1. [para. 1][para. 2][para. 3] South Korean President Lee Jae-myung unveiled his administration’s first major industrial strategy, positioning semiconductors, physical AI, and AI data centers as three strategic pillars to serve as the country’s growth engines for the next two to three decades. He stated that the government will concentrate resources on making South Korea an irreplaceable industrial powerhouse with a super-gap competitive advantage, creating a virtuous cycle where factory-floor data feeds into AI data centers and then back into manufacturing and robotics.
2. [para. 4][para. 5][para. 6] To accelerate implementation, Lee appointed a direct overseer within the presidential office to supervise the three projects. Major companies including Samsung Electronics, SK Hynix, SK Group, GS Group, Naver, and Hyundai Motor Group will launch massive investments across these domains. In semiconductors, the government introduced a 3S+1F strategy—speed, stronghold, spearhead, plus full support—focusing on building a production base in the southwestern Honam region while accelerating capacity expansion in the capital region.
3. [para. 7][para. 8][para. 9] Under the semiconductor blueprint, Samsung and SK Hynix will collectively invest 800 trillion won ($520 billion) in the southwest to build two front-end memory chip fabrication plants each, establishing the country’s second semiconductor hub. This investment record exceeds the entire 2026 national budget. Presidential Chief of Staff Kang Hoon-sik stated the government aims to complete these fabs within the current administration’s term, drawing on Japan’s Kumamoto experience. Concurrently, Samsung will shift its Pyeongtaek P5 plant construction to simultaneous phases, completing three to four years early, while SK Hynix’s Yongin cluster is slated for completion in 2033 (12 years early) and Samsung’s park in 2040 (seven years early).
4. [para. 10][para. 11][para. 12] Trade, Industry and Energy Minister Kim Jeong-gwan said South Korea plans to double memory chip production capacity in the capital region over five years, aiming to turn the entire country into a semiconductor cluster. Additionally, Samsung and SK Hynix will invest about 81 trillion won in the Chungcheong region for a high-bandwidth memory packaging base, and develop materials, components, and equipment industries nationwide. For physical AI, the government proposed humanoid robot industrial bases in Saemangeum and Daegu-Gyeongbuk regions, aiming to become one of the world’s top three AI robotics powers.
5. [para. 13][para. 14] Hyundai Motor will build a robot foundry and component park in Saemangeum and support component makers in transitioning to robotics. The government plans to deploy over 1,000 industry-specific robots annually. On AI infrastructure, SK, GS, and Naver will invest roughly 550 trillion won by 2029 to build AI data centers totaling 8.4 gigawatts. By 2035, the government plans to add another 10 gigawatts, bringing national capacity to 18.4 gigawatts with total investment exceeding 1,000 trillion won.
6. [para. 15][para. 16][para. 17] Samsung Chairman Lee Jae-yong and SK Chairman Chey Tae-won attended the briefing, outlining their corporate plans. Lee said Samsung is evaluating Gwangju for a new industrial park. Chey stated SK plans a new semiconductor cluster in the southwest to meet AI-driven memory demand. President Lee later bowed in gratitude, calling the two chairmen national heroes and noting that enterprises bear responsibility for the national community’s future.
7. [para. 18][para. 19] Aligning with the three super projects, Samsung disclosed plans to invest 2,450 trillion won domestically between 2026 and 2040 (2,100 trillion won for semiconductor clusters). SK announced a long-term investment of about 2,100 trillion won for semiconductors and AI data centers. The projects reflect President Lee’s industrial policy, as he has repeatedly identified AI and semiconductors as growth engines since taking office in 2025, targeting top-three AI robotics power and leading physical AI nation by 2030.
8. [para. 20][para. 21][para. 22] South Korean media analyzed that the announced investment figures and schedules are largely mid- to long-term plans, facing execution challenges in power supply, industrial water, land development, and approvals. Kang clarified at a press conference that the massive corporate investments stem from AI-driven shifts in chip demand, not administrative pressure. He noted the industry now agrees AI will persistently drive chip demand, so South Korea must expand capacity ahead of time to avoid ceding market share to rivals like Micron.
AI generated, for reference only
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