Samsung Group Plans ₩1,000 Trillion Investment to Boost South Korea’s AI and Chip Ambitions
Samsung Group is preparing to unveil a decade-long investment plan worth 1,000 trillion won ($648 billion), marking one of the largest corporate investment commitments in South Korea’s history. The announcement is expected on Monday during a meeting with President Lee Jae Myung, as the government seeks to position artificial intelligence and advanced manufacturing at the centre of the country’s next phase of economic growth.
The reported investment package includes AI data centres, semiconductor manufacturing, batteries and display technologies. In particular, Samsung is considering investing as much as 300 trillion won in new semiconductor factories in South Korea’s southwest, according to the Maeil Business Newspaper.
Investment Targets AI Growth and Regional Expansion
The proposed initiative aims to transform South Korea’s expanding AI industry into a nationwide growth engine. At the same time, it seeks to ease infrastructure constraints while creating jobs and expanding advanced manufacturing beyond the Seoul metropolitan area.
Senior executives from Samsung Electronics and SK Hynix are expected to attend Monday’s meeting, where they will outline regional investment strategies designed to support economic development outside the capital. However, the report did not specify when the investments would be made. Other local media have also reported similar plans, although without disclosing investment figures.
The presidential office has confirmed that it will announce three major national projects focused on semiconductors, AI data centres and robotics. Policy adviser Kim Yong-beom said the initiatives would be presented jointly by the government and industry, with significant private-sector investment anticipated.
Meanwhile, Samsung and SK Hynix declined to comment on the reported plans.
Pressure to Expand Beyond Seoul
South Korea has long faced criticism over the heavy concentration of semiconductor production around Seoul. President Lee has made balanced regional development a key policy objective, arguing that economic growth should extend beyond the capital region.
Kim Yong-beom has warned that growing AI-driven demand for memory chips is accelerating the need for additional production capacity. He said projects originally planned for the 2040s may need to be completed by the mid-2030s because existing industrial areas around Seoul face increasing constraints on land, electricity and water.
He also cautioned that continued industrial concentration around the capital could worsen property prices and deepen regional inequality.
Despite those concerns, some experts question whether the southwest can provide the skilled workforce and infrastructure required for advanced semiconductor manufacturing.
Kim Tae-yun, a professor of administration at Hanyang University, said attracting highly skilled workers would be one of the biggest challenges. He added that unless Samsung builds a genuinely cutting-edge fabrication facility, the wider economic benefits could remain limited, serving mainly as a construction and property development project.
Political Debate Intensifies
The proposed investment has also become a political issue. Opposition lawmakers argue that the government is encouraging companies to invest in the southwest for political reasons, particularly ahead of the ruling party’s leadership contest.
President Lee reportedly held separate meetings this week with the heads of Samsung and SK Group. However, opposition figures insist that investment decisions should remain commercial rather than political.
The People Power Party has criticised the administration’s approach, arguing that companies, not the government, should determine where semiconductor factories are built.
Regional Competition for Semiconductor Projects
Competition among regional governments has intensified as South Korea prepares for its next wave of semiconductor investment. Ahead of the June local elections, multiple regions promoted proposals to attract Samsung and SK Hynix by offering ambitious semiconductor development plans.
Suggestions included a 500 trillion won semiconductor complex in the southwest, alongside proposals to expand existing industrial clusters elsewhere. The competition reflects growing recognition that semiconductor investment will play a crucial role in regional economic development.
Existing chipmaking cities are also watching developments closely. In Icheon, where SK Hynix operates major manufacturing facilities, local leaders fear that new investment elsewhere could eventually reduce production at current sites.
Community representative Jo Jun-taek said much of the city’s tax revenue and welfare spending depends on SK Hynix’s semiconductor operations. He warned that relocating production could lead to population decline and serious economic consequences for the city.
President Lee has promoted a national development strategy centred on five regional hubs and three special self-governing provinces to reduce Seoul’s economic dominance, which accounted for 52.8% of South Korea’s gross regional domestic product in 2024.
Attention has increasingly focused on Gwangju and the wider Jeolla region, where local media report Samsung is considering future investment opportunities. The area is also a longstanding political stronghold for Lee’s Democratic Party.
Lee secured 49.42% of the national vote in the June 2025 presidential election, while receiving about 85% of votes in Gwangju and South Jeolla.
With inputs from Reuters