Seoul, May 29: South Korean President Lee Jae Myung has announced an ambitious national investment strategy centred on artificial intelligence (AI), semiconductors and advanced manufacturing, marking one of the largest industrial development initiatives in the country’s history. The package includes three major “mega-projects” designed to boost economic growth, promote regional development and reinforce South Korea’s leadership in next-generation technologies.
The centrepiece of the initiative is the proposed establishment of a massive semiconductor manufacturing hub in the country’s southwest, covering the cities of Gwangju and South Jeolla Province. The project aims to diversify South Korea’s chip manufacturing network beyond the Seoul metropolitan region while creating a new high-tech industrial corridor capable of supporting future AI-driven industries.
President Lee formally unveiled the initiative during a national development event attended by senior government officials, business leaders and industry executives. Ministries responsible for industry, science, transport, climate policy and infrastructure presented detailed policy measures intended to support the long-term expansion of the country’s technology ecosystem.
The government said the package combines investments in semiconductor fabrication facilities, AI data centres, robotics and physical AI technologies. Officials believe the integrated approach will strengthen South Korea’s competitiveness as global demand for advanced chips and AI infrastructure continues to rise.
Leading technology companies are expected to play a central role in the investment programme. Samsung Electronics and SK Group are preparing to expand their semiconductor operations under the new initiative, with their respective chairmen, Jay Y. Lee and Chey Tae-won, participating in the launch event. Executives from LG Electronics, HD Hyundai Robotics, Korea Electric Power Corporation and Korea Water Resources Corporation also joined discussions on future collaboration.
Local media estimates suggest total investments linked to the projects could exceed 1,000 trillion won over the coming years, making it one of the country’s largest industrial investment commitments. Although final investment schedules will depend on corporate planning and government approvals, officials believe the initiative could generate significant employment opportunities while stimulating infrastructure development across underdeveloped regions.
Financial markets reacted ahead of the announcement, with construction, engineering and cement companies recording strong gains as investors anticipated large-scale infrastructure spending. Analysts expect new transportation networks, energy facilities, water systems and housing developments to accompany the expansion of advanced manufacturing industries.
The government also outlined comprehensive support measures to ensure the success of the semiconductor cluster. These include improvements in electricity supply, industrial water infrastructure, transportation connectivity, workforce development, research facilities and residential housing for employees. Authorities believe these measures will create a favourable environment for both domestic and international investors.
President Lee defended the decision to establish the new semiconductor hub in the southwest, rejecting criticism that the project was politically motivated. He described the initiative as a long-term national development strategy designed to reduce regional economic disparities while increasing industrial capacity to meet growing global demand for AI technologies.
According to the President, expanding semiconductor production beyond existing industrial centres is necessary to ensure balanced national growth and reduce pressure on infrastructure concentrated around the capital region. He stressed that investment decisions had been made in consultation with industry leaders based on long-term economic and technological considerations.
South Korea remains home to two of the world’s largest memory chip manufacturers, Samsung Electronics and SK Hynix, whose high-bandwidth memory (HBM) chips have become essential components in advanced artificial intelligence systems. As global demand for AI processors continues to accelerate, governments worldwide are increasing investments in semiconductor manufacturing capacity.
Industry experts welcomed the government’s broader vision but cautioned that building world-class semiconductor fabrication facilities requires extensive supporting infrastructure. Stable electricity supplies, abundant industrial water, advanced logistics, specialised suppliers and highly skilled engineers will all be essential to ensure the success of the proposed manufacturing hub.
Opposition lawmakers questioned the timing and location of the project, arguing that the southwest region has traditionally supported the governing party. Critics called for greater transparency regarding project financing, implementation timelines and expected economic returns before construction begins.
Political analysts also noted that the announcement comes as President Lee faces declining approval ratings following several weeks of political debate over economic reforms. However, government officials maintain that the investment programme reflects long-term national priorities rather than short-term political considerations.
Despite differing political views, many economists agree that expanding semiconductor production and AI infrastructure remains vital for South Korea’s future economic competitiveness. The country continues to play a leading role in the global technology supply chain, particularly in memory chips, advanced electronics and digital innovation.
The government expects the mega-projects to attract additional private investment, encourage technological innovation and create thousands of high-skilled jobs over the next decade. If successfully implemented, the initiative could reshape South Korea’s industrial landscape while strengthening its position as one of the world’s leading AI and semiconductor powerhouses.