Samsung Electronics Co. and SK hynix Inc. will make massive investments reaching 4,700 trillion won domestically based on three major pillars--semiconductors, physical AI, and AI data centers--to foster future industries. To support swift execution, President Lee Jae-myung will personally oversee the investment projects and establish a direct officer in charge within the Blue House.
President Lee said at the “Republic of Korea's Great Leap Forward 3 Mega-Projects National Report Meeting” held at the Blue House Guest House on June 29, “The government and private sector will fully pool their capabilities to build a Korean-style artificial intelligence ecosystem with a sense of speed.” Lee added, “A new history for the Republic of Korea has begun. We are facing an unimaginable new future. Today will be the very first starting point.”
The report meeting was attended by government and Blue House officials, including President Lee, and key business community figures. Lee Jae-yong, chairman of Samsung Electronics, and Chey Tae-won, chairman of SK Group, personally announced investment plans for the 3 Mega-Projects.
The core of the 3 Mega-Projects is to build an AI industry ecosystem by organically combining the “brain” semiconductors, the “intelligent body” physical AI, and the “warehouse of thought” AI data centers, based on abundant electric power.
In particular, emphasis was placed on injecting investment capacity, which expanded following the semiconductor super-boom, into fostering future growth engines, while simultaneously promoting balanced national development and the nationwide expansion of high-tech industries beyond development centered on the capital region.
Among these, the core is the plan to establish a second semiconductor production hub in the Honam region. Considering that semiconductors are a national strategic industry, the strategy is to accelerate the creation of the existing capital region cluster and preemptively respond to the rapidly surging demand for semiconductors driven by the expansion of global AI investments by building a second semiconductor cluster in the southwestern region. On this day, Chairman Lee explicitly mentioned “Gwangju,” and Chairman Chey explicitly mentioned the “southwestern region.” Specific details are expected to be materialized through future announcements of regional investment plans.
In addition, the government disclosed plans to foster the southeastern region and Daegu-Gyeongbuk as innovative hubs for materials, components, and equipment, and to push for the construction of an HBM packaging fab in the Chungcheong region.
On this day, Samsung Electronics announced it would invest a total of 2,655 trillion won to foster future industries, including 2,030 trillion won for the Pyeongtaek and Yongin semiconductor clusters and 625 trillion won for the Honam, Chungcheong, and Yeongnam regions. Regarding the new semiconductor investment, Chairman Lee stated, “Among various regions, we are planning Gwangju as a candidate site, where many incentive supports such as power, water, securing manpower, and various infrastructures are expected.”
SK Group also presented an investment plan worth 2,100 trillion won. Chairman Chey said, “We are planning about 1,000 trillion won for the AI data center project and about 1,100 trillion won for the semiconductor supply expansion project.”
President Lee emphasized that it was a voluntary decision by the corporations. Lee explained, “Honam has been alienated from development for a long time, which conversely became a factor of opportunity. Honam is a place abundant in water and renewable energy. This is also the reason why our companies selected it as a hub.”
Lee subsequently emphasized the role of the government, stating, “Rather than forcing losses and risks on companies to carry out national needs as some worry, the role of the government is precisely to heavily invest government capabilities so that companies do not suffer losses and can invest with a better outlook.” Lee promised, “I will place a direct officer in charge of the projects inside the Blue House and personally take care of the 3 Mega-Projects to ensure rapid execution is achieved.”
President Lee expressed gratitude to Chairman Lee and Chairman Chey, who decided on domestic regional investment instead of overseas, and bowed at a 90-degree angle to greet them, which is unusual for a sitting president.
Lee said, “Representing our citizens, I would like to call the two of you 'national heroes' or 'people's heroes.' It has clearly proven that while companies activities are for profit, they can also operate for the future of the national community.”
Lee added, “They could have gone overseas, which offers better conditions. However, our companies made a difficult decision for our people and the future of Korea.”
