800 trillion won will be invested in a new semiconductor fabrication line in the Honam region, a significant commitment to bolstering domestic production as South Korea faces increasing technological competition. Samsung Electronics Chairman Lee Jaeyong and SK Group Chairman Choi Taewon both attended the announcement of the project, an unusual display of cooperation between the two companies. President Lee described the undertaking as “the greatest national and historical achievement I have ever accomplished,” as part of a larger plan to establish a domestic artificial intelligence ecosystem. The initiative also includes an 81 trillion won investment dedicated to building a semiconductor packaging base in the Chungcheong region, strengthening all aspects of the semiconductor supply chain.
This financial commitment surpasses previous regional development projects and aims to address existing capacity limitations around Yongin and Pyeongtaek, areas already nearing their infrastructural limits according to the announcement. President Lee Jae-myung emphasized the need to “secure overwhelming supply capacity in advance through large-scale new investments in the southwestern region,” framing the move as essential for future growth. President Lee described semiconductors, physical AI, and AI data centers as a vision for a fully integrated domestic AI ecosystem. He characterized the moment as a pivotal achievement, stating, “Of all the work I have done so far, I think it is the greatest national and historical achievement.” He further underscored the urgency of the situation, noting that “only speed is the way to survive” in the current global landscape, where nations are engaged in fierce competition to dominate the field of artificial intelligence. The government intends to support these private sector investments, ensuring companies will not suffer losses, and is prepared to facilitate the rapid execution of these projects, which are projected to shape the future of the Republic of Korea for the next two to three decades.
In the so-called era of artificial intelligence competition, major countries, including the United States and China, who want to dominate the new continent of artificial intelligence, are competing for their lives.
The current push for artificial intelligence dominance is manifesting in substantial capital investment, particularly within South Korea’s semiconductor industry and supporting infrastructure. Further investment of 550 trillion won is earmarked for the construction of AI data centers, completing the envisioned ecosystem.
This is why our companies chose the region as the base for three major mega projects” and said, “We will complete the industrial revolution of Korean artificial intelligence led by the region and expanding into the world”.
Beyond simply increasing output, the plan aims to address existing limitations, as President Lee noted the current sites centered on Yongin and Pyeongtaek “are already reaching their limits,” necessitating expansion into new areas. This strategic move is not solely about technological advancement, but also regional equity, with Honam identified as an area now benefiting from substantial investment and renewable energy resources.
We will complete the industrial revolution of Korean artificial intelligence led by the region and expanding into the world”.
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