On June 29th, South Korean President Lee Jae-myung bowed deeply at a 90-degree angle to Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won, expressing gratitude for their massive investment plans.

President Lee presided over a briefing on major national projects at the Blue House, where the two business leaders announced extensive investment strategies targeting semiconductors, artificial intelligence, and data centers, with reported figures reaching into the hundreds of trillions of won. Lee thanked the executives, calling them "national heroes" for making difficult decisions.

However, the initiative has reportedly sparked political controversy within South Korea, with critics suggesting the government is effectively pressuring corporations into committing to such large-scale investments.

The South Korean government announced the country's largest-ever investment plan for the semiconductor and AI industries on June 29th. It positions semiconductors, physical AI, and AI data centers as the three key pillars for industrial advancement, aiming to propel South Korea into a leading role in the global AI revolution.

Under the plan, Samsung and SK Hynix will invest approximately 800 trillion won to build four chip factories in the southwest region, with the goal of doubling DRAM production capacity within five years and anticipating a quadrupling of the global memory market. Concurrently, the country plans to invest over 1,000 trillion won in AI data centers by 2035, alongside 81 trillion won for a chip packaging cluster in the Chungcheong region.

At the project announcement, Samsung Chairman Lee Jae-yong detailed a total domestic investment of 265.5 trillion won (approximately RMB 11.65 trillion). Over 200 trillion won is earmarked for semiconductor clusters in Pyeongtaek and Yongin, with accelerated construction for the Yongin site. Separately, SK Group Chairman Chey Tae-won announced a combined 210 trillion won (approximately RMB 9.2 trillion) commitment to AI and semiconductors, with SK Hynix investing 110 trillion won to expand semiconductor production capacity and alleviate AI memory shortages.

Given the substantial electricity demands projected for the planned chip clusters, the government is considering ways to shorten nuclear power plant construction timelines. Kang Sun-jin, Chief of Staff to the President, told reporters on Monday that building a nuclear plant typically takes 9 to 10 years and that methods to reduce this period are under review. Specific plans are expected to be included in an upcoming long-term power supply and demand blueprint.

On June 30th, shares of Samsung Electronics and SK Hynix surged significantly. At the time of reporting, Samsung Electronics shares were up over 5%, bringing its year-to-date gain to more than 180%, while SK Hynix shares rose over 3%, with a year-to-date increase exceeding 300%.