Seoul: The presidential policy chief emphasized the necessity for aggressive investment in artificial intelligence (AI) infrastructure to enhance South Korea's potential growth in the emerging AI era. Kim Yong-beom, the presidential chief of staff for policy, highlighted this need during a discussion hosted by the Kwanhun Club, a senior journalists' association, amid a booming stock market driven by AI-related chipmakers' profits and stock gains.
According to Yonhap News Agency, Kim stressed that the semiconductor and AI supercycle represents the onset of a structural transformation that could elevate South Korea's growth trajectory and reorganize its industrial structure. He urged for a proactive response through substantial state infrastructure investment, aimed at transforming the nation's industrial landscape.
Kim specifically pointed out the necessity for vast amounts of electricity, land, and a new industrial ecosystem, suggesting that regional areas could offer the required landscape for data centers, future electricity networks, and other critical infrastructure. The capital region, he noted, lacks the capacity for further expansion in terms of land, electricity, or water, thereby indicating a potential shift towards developing an additional semiconductor cluster in a regional area.
Currently, a semiconductor cluster is being constructed in Yongin, south of Seoul, poised to become a pivotal production hub for advanced semiconductor products from major companies like Samsung Electronics Co. and SK hynix Inc. Kim revealed that discussions regarding the construction of an additional cluster are nearing completion, with plans to inform the public once finalized.
The policy chief also called for social discussions on utilizing excess tax revenues and policies addressing social and labor issues in the AI era, emphasizing the need to ensure equitable distribution of AI-driven growth benefits. While AI has the potential to enrich the nation, Kim warned that not all citizens might equally enjoy its advantages.
South Korea's economy is on track for a real growth rate of 3 percent this year, with the nominal growth rate expected to reach the 10-percent range. Kim highlighted positive economic indicators, including the country's annual per capita national income reaching US$40,000, record-high corporate profits, and stock market rallies. However, he expressed concerns about the continued depreciation of the Korean won against the U.S. dollar and instability in the real estate market, identifying them as new challenges to address.