Kim unveiled the plan during a national investment briefing at Cheong Wa Dae chaired by President Lee Jae Myung, according to a government statement. Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won attended the meeting.
The cluster in the southwestern region is intended to become the nation’s second major semiconductor hub alongside the existing concentration in the Seoul metropolitan area. Kim said that “relying on a single production base in the Seoul metropolitan area is no longer sufficient to meet surging semiconductor demand,” noting that constraints on power and water resources limit further expansion under existing plans.
Beyond the main production cluster, Kim said the Chungcheong region will be developed into an advanced semiconductor packaging hub through 81 trillion won in investment, and the Daegu and North Gyeongsang regions will be fostered as innovation hubs for semiconductor materials, components and equipment.
The government pledged to streamline permits and construction procedures and invest in critical infrastructure including electricity and industrial water supplies. It also plans to invest 30 trillion won over the next 15 years to support the entire semiconductor value chain, from research and development and chip design to testing and manufacturing.
The semiconductor investment is part of the government’s “three mega projects” initiative, which also covers physical artificial intelligence and AI data centers. Under the physical AI pillar, the government will foster an AI-powered robotics industry. Kim warned that China has already begun mass-producing humanoid robots through regional manufacturing hubs, adding that “we must accelerate the foundation for mass production.” The government plans to create early domestic demand by procuring humanoid robots for education, defense and disaster response, aiming to raise South Korea’s share of the global humanoid robot market from 1 percent last year to 20 percent over the long term.
Minister of Science and ICT Bae Kyung-hoon outlined plans to expand the nation’s AI data center infrastructure. Under the plan, an initial investment of 550 trillion won will be spent to build 8.4 gigawatts of AI data centers by 2029, with gradual expansion by 10 gigawatts until 2035. “The next three years will be the golden time to become No. 1 in the area of physical AI,” Bae said. “The government will lead the physical AI sector, by designating it as a national strategic industry.”
Once the data infrastructure is in place, the science ministry plans to develop a general-purpose foundation model for physical AI in the next three years, based on a world model — AI tools that understand the dynamics of the real world, according to Bae.