Last updated on July 21st, 2026 at 08:43 am
South Korea has announced plans for AI and semiconductor projects worth up to $576billion as President Lee Jae Myung looks to strengthen the country’s position in the global technology industry.
The projects, released on Monday, will include new AI data centres, semiconductor manufacturing hubs and other technology infrastructure over the coming years. President Lee said semiconductors, physical AI and AI data centres would form the foundation of South Korea’s next stage of economic growth.
🚨BREAKING: South Korea launches $518B AI project in an “all-out war” to dominate the global tech race, unveiling massive chip and data center investments to stay ahead. pic.twitter.com/238okbydC7
— Pulse Alpha (@pulsealpha_) June 29, 2026
The plan is expected to attract investment from major chipmakers, including Samsung Electronics and SK Hynix. South Korea’s southwestern city of Gwangju and South Jeolla Province will contribute between 5 trillion and 20 trillion won to support the projects. An additional 81 trillion won is expected to be invested in a semiconductor packaging cluster in the Chungcheong region, near Seoul.
Why are countries racing to build AI systems?
South Korea is joining a growing list of countries investing heavily in artificial intelligence and semiconductor production as governments compete for a larger share of the global AI industry.
The United States has committed billions of dollars to expand domestic chip production through the CHIPS Act, while Japan has increased funding for semiconductor manufacturing and AI development. China continues to invest heavily in homegrown AI companies and chip production as it seeks to reduce its reliance on foreign technology. In Europe, countries including Germany and France are also supporting AI data centres and semiconductor projects.
The growing investment matters beyond artificial intelligence. Faster chip production supports cloud computing, blockchain networks and crypto mining equipment, while AI is increasingly being used across digital asset exchanges for fraud detection, compliance and customer services.
Regional development remains part of the plan
The new projects will be centred in South Korea’s southwest, where the government hopes to build large semiconductor production clusters and make use of available power resources.
President Lee defended the location after opposition politicians questioned whether the investment favoured one political region. He described the proposal as a national economic strategy aimed at reducing regional inequality while expanding South Korea’s technology capacity.
Industry experts welcomed efforts to spread investment beyond Seoul but warned that building advanced chip factories requires reliable electricity, water supplies, transport links, specialised suppliers and highly skilled workers. They said developing those resources could take years, even with strong government backing.
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