South Korea announces more than $1 trillion AI, chip investment drive | Technology News

South Korean President Lee Jae Myung has announced an ambitious industrial strategy to secure the country’s leadership in the AI boom, framing it as a race against time.
The initiative focuses on three areas: semiconductors, physical AI, and data centres.
Samsung Electronics and SK Hynix will invest 800 trillion won ($518bn) jointly over several years to build new chip fabrication sites, with regional governments also contributing significant funds.
The plan includes building AI data centres in the southwest region, with major funding commitments from conglomerates SK Group, GS Group, and Naver.
The strategy aims to not only align South Korea’s AI and chip ambitions but also to narrow regional economic disparities and support local economies outside the Seoul metropolitan area.
Critics argue that the strategy’s focus on the Honam region, a political stronghold of the ruling party, reflects more regional political interests rather than industrial logic.
The president defended the proposed investments in the region, citing additional power resources available there and addressing criticisms on social media.

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