South Korea has unveiled a sweeping industrial strategy centred on semiconductor manufacturing, artificial intelligence and data infrastructure, with plans involving more than $1 trillion in investments over the coming years.
President Lee Jae Myung presented the initiative as a race to strengthen the country's leadership in the AI era while expanding advanced industries beyond the Seoul metropolitan area.
Announced alongside the heads of Samsung Electronics and SK Hynix, the strategy forms part of the government's "Three Mega Projects" focused on semiconductor production, AI data centres and robotics technology.
The investment programme includes 800 trillion won ($518 billion) from Samsung Electronics, SK Hynix and suppliers to establish two new semiconductor fabrication sites each in South Korea's southwest.
Regional authorities in Gwangju and South Jeolla Province are expected to contribute between 5 trillion and 20 trillion won toward the projects.
An additional 81 trillion won ($52.5 billion) is planned for a semiconductor packaging cluster in the Chungcheong region near Seoul.
The government also announced AI data centre projects backed by 550 trillion won ($356 billion) in investments from SK Group, GS Group and Naver.
Science Minister Bae Kyung-hoon said an additional 10-gigawatt AI data centre is planned by 2035, with total investments exceeding 1,000 trillion won ($648 billion).
"We must secure the core elements of AI faster than any other country," Lee said.
Lee said the strategy is intended to revive regional economies and address the long-term concentration of industry around Seoul.
He described the effort as necessary to promote sustainable and inclusive growth while reducing regional disparities.
The president also argued that the southwest offers significant untapped power resources suitable for large-scale semiconductor production.
Opposition parties criticised the decision to establish a major semiconductor cluster in the southwest, alleging the location reflects political considerations rather than commercial logic.
The government rejected those claims, with Lee defending the project and maintaining that the investment plan is designed to strengthen South Korea's long-term competitiveness in semiconductors and artificial intelligence while supporting broader regional economic development.