Seoul: President Lee Jae Myung stated that South Korea's semiconductor industry should enhance its competitiveness by advancing the entire industrial ecosystem to meet the growing demand in the era of rapidly evolving artificial intelligence (AI). Lee shared his vision for the strategic industrial sector during a meeting with business leaders, industry officials, and experts to discuss plans to promote high-performance chips that power AI technologies amid intensifying global competition.
According to Yonhap News Agency, Lee emphasized that while expanding the overall market is essential, it is crucial to pursue a more inclusive and balanced development within the sector. He used the analogy of digging a well, suggesting that a wider and deeper approach is necessary for sustained growth, even if it takes more time. His comments were interpreted as a call to address structural imbalances in South Korea's semiconductor landscape, where companies like Samsung Electronics and SK hynix dominate the memory chip market, leaving other segments less developed.
South Korea maintains a strong position in the global memory market but is heavily reliant on U.S. semiconductor equipment and imports most of its chip materials from Japan. The country is also working to increase investment in foundry production to close the gap with global leader Taiwan. Lee urged companies to expand investment beyond the Seoul metropolitan area, with the government offering support in taxation, regulations, and infrastructure to promote balanced regional growth. He also noted the potential of southern regions rich in renewable energy resources for creating new industrial ecosystems and pledged bold policies to encourage corporate investment.
In addition to supporting advanced chip development, Lee committed to strengthening the broader semiconductor ecosystem, particularly in underdeveloped areas. He urged attention to the materials, parts, and equipment sectors, which are still heavily reliant on imports. During the meeting, the government revealed a comprehensive strategy to maintain Korea's leadership in next-generation memory chip technologies. Industry Minister Kim Jung-kwan announced plans to invest 215.9 billion won (US$146.8 million) by 2032 in developing next-generation memory technologies, including AI-optimized chips, while also enhancing Korea's competitiveness in system semiconductors.