President Lee Jae Myung (second from left) speaks at a meeting on No. 16, 2025, with leaders of industry on follow-up measures to Korea’s deal with the US to lower tariffs at the presidential office in Yongsan. (pool photo)
A list of three megaprojects to be unveiled by the South Korean government on Monday reportedly included the creation of a semiconductor cluster in the country’s southwestern Honam region by Samsung Electronics and SK Hynix.The total scale of the projects was found to be in the range of 2 quadrillion won, or approximately US$1.3 trillion. The major investment plan for the southeastern Yeongnam, southwestern Honam, and central Chungcheong regions is expected to become the largest industrial project embodying the Lee Jae Myung administration’s strategy to build “Five Mega-Regions and Three Special Self-Governing Provinces.”On Sunday, Blue House spokesperson Kang Yu-jung announced that Lee would be presiding over a briefing for the South Korean public on the three megaprojects at the Blue House’s state guesthouse at 2 pm on Monday.Samsung Electronics Chairperson Lee Jae-yong and SK Group Chairperson Chey Tae-won were scheduled to attend the event, where they would be personally announcing intermediate- to long-term regional investment plans. While the original plan was for the event to center on CEOs, the decision was made to have the group leaders attend in person as a reflection of the magnitude of the projects.Lee was scheduled to give introductory remarks on the topic “From recovery to a great leap forward: A ‘super-gap’ Republic of Korea.” Afterward, ministers from other Cabinet offices — including the Ministry of Trade, Industry and Resources and the Ministry of Science and ICT — were set to present on the three mega-projects, which included the semiconductor cluster, physical artificial intelligence, and gigawatt-level AI data centers.Samsung Electronics and the SK Group would then unveil their specific plans for regional investment. The Hankyoreh’s investigation found that the total for the projects — including investment by companies — would amount to around 2 quadrillion won.The core of the presentations on Monday is to center on a large-scale semiconductor cluster to be built in the Honam region by Samsung Electronics and SK Hynix.Originally, the two companies were chiefly considering the construction of semiconductor packaging plants in Honam, which consists of the Jeolla provinces and Gwangju. They later changed course toward the construction of entire semiconductor fabs, which encompass not only packaging but the entire production process.Investment plans were also to be announced for the Chungcheong and Yeongnam regions. The plans for investment in Chungcheong were found to include expansions of the packaging production base at Samsung Electronics’ Onyang campus and increased investment in Samsung Display’s Asan and Cheonan campuses. Hynix was reportedly planning to expand its NAND flash factory in Cheongju, North Chungcheong Province.The plans for the Yeongnam region, which consists of the Gyeongsang provinces, Ulsan, Daegu, and Busan, are expected to include increased investment in Samsung SDI’s Ulsan facility and Samsung Electro-Mechanics’ Busan facility. Samsung reportedly plans to focus its announcement on planned investment increases in semiconductors and displays, while SK will focus on plans for expanded investment in semiconductors and AI data centers.For the greater Seoul region, the plans reportedly include speeding up the timeline for the construction of a semiconductor cluster in Yongin, Gyeonggi Province.In a post to Facebook on Sunday, Minister of Trade, Industry and Resources Kim Jung-kwan said, “Samsung Electronics and SK Hynix have likewise decided to accelerate construction of the Yongin semiconductor cluster from the initial timeline.”“Samsung Electronics plans to begin production seven years ahead of schedule, while Hynix plans to do so 12 years ahead of schedule,” he added.The announcements on Monday are also likely to include information about prompt permit processing and increased state support for power supply networks.The Korean government has clearly signaled that it does not intend to rely on corporate investment alone.“The semiconductor industry is a battle with time, money and equipment,” a key government official told the Hankyoreh.“There will always be times when demand decreases, but if we intend to maintain a supply monopoly based on the current unmanageable demand, we will need to be able to build ultra-high-cost entry barriers faster than competitors like China,” they stressed.“This is a situation where the whole country needs to step up,” they added.In a post to Facebook on Sunday, Kim Yong-beom, the Blue House director of national policy, emphasized the element of “speed,” announcing plans to use the surplus liquidity from the semiconductor boom toward building the Honam semiconductor cluster and using it to create jobs for young people.By Bae Ji-hyun, staff reporter; Seo Young-ji, staff reporter; Park Jong-o, staff reporter; Kim Nam-il, staff reporterPlease direct questions or comments to [english@hani.co.kr]
