The global economic landscape is gradually being reshaped. Information technology and AI have transcended the boundaries of a purely economic sector and become a new strategic competitive “front” between major powers and a decisive factor in a nation’s economic influence.
Many analysts argue that, in the current context, countries leading in AI will have a clear advantage in setting the rules of the game and leading the next technological era. To avoid being left behind, the RoK has placed AI at the forefront of its economic development strategy.
In its latest move, the RoK recently announced mega-projects aimed at creating breakthroughs in three areas: semiconductors, physical AI, and AI data centres. The plan involves the participation of two RoK technology giants, Samsung and HK, along with many other businesses.
President Lee Jae Myung highlighted that previous governments paved the way for the RoK to become an export-oriented economy in the 1970s, and then laid the foundation for the country to rise as an information technology powerhouse in the 2000s. Now, AI, semiconductors, and data will become the “third springboard” in the country’s development history, determining the competitiveness of the RoK economy for decades to come.
Besides the massive investment figures, a notable highlight of the plan is the reshaping of the national development landscape. For decades, the RoK’s growth has revolved primarily around the Seoul metropolitan area, regarded as the “headquarters” of leading corporations and universities, and a hub for high-quality human resources.
This model optimised resources, contributing significantly to the “Miracle on the Han River,” but also widened the development gap between the central region and the surrounding provinces. With the current plan, the RoK will build a new semiconductor industrial belt in the southwest, an advanced packaging centre in the Chungcheong region, and artificial intelligence data centres nationwide.
The RoK government anticipates that expanding production beyond the capital region will create new growth drivers for the provinces, narrow the development gap, and reduce pressure on semiconductor hubs like Yongin and Pyeongtaek, which have already reached their capacity limits.
Experts believe that these key projects are a necessary turning point to help the RoK overcome the limitations of its capital-centric growth model and form a nationwide innovation network. President Lee Jae-myung expressed hope that the new plan will create momentum to transform the entire country into a “Korean version of Silicon Valley” while establishing a solid foundation to realise the goal of becoming a leading global technology power.
This is not the first time President Lee Jae-myung has stressed the importance of AI in the RoK’s economic development strategy. The Blue House occupant has repeatedly stated that the RoK is at a historical turning point: accepting the risk of being left behind or seizing the opportunity to become a pioneer.
The success of these AI development projects will determine the RoK’s competitiveness for the next 20 to 30 years. Professor Cho Dong-keun, an economics professor at Myongji University, asserted that the semiconductor industry is vital to the RoK economy. Early investment in this strategic sector will help the RoK maintain its advantage over formidable competitors.
Besides these expectations, the RoK’s plan also faces numerous challenges. Professor Lee Jong-hwan from Sangmyung University pointed out that the most difficult problem currently is that most skilled workers and suppliers are still concentrated around Seoul.
To build large-scale chip factories from scratch in new areas, the RoK will need to address the enormous challenges of electricity and clean water supply to operate and cool data centres, along with a modern logistics network, which cannot be established quickly. Furthermore, attracting high-quality human resources to work in these areas remains a formidable challenge.
Despite numerous challenges, many experts maintain that with a clear development strategy and the concerted efforts of the business community nationwide, the RoK will gradually reposition itself on the global technology map.
