI infrastructure investment, with a geographically distributed strategy that assigns different corporate anchors to different cities.

 

Donghae is linked to GS, Gangneung to SK, Wonju to KT, and Chuncheon to Shinsegae, each representing a distinct industrial group with its own potential ecosystem of subsidiaries and supplier networks.

The governor's preference for domestic-foreign joint ventures, rather than purely foreign-led projects, signals an attempt to ensure that the economic benefits of data center development extend beyond the facilities themselves and permeate local supply chains and labor markets.

 

Whether all four of the currently discussed projects will advance to signed agreements remains to be seen, as Woo acknowledged that no final decisions have been reached on either of the newly disclosed negotiations with KT and Shinsegae.

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