On July 3, during the "Yeongnam Advanced Industry Development Vision National Report Meeting" held at Gyeongsang National University in Jinju, the government announced that major companies, including Hanwha, Hyundai Motor, Samsung, SK, Doosan, and LG, plan to invest a total of 312 trillion won in the Yeongnam region.
Gu Yoon-cheol, Deputy Prime Minister and Minister of Economy and Finance, stated, "We will resolve on-site challenges through a support package involving tax, finance, and fiscal measures," adding that the government is considering designating small modular reactors (SMR) as a national strategic technology and establishing a special subsidy for the 5 Engines and 3 Special Growth Drivers.
By company, SK Group plans to invest approximately 140 trillion won to establish a 2-gigawatt (GW) AI data center in the Yeongnam region, including partnerships with overseas operators and capital attraction. Samsung will invest 60 trillion won in humanoid robots and next-generation battery production lines, while Hanwha will allocate 55 trillion won for satellites, launch vehicles, and AI data centers for space and defense. Hyundai Motor Group plans to invest 42 trillion won in AI-based autonomous driving, future mobility, and manufacturing AI. Doosan will invest 5.1 trillion won in SMR and gas turbines, and LG will invest 9.4 trillion won in semiconductor substrates, displays, and home appliance R&D.
To support these investments, the government also announced the "Yeongnam Advanced Industry Development Vision." This initiative aims to transform the region into a hub for next-generation semiconductors and innovation in materials, parts, and equipment, moving away from the capital-centric industrial structure. Plans include establishing large-scale AI data centers in the region, including Ulsan, and creating a super-innovation belt connecting Gumi, Pohang, Daegu, and Changwon.
The government also revealed strategies for fostering the aerospace industry. It plans to develop a "space hub" centered in Sacheon, Gyeongnam, where the Korea Aerospace Administration is located, and to build a coastal aerospace industrial belt to cultivate a private-sector-driven space industry ecosystem. Key projects include establishing a Korean low-orbit satellite communication network and launching a privately-led lunar lander by 2030.
To support corporate investments, the government plans to expand tax incentives, including the establishment of a domestic production tax credit and the review of SMR national strategic technology designation. It will also strengthen financial support for large-scale research and development (R&D) and facility investments. Additionally, the government aims to promote regulatory and financial support through the creation of advanced national industrial complexes in the Yeongnam region, designation of mega-special zones, and establishment of investment corporations.
During the event, major companies, relevant ministries, and local governments from Busan, Daegu, Ulsan, Gyeongbuk, and Gyeongnam signed memorandums of understanding (MOUs) to foster investment in the Yeongnam advanced industry sector. The government stated that these efforts will help create a future industrial ecosystem in semiconductors, AI, aerospace, defense, and energy, while also revitalizing the local economy and securing national growth momentum.
* This article has been translated by AI.
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