What Comes After Semiconductors?... Kim Yongbum: "Nurture 7 'Seeds' Into New 'Megas'"

Emphasizing the Fostering of Seven Key Areas, Including SMR, Nuclear Fusion, Renewable Energy, Quantum, and Advanced Bio
"Mega nurtures SEED, and SEED grows into a new Mega—Creating a Virtuous Industrial Cycle"
President Lee Highlights '7 SEED'

Kim Yongbum, the policy chief at the Blue House, emphasized the need to reinvest the capital and accumulated technology generated by Korea’s current leading industries—such as semiconductors and artificial intelligence (AI)—into next-generation sectors, thereby creating a virtuous cycle where today’s mega-industries nurture the mega-industries of tomorrow. His vision is to not only further develop globally competitive fields like semiconductors and AI, but also to plant the “seeds” (SEED) of future industries—such as small modular reactors (SMRs), nuclear fusion, quantum technology, and advanced biotechnology—starting now.

Kim Yongbum, the policy chief, is listening to participants' remarks at the State Council meeting presided over by President Lee Jae-myung at the Blue House on the 4th. From the left: Lim Kigun, Director of the Office for Government Policy Coordination; Kim Yongbum, policy chief; and Choi Dongsuk, Director of the Ministry of Personnel Innovation. August 4, 2026. Photo by Yonhap News.

On August 12, Kim outlined this approach in a Facebook post titled “3 Mega and 7 SEED,” stating, “Mega nurtures SEED, and SEED grows into a new Mega. The core of the 3 Mega and 7 SEED strategy lies in this cycle.” President Lee Jae-myung, after spearheading the three major mega-projects—semiconductors, physical AI, and AI data centers—presided over the “7 SEED Report” on the same day to discuss seven emerging fields that will be cultivated as future industries.

Kim assessed that the current competitiveness in semiconductors does not guarantee automatic growth in the future. He pointed out, “The history of technology has repeatedly shown us that today's success does not ensure a competitive edge for tomorrow. Semiconductors are among the most important industrial assets Korea painstakingly built, and that’s why we must now ask what comes next.”

In response, Kim reiterated the seven key fields: SMR, nuclear fusion, renewable energy, quantum technology, advanced biotechnology, aerospace, and advanced materials and components. Although these industries have yet to form massive markets on the scale of semiconductors, he stressed the importance of identifying and investing early in technologies that could become Korea’s new economic growth engines over the next 10 or 20 years.

Kim noted, “A seed does not start out as a large tree. What matters is being able to anticipate which of these small seeds could grow big enough to support Korea 10 or 20 years from now, and to prepare the soil for those seeds to take root ahead of others.” He especially emphasized that the 3 Mega and 7 SEED initiatives should not be developed separately, but rather designed as a single, interconnected industrial ecosystem.

He cited energy as a prime example of such ecosystem linkages. As the number of AI data centers and semiconductor production facilities rapidly increases, electricity demand will inevitably surge. Accordingly, the importance of next-generation energy sources such as SMR and nuclear fusion will also grow. Kim explained, “As the AI data center and semiconductor industries expand, demand for electricity rises as well. Conversely, if we secure abundant, low-cost, and stable energy, Korea can more aggressively attract and expand semiconductor plants and AI data centers.”

He also highlighted that the technological capacity accumulated in AI and semiconductors can serve as a foundation for the growth of the 7 SEED fields. He envisions that large-scale AI computational power can accelerate research and development in quantum and advanced biotech, and that combining Korea’s strengths in precision manufacturing with AI and robotics could significantly enhance the competitiveness of the aerospace sector.

Kim emphasized the virtuous cycle not just of technology but of capital. He stated, “Capital earned from today's flagship industries should flow into research and development and into new businesses, some of which will grow into new industries. Once matured, those industries should, in turn, invest in the next wave of technologies and enterprises.” He added, “The capital generated by today’s leading businesses must be directed into the industries that will earn money in the future. Capital from large corporations, technology from researchers, and the drive of startups must all come together.” His point is that the industrial structure must become more robust to prevent the entire national economy from being swayed by the business cycle of any single sector.

To achieve this, Kim argued that rather than simply repeating the government-led industrial development strategies that successively fostered global industries like steel, shipbuilding, automobiles, and semiconductors, what is needed now is a new growth structure in which companies, researchers, startups, and capital are organically connected. He said, “We can no longer simply repeat the past recipes for success—times have changed, and so have technologies. Still, it is possible to create a structure where the success of one industry leads to the birth of the next.”

He further stated, “What is needed now is to make existing mega-industries even stronger while simultaneously planting new seeds. As one or two of the seven seeds we plant today grow into new Megas, Korea’s next growth journey will begin.”

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