The investment will encompass AI data centers, batteries, and display technologies and will be disclosed during a meeting with President Lee Jae Myung at the presidential office, according to the Maeil Business Newspaper, which did not name its sources.
Top executives from major companies, including Samsung Electronics and its competitor SK Hynix, will participate in the meeting to present investment strategies aimed at regions outside of Seoul and its surrounding areas, as indicated in the report.
The timing of the investment rollout was not mentioned in the report.
This initiative appears focused on decentralizing South Korea’s AI expansion into a comprehensive national growth engine, alleviating infrastructure challenges while catalyzing job creation, innovation centers, and next-generation manufacturing in underserved areas.
The concentration of chipmakers’ production in regions around Seoul has faced political scrutiny and has been heightened by Lee’s push for more balanced regional development.
Lee held separate discussions with the leaders of Samsung and SK this week, according to media reports.
The presidential office stated that it will share details on Monday regarding “three mega-projects” aimed at propelling national progress, although the specifics of these projects remain unconfirmed.
Samsung and SK Hynix have opted not to comment.
Samsung Group stands as South Korea’s largest conglomerate, featuring Samsung Electronics as its flagship, alongside affiliates like battery manufacturer Samsung SDI and IT services provider Samsung SDS.
A presidential adviser mentioned this week that discussions are ongoing with Samsung Electronics and SK Hynix regarding the next stage of significant investments in semiconductor production facilities, prompted by the rapid growth in AI-related demand for chips.
Policy adviser Kim Yong-beom stated on Wednesday that SK Hynix and Samsung may need to expedite projects initially planned for the 2040s into the mid-2030s due to the unexpected surge in AI-driven memory demand, which has led to a lack of available space, power, or water for future expansion in the capital region.
REGIONAL DEVELOPMENT
The political landscape concerning semiconductor investments gained traction ahead of South Korea’s local elections on June 3, with discussions intensifying over the allocation of the next funding wave as Lee’s administration prioritizes AI in its economic agenda.
Lee’s approval rating has dropped to 51%, marking the lowest point since his inauguration in June of the previous year, as reported by Gallup Korea on Friday.
Candidates across various regions have been actively promoting their areas as potential semiconductor hubs, aiming to attract major players like Samsung and SK Hynix. Proposals have ranged from a 500 trillion won chip complex in the southwest to expanded clusters in Gyeonggi, Chungcheong, and Gangwon, according to local media, highlighting a nationwide competition for strategic technology investments.
