South Korean President Lee Jae Myung views a humanoid robot displayed ahead of a meeting with representatives of defense companies to discuss strategies for beefing up the defense industry, at the Cheong Wa Dae presidential office in Seoul, South Korea, 26 June 2026. Photo by YONHAP / EPA
June 28 (Asia Today) — South Korean President Lee Jae Myung is set to unveil Monday three public-private mega-projects reportedly involving about 1,000 trillion won ($649 billion) in investment in semiconductors, artificial intelligence data centers and physical AI.
The projects are intended to promote advanced industries outside the Seoul metropolitan area while creating new sources of economic growth as Lee begins his second year in office.
Lee will preside over a public briefing on the three projects at the presidential compound in Seoul, according to the presidential office.
Samsung Electronics Executive Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won are expected to attend and present their companies’ investment plans. SK Group controls SK Hynix, one of South Korea’s two largest semiconductor manufacturers.
The centerpiece of the initiative is expected to be a semiconductor cluster in the southwestern Honam region led by Samsung Electronics and SK Hynix.
The government also plans to connect semiconductor production, AI data centers and physical AI industries to establish advanced industrial ecosystems across the Honam, Chungcheong and Yeongnam regions.
The presidential office described the projects as part of a regional development strategy intended to reduce the concentration of advanced industries in the Seoul area and establish new economic centers elsewhere in the country.
Lee reportedly met separately with Chey on June 19 and Lee Jae-yong on Wednesday to discuss cooperation between the government and private companies on the semiconductor initiative.
The opposition People Power Party has criticized the plan before its formal announcement, arguing that semiconductor investment should be based on access to electricity, water, skilled workers and supplier networks rather than regional development goals.
“Semiconductors are an ecosystem, not an electoral district,” the party said, calling for an assessment of the Honam region’s economic feasibility and infrastructure before investment decisions are made.
Lee rejected claims that the government had pressured companies to invest in the region.
He described the planned Honam semiconductor cluster as a “historic achievement” and said corporate executives had decided to participate because they concluded that the investments would benefit their companies.
Responding to questions about the location, Lee said Gwangju and South Jeolla Province had received the highest rating in the semiconductor category during a government competition to select specialized national high-tech industry zones under the previous administration.
“The matter was already officially confirmed under a People Power Party government,” Lee said.
Specific locations, investment schedules and the division of spending among the government and participating companies are expected to be announced at Monday’s briefing.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260629010009837
