Equivalent to more than two-thirds of GDP: South Korea to invest nearly $1.2 tn in chips, AI data centres

South Korea plans to invest nearly $1.2 trillion in a new chip-making hub and AI data centers over several years, a level described as more than two-thirds of its GDP. The government said Samsung Electronics and SK hynix will commit 800 trillion won (about $520 billion) to build a semiconductor fabrication hub in the southwest. It also announced a separate plan for a quadrillion won (around $650 billion) in AI data centers across the next 10 years. President Lee Jae Myung said the country must secure AI core elements faster than others, while Industry Minister Kim Jung-kwan said the project will include four fabrication plants with each company building two. Additional figures include 550 trillion won for AI data centers by 2029 and a target of expanding to a total exceeding 18.4 gigawatts by 2035. The strategy aims to develop Honam, including Gwangju and the Jeolla provinces.