South Korea is reviving a national industrial policy focused on artificial intelligence and high-tech manufacturing to secure economic growth [1, 2].
This shift represents a strategic attempt to maintain global competitiveness as the AI boom transforms international trade and production. By aligning government goals with corporate capabilities, Seoul aims to accelerate a nationwide technological transformation [1, 2].
Central to this strategy is the role of major conglomerates. The Samsung Group has pledged investments totaling 1,000 trillion won, which is approximately $648 billion [3]. These funds are expected to drive the development of AI-integrated hardware and next-generation semiconductors, the backbone of modern computing.
Beyond domestic growth, the policy includes a significant international component. South Korea has pledged $350 billion for investment in the U.S. [4]. This move suggests a desire to integrate South Korean tech ecosystems with American markets and research hubs.
Analysts said that while industrial policies are necessary for rapid scaling, they are often difficult to execute successfully [2]. The current approach relies heavily on the synergy between the state and the "chaebols," the family-run conglomerates that have historically driven the nation's economy.
By focusing on AI, the government intends to move beyond traditional electronics manufacturing. The goal is to create a sustainable cycle of innovation where AI optimizes the very factories producing the chips that power it [1].
“South Korea is reviving a national industrial policy focused on artificial intelligence and high-tech manufacturing.”
This policy signals a return to state-led economic steering, moving away from purely market-driven growth. By tying massive corporate capital from Samsung to national AI goals and U.S. partnerships, South Korea is attempting to hedge against the volatility of the global chip market and ensure it remains a primary supplier of AI infrastructure.
