Samsung Group is preparing to announce a massive 1,000 trillion won ($648 billion) investment in South Korea over the next decade. The sweeping 10-year plan aims to capitalize on the global artificial intelligence boom and transform it into a nationwide economic engine.
The announcement is expected on Monday during a high-profile meeting with President Lee Jae Myung, which will also be attended by top executives from Samsung and rival chipmaker SK Hynix. According to media reports, Samsung’s mega-investment will target AI data centers, next-generation batteries, displays, and a potential 300 trillion won push to build cutting-edge semiconductor factories in South Korea’s southwestern region, News.Az reports, citing Reuters.
This aggressive timeline comes as skyrocketing demand for AI memory chips forces tech giants to accelerate projects originally slated for the 2040s into the mid-2030s.
Historically, South Korea’s tech manufacturing has been heavily concentrated around the capital city of Seoul. However, that region is rapidly running out of space, power, and water to support massive AI expansion.
President Lee’s administration is heavily pressuring conglomerates to spread their investments to foster balanced regional development. Potential sites include Gwangju, a key southwestern city with a smaller regional economy that could see a massive boost from a new tech hub.
Political Backlash and Hurdles
Despite the economic promise, the ambitious plan faces stiff challenges and political skepticism:
Labor Shortages: Industry experts warn that finding enough highly skilled tech workers willing to relocate outside the Seoul metropolitan area could determine whether the project succeeds or fails.
Political Accusations: Opposition lawmakers have criticized the timing, accusing the government of pressuring private companies to invest heavily in the ruling party’s political strongholds ahead of upcoming leadership contests.
Economic Anxiety: Existing tech hubs, such as the city of Icheon where SK Hynix currently operates, fear that diverting resources to new regional clusters could decimate their local economies and tax revenues.
The presidential office has confirmed it will officially unveil “three mega-projects” on Monday spanning semiconductors, AI data centers, and robotics. Both Samsung and SK Hynix have declined to comment ahead of the official meeting.