INDUSTRY & ECONOMIC POLICY

Samsung's 2,655 Trillion Won and SK's 2,100 Trillion Won: The Launch of South Korea's AI Great Transformation with All-In Bets on Semiconductors, Physical AI, and Data Centers

On June 29, 2026, the South Korean government held the National Report on the Three Mega-Projects, announcing a national industrial strategy and massive investment plan centered around semiconductors, physical AI, and AI data centers. In the semiconductor sector, under the 3S+1F strategy, the government aims to solidify memory dominance and build nationwide decentralized hubs (a southwestern fab, a Chungcheong packaging hub, and eastern/Daegyeong supply chain hubs), with Samsung and SK pledging thousands of trillions of won in domestic investments. In the physical AI sector, the goal is to become a global leader in robot manufacturing through manufacturing AI transformation, mass production of robots, localization of vulnerable components, and the establishment of robot clusters in Saemangeum and the Daegyeong region. For AI data centers, the plan is to create an AI infrastructure hub linked to semiconductors and physical AI through 18.4 GW of infrastructure, dedicated pricing plans, and the cultivation of NPU and cloud ecosystems. Experts diagnose that the success or failure of these projects hinges on securing power, water, and urban infrastructure, balanced regional development, residential conditions, and the detail and execution of follow-up policies.