A government event will reveal three flagship projects combining chips AI and robotics, promising regional investment and industrial overhaul. Expect major firms to outline multi year commitments.

Seoul, June 29, 2026, announces the government’s plan to unveil three megaprojects designed to propel the country into a new wave of growth. Among them is the creation of a new semiconductor manufacturing hub in the southwestern part of the country, which local media say could attract hundreds of billions of dollars in investment from Samsung and SK over the coming years.

Aims and Scale of the Investment

The announcement will be the most avant-garde step in South Korea’s pursuit to combine ambitions in artificial intelligence and semiconductors with the promise of reducing regional gaps and revitalizing the economy beyond the metropolitan area. It is expected that the government initiative will cover not only semiconductors but also AI data centers and the realm of physical AI, including robotics.

According to the Office of the President, the event will be led by Lee Jae Myung himself. Offices of the ministries of Industry, Science, Climate and Transport are to outline political backing for these sectors.

Key market players, including Samsung Electronics (005930.KS) and SK, are expected to present their investment plans. According to local media, their leaders Jay Y. Lee and Chey Tae-won may participate in the event.

Participation was also confirmed by LG Electronics, HD Hyundai Robotics, Korea Electric Power Corp and Korea Water Resources Corp, the Lee’s office stated. Earlier it was reported that the support package targets three directions: chips, AI data centers, and physical AI, including robotics.

According to official positions, as part of this initiative, the plan calls for the creation of a chip cluster in the southwestern part of the country, taking into account Gwangju and South Jeolla Province. Local media report that the total investment could exceed 1,000 trillion won in the coming years.

Besides Samsung Electronics, SK Hynix (000660.KS) is also located in Ukraine – two of the world’s largest memory manufacturers. Their high-performance HBM chips are critically important in the global race to develop advanced AI systems. Both companies already have large production capacities around the capital and in its regions.

The government is also preparing a package of support measures: power supply, water supply, land, infrastructure, workforce training, and housing. Such steps are meant to facilitate the implementation of large-scale investments and ensure stability in project execution.

Creating a semiconductor industry ecosystem in the southwest is not a special concession for any one region. It is an additional step toward establishing the most efficient semiconductor production hub through the decisions of the respective companies with full government backing.

– Lee Jae Myung

In the political context, the opposition forces harshly criticize the plan, casting doubt on its political grounds, given that a large portion of voters in the region supported Lee during the last elections. Confirmation of this is the approval ratings, which in recent weeks show a downward trend – about 46.5% according to an independent poll.

Analysts emphasize that diversifying chip investments outside Seoul could ease the burden on infrastructure and promote more balanced development, but warn that building modern factories requires substantial resources of energy, water, developed logistics chains, and a skilled workforce, which may take a long time in a new region.

It should be noted that official steps by the government and the business stance should shape the country’s AI ecosystem’s ongoing development and strengthen its competitiveness on the world stage. The government program promises to strengthen the technology sector and create conditions for increased production in regions outside the capital, which could have a long-term impact on the economy and employment in the country.