South Korea launched three flagship megaprojects on Monday targeting semiconductors, AI data centers, and physical AI development. President Lee Jae Myung hosted Samsung and SK Group chairs alongside cabinet ministers at Cheong Wa Dae to announce the plans. Furthermore, Lee pledged to personally oversee implementation and ensure swift execution across all three initiatives. Consequently, the announcement signals South Korea’s most ambitious industrial investment push in recent decades.
The financial scale of the megaprojects is extraordinary by any measure. The government plans 800 trillion won for a new semiconductor belt in the southwest region. Additionally, 81 trillion won targets a semiconductor packaging hub across the Chungcheong region. Moreover, AI data center investments nationwide will exceed 1 quadrillion won in total, targeting 18.4 gigawatts of capacity by 2035.
Samsung Electronics Chair Lee Jae-yong and SK Group Chair Chey Tae-won both outlined their companies’ respective regional investment commitments at the event. The southwest cluster centers on Gwangju and South Jeolla Province, which merge into a single special city on July 1. Meanwhile, the Chungcheong packaging hub targets high-bandwidth memory production in Onyang, Cheonan, and Cheongju specifically. Together, these regional anchors aim to build industrial capacity well beyond the historically dominant Seoul metropolitan corridor.
President Lee framed the initiative as an urgent national survival strategy requiring maximum speed. He stressed South Korea must secure core AI elements faster than competing nations to remain globally relevant. Additionally, Lee emphasized that the government would mobilize full capacity so companies can invest profitably without absorbing undue risk. He described the next three years as a golden window for Korea to establish global physical AI leadership.
However, the megaprojects quickly drew sharp political opposition from the People Power Party. Opposition floor leader Rep. Jeong Jeom-sig condemned the southwest semiconductor cluster as damaging political intervention in private industry decisions. In response, the ruling Democratic Party warned of legal action against what it called malicious sabotage of national growth. Going forward, the political battle over these megaprojects may complicate implementation timelines considerably.
