Kim Jeong-kwan, Minister of Trade, Industry and Energy, announced these investment plans during the "Korea's Great Leap: National Report Meeting on Mega Projects" held at the Blue House on June 29. The government plans to combine large-scale private investments with policy support to build an industrial ecosystem for the AI era.
◆Strategic Investment in Semiconductors: 800 Trillion Won for Southwestern Region and 81 Trillion Won for Chungcheong Region
The government will expedite the development of the Yongin National Industrial Complex and general industrial complexes to double the capital region's memory production capacity within five years.
Additionally, the southwestern region will see a total of 800 trillion won in private investments to establish four memory fabs along with a supporting ecosystem of partners and workforce, creating a "second semiconductor production hub." In the Chungcheong region, 81 trillion won will be invested to foster an advanced packaging hub centered on high-bandwidth memory (HBM).
The southeastern and Daegu-Gyeongbuk regions will be developed as innovation hubs for materials, parts, and equipment to strengthen supply chain competitiveness. This plan aims to expand the semiconductor production base, currently concentrated in the capital region, across the country.
Minister Kim stated, "A single hub in the capital region cannot meet the surging demand for semiconductors, and there are limitations in securing power and water resources. We will establish the southwestern region as a second semiconductor production base and develop the Chungcheong region as an advanced packaging hub."
He added, "We will drastically shorten the approval and construction periods to quickly expand production capacity, thereby maintaining overwhelming market dominance and a competitive edge in memory semiconductors."
Significant investments will also be made to secure future technologies. The government plans to invest over 30 trillion won over the next 15 years to support research and development (R&D) for next-generation memory, on-device AI semiconductors, and defense semiconductors, covering the entire cycle from research to design, verification, and manufacturing. A special committee for strengthening semiconductor competitiveness, chaired by the president, along with a special account and an innovation support team from the Ministry of Trade, Industry and Energy, will be established to manage these projects effectively.
Minister Kim emphasized, "To become an irreplaceable semiconductor powerhouse, we must win in speed, location, and leadership, and comprehensive support is essential for this endeavor."
◆Intensive Development of AI Infrastructure: Concurrent Growth of Robotics and Data Centers
Following semiconductors, the government is accelerating the establishment of an AI industrial ecosystem. It aims to cultivate physical AI as a new growth axis, targeting the development of three global leaders in AI robotics and one global leader in physical AI.
To achieve this, the government will actively promote the Manufacturing AI Transformation (M.AX). It plans to develop specialized AI robots for various industries, distributing over 1,000 units annually to industrial sites, and establish data factories for ten different sectors to secure data for robot learning. R&D investments will also be expanded for key components such as actuators, robotic hands, and sensors, with plans to train 10,000 specialized personnel over the next five years.
In Saemangeum, a robotics foundry and parts cluster will be established in connection with investments from Hyundai Motor Group, and the government will support the transition of automotive and electronics parts companies in the Daegu-Gyeongbuk region to the robotics industry. The next three years are viewed as a golden opportunity for securing physical AI competitiveness, and the government plans to initiate the development of an independent physical AI foundation model and large-scale synthetic data.
The establishment of AI data centers will also be pursued on a large scale. The government is collaborating with SK, GS, and Naver to build a total of 8.4 GW of AI data centers in the first phase. These three companies are expected to invest approximately 550 trillion won, including attracting additional investments. Following this, SK plans to expand the 5 GW data center established in the first phase to 15 GW by 2035, increasing the total AI data center capacity to 18.4 GW.
The government aims to enhance the competitiveness of domestic AI semiconductors (NPU) and power and cooling solutions, while also creating an AI data center cluster with large-scale testing facilities to foster the related industrial ecosystem.
Minister Kim concluded, "To win the semiconductor war, a collective effort from the government, businesses, universities, and local governments is essential. We will ensure a new leap for South Korea's industry in the AI era."
* This article has been translated by AI.
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