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President Lee Jae-myung greets SK Group Chairman Chey Tae-won after the announcement of corporate investment plans at the 3 Mega Projects National Report Meeting held at Cheong Wa Dae on the 29th, as Samsung Electronics Chairman Lee Jae-yong stands on the right. / Courtesy of Yonhap News

The government will push forward with "three mega projects" centering on semiconductors, artificial intelligence (AI) data centers, and physical AI by injecting a total of $1.13 trillion into the Honam, Chungcheong, and Yeongnam regions.

Samsung Electronics and SK Hynix will construct four memory semiconductor production bases (fabs) on an $580.8 billion scale in South Jeolla Province and Gwangju. The two companies will build two fabs each, and in the Chungcheong region, they will inject $58.8 billion to establish high-bandwidth memory (HBM) packaging fabs, which are a core AI infrastructure. SK, GS, and Naver will step forward to construct large-scale AI data centers by investing $399.3 billion until 2029.

President Lee Jae-myung presided over the "Three Mega Projects National Report Meeting for South Korea’s Great Leap Forward" at Cheong Wa Dae on the 29th and stated, "We must make this year one where the dream of an irreplaceable South Korea begins," adding, "The core task is a great leap forward into a super-gap industrial powerhouse."

President Lee emphasized, "Semiconductors, physical AI, and artificial intelligence data centers are the triangular axis for a great leap forward," adding, "We must fully assemble the capabilities of the government and the private sector to build a Korean-style AI ecosystem." He subsequently said, "The achievements of the three mega projects will take responsibility for the next 20 to 30 years of South Korea."

President Lee also highlighted the necessity of new production hubs. He explained, "Facilities centering on the existing Yongin and Pyeongtaek areas are already reaching their limits," adding, "The Honam region has been alienated from development for a long time, which has rather acted as an opportunity factor in a sense."

He carry on to promise, "The area with abundant water and abundant renewable energy is the southwestern coast region," adding, "I will place a directly controlled officer in charge of this project inside Cheong Wa Dae and take care of it personally."

Kang Yu-jung, senior presidential spokesperson, clarified that the investment amount announced on this day is a total scale of $1.13 trillion, including $650.5 billion for the Honam region, $284.6 billion for the Chungcheong region, and $196.0 billion (provisional figure) for the Yeongnam region.

At the national report meeting on this day, Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won attended and directly announced investment plans. President Lee bowed to greet the two chairmen, saying, "On behalf of the people, I express my gratitude for making a difficult decision for the future of our citizens and South Korea." President Lee also added, "I would like to call these two individuals national heroes, or heroes of the people."

Chairman Lee stated that he will pursue investments in Gwangju semiconductor, Gumi robot, and Ulsan battery production facilities. Samsung Electronics disclosed a policy to invest approximately $1.93 trillion in future growth fields, including the details announced on this day. Chairman Chey also stated that he will invest approximately $726.0 billion in the AI data center project and approximately $798.6 billion in the semiconductor supply expansion project.

President Lee stated during the discussion, "The president will take personal responsibility for ensuring that swift one-stop administrative procedures take place." Regarding the electricity rate issue, he said, "In accordance with the principle of local production and local consumption, I will make sure a clear merit arises in power rates as well."

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                                                                                                               Kim Da-bin