SK Group to invest 100 trillion won in eastern Jeonnam-Gwangju region

SK Group is set to announce a substantial investment of approximately 100 trillion won (around $72 billion) in the eastern region of Jeonnam-Gwangju, according to Min Hyung-bae, the mayor of the integrated special city. This significant capital injection aims to foster development and address long-standing concerns about regional inequality.

The planned investment follows SK Group's earlier announcement in June of a massive 470 trillion won commitment to the southwestern region. That plan included the construction of two semiconductor fabrication plants valued at 400 trillion won and a 1-gigawatt AI data center costing 70 trillion won.

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The eastern region is often talked about as being neglected, and I hope these issues can be somewhat alleviated.

Mayor Min revealed the eastern region's investment plan during a closed-door meeting with the city council. He expressed a desire to alleviate the perception that the eastern part of the province is being neglected. While the specific details will be disclosed by the company, Min indicated that discussions have been ongoing for some time, and the timing was appropriate for a preliminary announcement to the council.

Interpretations suggest that the AI data center investment will be directed towards the eastern region, while the second semiconductor fabrication plant is slated for the Gwangju Military Airport site. Mayor Min also noted that the Honam semiconductor cluster could potentially expand to include up to nine fabrication plants, exceeding the current plan for four. He further commented on differing electricity supply agreements between companies like SK, Samsung, and the Korea Electric Power Corporation (KEPCO), suggesting a potential division of five plants for one entity and four for another.

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Specific details will be disclosed by the company, but discussions have been ongoing for a long time, and we have been given permission to disclose it today.