South Korea to Launch Major AI and Chip Investment Drive

Seoul – South Korea is poised to unveil three "mega-projects" aimed at stimulating its next phase of economic growth, with a significant semiconductor hub planned for the country's southwest. Local media reports suggest these initiatives could attract investments totaling hundreds of billions of dollars from major players like Samsung and SK over several years.

This ambitious push by President Lee Jae Myung seeks to align South Korea's AI and chip ambitions with his pledge to reduce regional economic disparities. The announcement, described as a national "great leap," will involve ministries of industry, science, climate, and transport outlining policy support. Key business leaders, including the chairmen of Samsung Electronics and SK, are expected to attend, alongside representatives from LG Electronics, HD Hyundai Robotics, and others.

The package will encompass semiconductors, AI data centers, and physical AI applications such as robotics. The planned chip cluster in the underdeveloped southwest, including Gwangju and South Jeolla province, could see investments exceeding 1,000 trillion won (approximately $651.41 billion). Anticipation of this massive regional infrastructure development drove up construction and engineering shares in early trade.

President Lee has defended the southwest chip hub proposal, framing it as a "national survival strategy" to address regional imbalances and expand capacity for the AI era, rather than a special favor for a particular region. The government is also preparing comprehensive support measures covering essential utilities, land, infrastructure, workforce training, and housing to ensure the success of these "mega-projects."

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The creation of a semiconductor industrial ecosystem in (the southwest) is not a special favour for a particular region. It is the additional creation