South Korea Plans 1,500 Trillion Won Investment in Regional Development

Samsung Electronics and SK Hynix announced plans to establish semiconductor production facilities in Jeonnam and Gwangju during a national briefing on mega projects at the Blue House. The images show potential sites for the semiconductor factories, including the Gwangju military airport area and the Solar City site in Haenam, Jeonnam. [Photo=Yonhap]

On June 29, the Blue House announced a regional investment plan totaling approximately 1,500 trillion won, covering the Honam and Chungcheong regions.

Kang Yu-jeong, the chief spokesperson for the Blue House, shared details of the investment plan following a briefing led by President Lee Jae-myung on the "Three Mega Projects for Korea's Great Leap Forward."

The 1,500 trillion won investment is based on data from Samsung Electronics and SK Hynix, with 896 trillion won allocated for the Honam region, 392 trillion won for Chungcheong, and 270 trillion won for Yeongnam.

In detail, the Honam region will see investments of 800 trillion won for the construction of four semiconductor fabs, 1 trillion won for packaging, 87 trillion won for artificial intelligence data centers (AIDC), and 8 trillion won for other smart appliances and energy projects.

In the Chungcheong region, investments will include 156 trillion won for semiconductors, 150 trillion won for AIDC, and 86 trillion won for displays, batteries, and biotechnology.

The Yeongnam region plans to invest 146 trillion won in AIDC, 13 trillion won in physical AI, and 111 trillion won in automotive, shipbuilding, aerospace, and energy sectors. However, the investment figures for Yeongnam are still being finalized and may change.

On the same day, the government announced a comprehensive domestic investment plan amounting to 4,755 trillion won, focusing on semiconductors, physical AI, and data centers.

Samsung Electronics plans to invest 425 trillion won in the Honam region, 140 trillion won in Chungcheong, and 60 trillion won in Yeongnam, including investments in AI semiconductors, robotics, batteries, IT components and materials, and carbon-free energy.

SK Hynix revealed a 2,100 trillion won investment plan, with 1,100 trillion won allocated for semiconductor supply expansion and 1,000 trillion won for AIDC. The company aims to invest an average of over 100 trillion won domestically each year for the next decade.

During the briefing, President Lee stated, "Korea is at a turning point for a new great leap forward. This year must mark the beginning of an irreplaceable dream for Korea, and the key task is to leap forward as a leading industrial nation."

* This article has been translated by AI.