Chungcheong: An industrywide investment totaling 392 trillion won (US$252.5 billion) is set to be funneled into the central Chungcheong area. This includes the development of high bandwidth memory (HBM) fabs and packaging facilities by Samsung Electronics Co. and SK hynix. This initiative is part of the government's broader strategy to promote artificial intelligence (AI)-led growth, as announced by the industry ministry on Thursday.
According to Yonhap News Agency, the investment forms part of a follow-up plan to the government's tripolar mega projects. These projects, unveiled by President Lee Jae Myung earlier this week, aim to advance technologies nationwide and position South Korea as a leader in the emerging AI era.
The Ministry of Trade, Industry and Resources revealed that Samsung Group has committed to investing 140 trillion won in Chungcheong Province. This investment will fund the construction of an HBM fab and packaging facility by Samsung Electronics, along with an organic light-emitting diode and next-generation display production line by Samsung Display Co. Additionally, Samsung Electro-Mechanics will develop high-performance package substrate facilities for AI servers, while Samsung SDI Co. plans to establish an advanced battery manufacturing factory.
SK hynix announced its plan to invest 100 trillion won in building a NAND flash and advanced packaging fab. Meanwhile, pharmaceutical giant Celltrion Inc. has pledged a 2 trillion won investment in a biopharmaceutical manufacturing plant. Other companies will collectively invest 150 trillion won in an AI data center in Chungcheong.
To support these investment commitments, the industry ministry has outlined a strategy that includes tax incentives, policy financing, administrative support, and government subsidies. The government has also committed to fostering a regional industrial ecosystem, enabling companies to conduct all business stages locally, from recruitment and education to research and development (R and D) and manufacturing.
Industry Minister Kim Jung-kwan highlighted the strategic significance of the Chungcheong region, stating, "The Chungcheong region has long been known as a transportation hub where people, technology, and industry converge. Growth in Chungcheong's advanced industries will drive growth in South Korea's industry as a whole."