South Korean President Lee Jae Myung has announced a sweeping industrial strategy, pledging more than $1 trillion in investments to secure the nation’s dominance in the global artificial intelligence (AI) and semiconductor sectors.
Describing the initiative as a “great leap forward,” President Lee outlined a plan centred on a “triple axis” of semiconductors, physical AI, and data centres.
Speaking in a televised address on Monday, he emphasised the urgency of the push, stating that the country must secure core AI elements faster than any other nation, reports Al Jazeera.
Under the strategy, the world’s two largest memory chipmakers, Samsung Electronics and SK Hynix, are set to invest $800 trillion won ($52.5b) is expected to be invested in a chip-packaging cluster in the Chungcheong area near Seoul.
The investment includes between 5 trillion and 20 trillion won ($3.2b to $13b) from the city of Gwangju and South Jeolla province. The government also unveiled massive plans for AI data centres, backed by $550 trillion won ($648b).
The initiative aligns with President Lee’s pledge to narrow regional disparities and revive economies outside the Seoul metropolitan area.
However, the plan has faced criticism from the opposition, who argue that locating a second semiconductor cluster in Honam, a traditional stronghold for the liberal Democratic Party, is driven by regional politics rather than industrial logic.
Critics have accused the government of pressuring chipmakers to invest in the region to bolster political support.
President Lee defended the proposed southwestern chip hub in a series of social media posts, rejecting claims of favouritism. He noted that the region was chosen in part to utilise rich, untapped power resources available there.
Despite receiving 85 per cent of the vote in that region during last year’s election, Lee maintains the strategy is focused on securing South Korea’s lead in the AI boom.
