South Korea’s President Lee Jae Myung announced plans to unveil three major projects aimed at driving the country’s next growth phase, including a new semiconductor hub in the southwest that could attract significant investments from Samsung and SK.
The announcement marks Lee’s most ambitious push yet to align South Korea’s AI and chip ambitions with his pledge to narrow regional disparities and revive economies beyond Seoul. The event will be overseen by President Lee at his office, with ministries covering industry, science, climate, and transport set to outline policy support.
Samsung Electronics and SK are expected to present investment plans for the projects, which include semiconductors, AI data centers, and physical AI, including robotics. The package is projected to exceed 1 trillion won ($651.41 billion) over several years, according to local media reports.
South Korean construction and engineering shares surged in early trade ahead of the announcement, with major cement producers Asia Cement and Hanil Cement jumping by more than 15% and 7%, respectively. However, both chipmakers Samsung Electronics and SK Hynix fell over 4% and 3%, respectively, as global tech stocks took a breather from their recent sharp rally.
The government is set to detail extensive support measures covering power, water, land, infrastructure, workforce training, and housing for the projects. Lee defended the proposed southwest chip hub in several X posts, framing it as a “national survival strategy” to ease regional imbalances and expand capacity for the AI era.
Industry experts say diversifying chip investment beyond Seoul could alleviate infrastructure bottlenecks but warn that building cutting-edge fabs requires vast electricity and water, advanced logistics, deep supplier networks, and highly skilled labor. Opposition politicians have criticized the plan, questioning whether it is politically motivated given that 85% of voters in the region backed Lee in last year’s presidential election.
The announcement comes as Lee’s approval rating has slid for six weeks to 46.5%, according to pollster Realmeter.