South Korea is gearing up to introduce three major initiatives aimed at propelling the nation into its next growth phase, including a significant semiconductor hub in the southwestern region. Local media have reported that this initiative may draw investments from industry giants like Samsung and SK, potentially exceeding $650 billion over several years.
This development marks the most ambitious effort by President Lee Jae Myung to align South Korea's aspirations in artificial intelligence and semiconductor technology with his goal of reducing regional inequalities and invigorating economies outside the bustling Seoul area.
The announcement is anticipated to take place around 0500 GMT, with President Lee presiding over the event, which will highlight a national vision termed as a "great leap." Various government ministries related to industry, science, climate, and transportation are expected to reveal supportive policies.
Samsung Electronics and SK are set to share their investment strategies, with their leaders—Jay Y. Lee and Chey Tae-won—reported to be in attendance alongside representatives from other firms, including LG Electronics, HD Hyundai Robotics, Korea Electric Power Corporation, and Korea Water Resources Corporation.
The investment package will encompass sectors such as semiconductors, artificial intelligence data centers, and advanced technologies, including robotics. President Lee's social media updates strongly indicate plans for a new chip cluster in the less developed southwestern regions, including Gwangju and South Jeolla Province.
Local reports suggest that the planned investments could surpass 1,000 trillion won (approximately $651.41 billion) in the coming years, causing a surge in South Korean construction and engineering stocks ahead of the announcement as investors anticipate significant regional infrastructure growth.
In defense of the proposed chip hub, President Lee has taken to social media to address criticisms of regional favoritism, asserting that the initiative is a "national survival strategy" aimed at mitigating regional disparities and bolstering capabilities for the AI age. He emphasized that establishing a semiconductor industrial ecosystem in the southwest does not cater to a specific political stronghold, but rather serves as a strategic decision backed by government support.
Experts in the industry acknowledge that diversifying chip production beyond Seoul could alleviate existing infrastructure challenges. However, they caution that constructing state-of-the-art fabrication facilities requires extensive resources, including electricity, water, advanced logistics, robust supplier networks, and a highly skilled workforce—factors that may not be rapidly developed in a new region to satisfy the soaring demand for AI technologies.
The proposal faces skepticism from opposition politicians, who question whether the initiative is politically motivated, particularly considering that 85% of voters in the southwest supported Lee during last year's presidential election.
This announcement coincides with a drop in Lee's approval ratings, which have fallen to 46.5% over the past six weeks, as reported by Realmeter.
