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🇰🇷 South Korea /Technology

South Korea to Fast-Track AI, Semiconductor Mega-Projects and Regional Growth Engines

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • South Korean Deputy Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, announced plans to rapidly advance three major projects: semiconductors, data centers, and physical AI.
  • The government will also actively discover and announce regional growth engines, categorized as '5 hubs and 3 special zones,' to foster growth outside the Seoul metropolitan area.
  • Despite strong first-half exports, the nation faces challenges from high exchange rates and inflation, prompting government measures to support livelihoods.

South Korea is accelerating its 'three mega-projects' in semiconductors, data centers, and physical AI, aiming to build a "super-gap" nation. Deputy Prime Minister Koo Yun-cheol emphasized that the key to global competitiveness lies not in the saturated capital region but in the provinces.

To build a super-gap Korea, we will push forward the 'three mega-projects' at full speed, while also discovering and developing regional growth engines that maximize the characteristics and capabilities of each region.

— Koo Yun-cheolDeputy Prime Minister and Minister of Economy and Finance, announcing the government's economic strategy.

The government plans to identify regional growth engines, dubbed '5 hubs and 3 special zones,' that leverage local characteristics and capabilities. These selected regions will receive comprehensive support packages including financial, monetary, tax, regulatory, and talent incentives. The government is gathering input from local governments and businesses to finalize and announce these growth engines soon.

The key to leading the global all-out war for a super-gap lies not in the saturated capital region, but in the provinces.

— Koo Yun-cheolExplaining the rationale behind focusing on regional growth engines.

While acknowledging the successful navigation of challenges like the Middle East conflict, Koo noted persistent difficulties such as high exchange rates and inflation. He highlighted a record-breaking first-half export performance, with shipments reaching $496.7 billion, a 48.4% increase. June alone saw exports surpass $100 billion for the first time in history, making South Korea the fourth country globally to achieve this monthly milestone.

The government will select growth engines that leverage the characteristics and potential of each of the 5 hubs and 3 special zones, and provide comprehensive support including finance, currency, tax, regulation, and talent.

— Koo Yun-cheolDetailing the support measures for regional development.

However, the nation continues to grapple with currency market volatility, a 3.2% rise in consumer prices in June, and a slowdown in employment. The government is committed to swiftly implementing measures to support people's livelihoods and address these economic pressures, including rising prices, employment concerns, and fluctuations in exchange rates and interest rates.

We are successfully overcoming the waves of the Middle East war, but difficulties such as high exchange rates and high prices continue.

— Koo Yun-cheolAssessing the current economic situation.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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