Samsung, SK to Invest ₩800 Trillion in South Korea | WPN World People News

South Korea on June 29 unveiled its largest-ever "Three Major Leap Forward Plan," with total planned investments exceeding ₩1,800 trillion (about US$1.3 trillion) as the government seeks to reinforce the country's position as a global technology powerhouse.

A key pillar of the initiative is an investment of approximately ₩800 trillion (around NT$17 trillion) led by Samsung Electronics and SK Hynix to build a new semiconductor manufacturing hub in the country's southwest. The project will include the construction of four memory chip fabrication plants and is expected to accelerate growth across the semiconductor, artificial intelligence (AI), and data center industries.

Minister of Trade, Industry and Energy Kim Jung-kwan said the investment will be concentrated in Gwangju and the Jeolla region, with the goal of establishing South Korea's second major semiconductor cluster while promoting more balanced regional development. Under the plan, Samsung and SK Group will each build two semiconductor fabrication plants, while the government aims to double the nation's DRAM production capacity within the next five years.

The government also plans to invest heavily in AI data center infrastructure through 2035, while expanding support for emerging sectors such as robotics and physical AI to further strengthen the country's industrial competitiveness.

Market analysts noted that the scale of the investment rivals spending by some of the world's largest technology companies on data center infrastructure, underscoring South Korea's determination to maintain its leadership in AI memory chips and enhance national economic security.

Although shares of Samsung Electronics and SK Hynix have recently retreated amid intensifying competition and profitability concerns, analysts remain optimistic that the investment plan will stimulate growth across the semiconductor supply chain and equipment industries, providing long-term momentum for South Korea's economy.