South Korean President Lee Jae Myung announced three "mega projects" on Monday, June 29, targeting semiconductors, AI-powered robotics, and large-scale data centers.
These initiatives represent a strategic effort to maintain a competitive edge in the global technology sector. By integrating hardware manufacturing with artificial intelligence and infrastructure, South Korea aims to dominate the supply chain required for the next generation of computing.
The government investment for these projects is estimated at 1.43 quadrillion won, or approximately $919 billion [1]. Other reports place the investment figure for semiconductor and AI projects at 1,500 trillion won [3] or as high as 2,000 trillion won over a 10-year horizon [2].
"We will secure our position in the AI race through these mega projects," Lee said at the briefing in Seoul.
Major industry players including Samsung, SK Group, and Naver are central to the plan. The Samsung Electronics CEO said the company is committed to investing 2,000 trillion won over the next 10 years to drive semiconductor and AI innovation [2].
Infrastructure expansion will focus on data center capacity. While some reports cite a target of 8.4 GW [5], other data indicates a plan to build 18.4 GW of capacity by 2035 [1]. To support this energy demand, KKR and SK have launched a $1.3 billion renewable energy platform [6].
"Our partnership with SK Group will focus on building AI‑powered data centres and advanced robotics," the Naver COO said.
The projects will be implemented across several key sites, including Gwangju, Asan, and Jinju [3]. These locations will host the physical AI robotics facilities and advanced chip fabrication plants necessary to sustain the 10-year investment goal.
“"We will secure our position in the AI race through these mega projects,"”
This massive capital injection signals South Korea's intent to move beyond being a mere component supplier for the global AI industry. By coupling semiconductor fabrication with "physical AI" (robotics) and massive energy-backed data centers, the country is attempting to build a vertically integrated AI ecosystem. This strategy aims to reduce reliance on foreign software frameworks and ensure that the physical infrastructure of AI remains anchored in Seoul and its surrounding industrial hubs.
