South Korea to Invest Another 312 Trillion Won to Build Physical AI Center, Led by SK Group and Samsung, While Launching "Korean Version of Starlink" Plan on the Same Day

In this investment plan, SK Group, Samsung, Hanwha, and Hyundai Motor serve as the four main forces, injecting approximately 140 trillion, 60 trillion, 55 trillion, and 42 trillion KRW, respectively. LG Group and Doosan Group will also invest approximately 9.4 trillion and 5.1 trillion KRW, respectively, targeting fields such as next-generation displays, high-end home appliances, and small modular reactors (SMRs).

Regarding specific allocations, SK plans to invest 140 trillion KRW to build the nation's first 1GW-class hyperscale data center in Ulsan, and to deploy over 2GW of AI infrastructure across the Yeongnam region. Samsung intends to commit 60 trillion KRW to construct mass-production lines for humanoid robots, next-generation battery production lines, semiconductor packaging substrate lines, and certain shipbuilding support lines. Hanwha Group's 55 trillion KRW will focus on satellites, launch vehicles, and aerospace AI data centers, while Hyundai Motor's 42 trillion KRW will be directed toward AI-based autonomous driving, future mobility, and manufacturing AI.

The layout in the aerospace sector is accelerating simultaneously. Oh Tae-seok, administrator of the Korea AeroSpace Administration (KASA), announced in Jinju on the same day that South Korea will build a low-Earth orbit (LEO) satellite communication network consisting of hundreds of satellites by 2035. The system is positioned as a core infrastructure for maintaining national security and communication sovereignty, as well as a national strategic infrastructure for the 6G era.

In terms of lunar exploration, South Korea has moved its moon landing target timeline forward from 2032 to 2030, planning to launch a small private lunar lander using its domestically developed launch vehicle 'Nuri' (KSLV-II). A lunar orbit communication satellite in 2029 and an Earth-Moon scientific probe in 2031 will also be launched successively, gradually building up a lunar exploration system.

The Yeongnam region primarily includes South Gyeongsang Province, North Gyeongsang Province, and the metropolitan cities of Busan, Daegu, and Ulsan. The South Korean government has positioned this region as a "physical AI hub," with a focus on developing the robotics industry. Gu Yun-cheol stated that Gumi, Daegu, Changwon, and Pohang already possess well-established robotics industry ecosystems, and the government will use AI empowerment, combined with traditional powerhouse industries such as shipbuilding, nuclear power, and aerospace, to build a world-class industrial zone.

In terms of the specific division of labor, the South Korean government also announced a national aerospace strategy centered on Sacheon, aiming to build a southern coastal aerospace industrial belt; Busan is planned as a special zone for power semiconductors; Gumi is positioned as a core semiconductor material and component hub while also accommodating defense semiconductor production; Ulsan and the Yeongnam region will also vigorously develop high-performance server semiconductors to support the computing power demands of AI data centers.

During the briefing, Gu Yun-cheol stated that the AI and semiconductor industries are developing rapidly, and South Korea must ride this wave. He pointed out that the past development model centered on the Seoul metropolitan area is no longer viable, and the government must promote provinces to become the driving forces of national development.

To ensure the implementation of investments, the South Korean government will establish the Southeast Investment Corporation to provide financial support and special subsidies; the "Special Act on Semiconductors" will also officially take effect on August 11.

This investment plan for the Yeongnam region is the final piece of South Korea's "Three Mega Projects for National Takeoff." According to Yonhap News Agency, South Korea had previously announced investment plans of approximately 896 trillion won for the Southwest region and approximately 392 trillion won for the Chungcheong region, focusing on semiconductor wafer manufacturing and packaging/testing industries respectively.

The total investment for the three major projects reaches 1,600 trillion won, making it the largest industrial layout adjustment in South Korea's history since its founding, aimed at reshaping the national industrial landscape based on regional characteristics.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.