President Lee Launches Advanced Industry Edge and Balanced Development... Samsung and SK to Invest 1,558 Trillion Won in Non-Capital Regions

Samsung and SK Announce 4,755 Trillion Won in Long-Term Domestic Investment
Industry Map Reshaped: Semiconductors in Honam, HBM in Chungcheong, Physical AI in Yeongnam
Lee: "A New Chapter in Korea's History Begins" ... 90-Degree Bow to Lee Jay-y

President Lee Jae-myung has officially declared the simultaneous pursuit of advanced industrial super-gap and balanced regional development through the "Three Major Mega Projects for Korea’s Great Leap Forward," centered on semiconductors, artificial intelligence (AI), and physical AI. The total amount of domestic long-term investment announced by Samsung and SK reaches 4,755 trillion won. Of this, 1,558 trillion won will be newly allocated to non-metropolitan areas such as Honam, Chungcheong, and Yeongnam. This marks the beginning of the Lee Jae-myung administration’s second-year economic strategy, signaling an expansion of the semiconductor and AI industry map—previously concentrated in the Seoul metropolitan area—into a nationwide advanced industry belt.

President Lee Jae-myung, Samsung Electronics Chairman Lee Jae-yong, and SK Group Chairman Chey Tae-won are taking a commemorative photo after announcing corporate investment plans at the National Report on the Three Major Mega Projects held at the Blue House on June 29, 2026. Photo by Yonhap News

On June 29, at the Blue House State Guest House, President Lee presided over the "National Report on the Three Major Mega Projects for Korea’s Great Leap Forward," stating, "A new chapter in Korea’s history has begun," and "Today will be the starting point." President Lee presented semiconductors, AI data centers, and physical AI as the three main pillars of the leap forward, emphasizing, "This is the greatest achievement for the nation and history among all the work I have accomplished so far."

The core of this announcement is large-scale investment in non-metropolitan regions. According to figures released by the Blue House, the investment amount by region is 896 trillion won for Honam, 392 trillion won for Chungcheong, and 270 trillion won for Yeongnam. In Honam, Samsung Electronics and SK hynix each plan to establish two memory semiconductor fabs (factories), for a total of four, amounting to an 800 trillion won investment. Chungcheong will serve as a hub for high-bandwidth memory (HBM) and advanced packaging and post-processing, while Yeongnam will be developed as a center for the physical AI ecosystem, including AI data centers, robotics, batteries, shipbuilding, and materials, parts, and equipment industries.

Samsung Electronics Chairman Lee Jae-yong, during the investment announcement, stressed that demand for semiconductors in the AI era is overwhelming existing production capacity. He stated, "The technology paradigm is changing at an unimaginable speed due to AI," adding, "The market sees that we are falling short in meeting the explosive demand." He also mentioned that the investment schedule for the Yongin National Industrial Complex is being accelerated, following Giheung, Hwaseong, and Pyeongtaek, saying, "As the President said, it’s a race against time."

Gwangju was specifically mentioned as a candidate site for Samsung’s new semiconductor complex. Chairman Lee stated, "We are considering Gwangju as a candidate site, as we expect significant support in terms of power, water, workforce, and other infrastructure incentives." Investments in HBM and advanced packaging will be concentrated in the Chungcheong area, such as Cheonan and Onyang, while internal Samsung AI data centers and robotics investments will focus on Gumi, Gyeongbuk. Furthermore, he presented plans for region-specific investments: all-solid-state batteries and energy storage system (ESS) batteries in Ulsan, next-generation shipbuilding in Geoje, package substrates in Busan, and bio-business in Songdo, Incheon. Chairman Lee said, "I am confident that by joining forces among companies, the government, and local governments, we can make Korea irreplaceable."

SK Group Chairman Chey Tae-won announced plans to invest an average of more than 100 trillion won annually over the next 10 years in regional AI data centers. He posed the question, "Why should Korea focus on AI?" and continued, "By rapidly building large-scale AI data centers, we will export intelligence instead of products and build a domestic 'intelligence market.'" Centered around SK Telecom, SK Group plans to establish AI data centers with a total capacity of 15GW across various regions nationwide. The plan is to quickly build 5GW in regions with available power and land in the first phase, and sequentially expand to 10GW in the second phase.

Chairman Chey also noted that the surge in AI demand will further exacerbate the memory semiconductor supply shortage and announced that the completion date for the Yongin cluster will be moved up by 12 years, from 2045 to 2033. Approximately 600 trillion won will be invested in the Yongin DRAM production facility and about 100 trillion won in the Cheongju NAND production facility ahead of schedule. In addition, about 400 trillion won will be invested in the southwestern region to establish a new semiconductor cluster.

The total domestic long-term investment announced separately by Samsung and SK is 2,655 trillion won and 2,100 trillion won, respectively, amounting to 4,755 trillion won in total. However, this figure includes existing metropolitan area investments such as the Yongin cluster and long-term investment plans. The non-metropolitan investments in Honam, Chungcheong, and Yeongnam, which are emphasized for their balanced development effect, are tentatively tallied at 1,558 trillion won (excluding other regions such as Gangwon). The strategy is to complete existing metropolitan hubs early while expanding new growth axes to Honam, Chungcheong, and Yeongnam.

President Lee Jae-myung is greeting Samsung Electronics Chairman Lee Jae-yong after announcing the corporate investment plan at the National Report on the Three Major Mega Projects held at the Blue House on the 29th. On the left is SK Group Chairman Chey Tae-won. June 29, 2026, Yonhap News Agency.

President Lee Jae-myung is greeting SK Group Chairman Chey Tae-won after presenting the company's investment plan at the National Report Meeting on the Three Major Mega Projects held at the Blue House on the 29th. On the right is Samsung Electronics Chairman Lee Jae-yong. June 29, 2026, Yonhap News. Photo by Yonhap News

President Lee pledged full support in response to the companies’ investment decisions. He stated, "I will personally take responsibility for a prompt one-stop administrative process," and "A dedicated team within the Blue House will handle only these matters until the end of my term." This reflects his intention to manage bottlenecks in major projects—such as power, water, living conditions, and permitting—under the direct control of the Blue House.

Kang Hoon-sik, chief of staff to the president, said in a follow-up briefing, "The so-called southern limit line for semiconductors has been broken by this investment," and "It has been proven that large-scale advanced industries are feasible in the provinces." Kang described this project as the "government’s signature initiative" and said, "It will serve as the starting signal for regional investment." In particular, regarding the semiconductor cluster in the southwest, he announced that the usual nine-year period for infrastructure development would be shortened, aiming for completion within this administration’s term.

The highlight of the national report meeting was President Lee’s "90-degree bow." After the companies’ investment plans were announced, President Lee called Chairman Lee and Chairman Chey to the stage and said, "I would like to call these two national heroes and heroes of the people." He continued, "On behalf of the people, I wish to express my gratitude for making this difficult national decision for the future of the people and Korea," and bowed deeply. Chief Kang later explained that the president had considered a full traditional bow, but aides persuaded him otherwise, and that the 90-degree bow was a sincere expression of thanks for the companies’ decisions.

President Lee Jae-myung is speaking at the National Report Meeting on the Three Major Mega Projects held at the Blue House on June 29, 2026. Photo by Yonhap News

With the regional investment blueprint now presented, attention is turning to the speed of implementation. Semiconductor fabs require power, water, sites, workforce, and a partner ecosystem all at once. AI data centers also cannot avoid issues related to power transmission networks, cooling infrastructure, and regional acceptance. Depending on how much the Blue House’s direct management system alleviates bottlenecks, the "Super-Gap Korea" plan could remain just a rosy blueprint or become a turning point that transforms the metropolitan-centric industrial map.

This content was produced with the assistance of AI translation services.