Samsung Electronics Co. and SK Hynix Inc. announced a combined investment of roughly 2,000 trillion won, or about U.S.$1.3 trillion, in AI and semiconductor projects [1].
The scale of the spending aims to secure South Korea's position as a global technology leader by accelerating the production of next-generation chips. This move is intended to drive the country's next growth phase through strengthened artificial intelligence capabilities [2, 3].
President Lee Jae Myung detailed the investment drive during a government briefing in Seoul on June 29, 2026 [2, 3]. The president said the two companies played a role in the nation's economic stability and technological advancement.
"They are national heroes," Lee said [4].
The announcement comes as the global race for AI supremacy intensifies, requiring massive capital expenditures for fabrication plants and research and development. By aligning the goals of the state and the private sector, the administration seeks to create a more resilient semiconductor ecosystem — one that can withstand geopolitical volatility.
Market reactions were immediate following the news. Korean stocks rebounded as investors responded to the aggressive spending plan and the explicit support from the presidency [2]. The investment focuses on both the hardware required for AI processing, and the software integration necessary to maintain a competitive edge over international rivals [2, 3].
“"They are national heroes."”
This investment represents a strategic pivot toward total state-industry alignment in South Korea. By labeling the firms 'national heroes' and coordinating a US$1.3 trillion spend, the government is treating semiconductor dominance as a matter of national security rather than just corporate profit. This aggressive posture is designed to ensure that the infrastructure for the AI era remains anchored in Seoul, reducing reliance on foreign technology and stabilizing the domestic economy against global market swings.
