South Korean President Lee Jae Myung met with Samsung Electronics Executive Chairman Jay Y. Lee to discuss expanding semiconductor investment beyond the Seoul metropolitan area, as the government prepares to unveil a nationwide regional development strategy built around advanced chip manufacturing and artificial intelligence, according to industry officials on June 25.
The two met for more than an hour at the presidential office ahead of a government-business meeting scheduled for June 29, where officials are expected to announce plans for a new semiconductor cluster in the country’s southwestern region along with broader investment commitments from Samsung Electronics and SK Hynix.
The initiative is a key part of President Lee’s effort to spread high-value manufacturing beyond the capital region and promote more balanced economic growth.
President Lee also met SK Group Chairman Chey Tae-won on June 19 to discuss regional investment plans, suggesting negotiations with South Korea’s largest technology companies are nearing completion.
Kim Yong-beom, the presidential chief for policy, said on June 24 that discussions on regional semiconductor clusters had entered their final stage and that the government plans to announce the strategy jointly with participating companies once details are finalized.
The plan is aligned with Seoul’s “Five Mega-Regions and Three Special Self-Governing Provinces” development strategy, which aims to strengthen regional economies through advanced manufacturing and technology investment.
A semiconductor competitiveness law scheduled to take effect in August includes provisions supporting regional chip clusters through incentives and streamlined permitting procedures.
President Lee said during a recent news conference marking his first year in office that the government would soon unveil major investment projects designed to reshape the country’s long-term growth strategy and distribute the benefits of advanced industries more evenly across the country.
Industry analysts expect the package to include investments totaling hundreds of billions of dollars, covering semiconductor fabrication and advanced packaging facilities, renewable energy infrastructure and AI industrial ecosystems.
Samsung Electronics and SK Hynix already operate major semiconductor manufacturing bases in central South Korea, making expansion of existing facilities one of the most likely outcomes of the new investment plan.
Following the expected announcement, Chey is scheduled to visit Gwangju on June 30, while Jay Y. Lee is expected to travel to Asan on July 2, where additional semiconductor and AI data-center investment plans could be unveiled.
The June 29 government-business meeting is expected to mark a significant step in South Korea’s effort to build new semiconductor hubs outside the capital region while reinforcing its position in the global chip industry.
