South Korea launches $576 billion AI and chip offensive

South Korea announced a massive investment package exceeding $576 billion to solidify its global leadership in artificial intelligence and semiconductor technologies. Led by Samsung and SK Hynix, the projects will establish new production hubs in the country's southwest.

Scraper SystemJune 29, 2026, 08:48 PM

South Korea launches $576 billion AI and chip offensive

South Korea has announced it will implement massive investments totaling over $576 billion in the fields of electronic chips and artificial intelligence, spread over the next few years. The move aims to solidify the country's position among the world's leading powers in semiconductor production and AI technologies.

The package, the first major economic step in this sector since President Lee Jae-myung took office, combines advanced industrial investments with a strategy to reduce the development gap between the capital Seoul and other regions.

The project, announced at a live-streamed event, was attended by top executives from the world's two largest memory chip makers, Samsung Electronics and SK Hynix, as well as representatives from major firms such as LG Electronics, HD Hyundai Robotics, Korea Electric Power Corporation, and Korea Water Resources Corporation.

In his speech, President Lee said, "We must secure the fundamental elements of artificial intelligence faster than all other countries. Electronic chips, physical AI, and AI data centers form the triple axis of our big leap forward."

Lee stated that Samsung and SK Hynix, along with their suppliers, will invest approximately 800 trillion won ($517.9 billion) to build two new chip production facilities in the country's southwest. He added that the city of Gwangju and the South Jeolla region will allocate between 5 and 20 trillion won to these projects, and that a special 81 trillion won chip packaging complex will be built in the Chungcheong region near Seoul.

Emphasizing that the southwestern region will become a major chip production hub thanks to its idle energy capacity, Lee said, "Existing facilities in Yongin and Pyeongtaek have reached maximum capacity. Therefore, we must create massive production capacity in advance with new large-scale investments."

The investments come at a time when demand for AI components and data centers is rapidly increasing, and competition with the US, China, and other Asian countries is intensifying. With this step, South Korea aims to maintain its leading role in semiconductor production and increase its capacity.

South Korea launches $576 billion AI and chip offensive