Seoul: South Korea's leading conglomerate, Samsung Group, has announced a significant investment commitment of 2,655 trillion won (US$1,721 billion) to align with the government's regional development initiative, focusing on the artificial intelligence (AI) industry. This pledge was made public on Monday as part of the government's strategy to bolster the country's technological capabilities and establish South Korea as a leader in the AI-driven industrial landscape.
According to Yonhap News Agency, the investment plan includes a substantial allocation of 625 trillion won for the southwestern and southeastern regions, as well as the central Chungcheong provinces. This announcement followed President Lee Jae Myung's introduction of the government's "three megaprojects" initiative, which aims to enhance South Korea's standing in advanced technologies and evolve into an industrial powerhouse during the AI era.
The majority of the investment, amounting to 2,030 trillion won, is earmarked for developing a semiconductor cluster at Samsung's campus in Pyeongtaek, located approximately 60 kilometers south of Seoul, and completing the semiconductor cluster in Yongin, just south of the capital.
Samsung Electronics Chairman Lee Jae-yong also revealed that the company is considering Gwangju, a southwestern city, as a potential site for a new semiconductor base. This facility would complement Samsung's existing production centers in the greater Seoul metropolitan area. The company emphasized that a new semiconductor cluster in Gwangju is crucial to meet the surging demand for chips.
Samsung highlighted that Gwangju is being evaluated as a candidate site due to potential incentives such as electricity and water supplies, workforce recruitment and training, and improved settlement conditions. Once operational, the Gwangju production base is expected to establish the region as a key player in South Korea's chip industry alongside the Seoul metropolitan area.
In addition to semiconductor investments, other Samsung affiliates are contributing to the country's AI infrastructure goals. Samsung SDS Co. plans to construct an AI data center in Haenam, situated 330 kilometers southwest of Seoul. Furthermore, Samsung C and T Corp. intends to invest in solar energy and nuclear energy-based hydrogen production facilities in the southwestern region.