South Korea Plans 800 Trillion Won Semiconductor Cluster in Honam Region

President Lee Jae Myung has coordinated a massive expansion of South Korea's semiconductor infrastructure through a series of closed-door meetings with the nation's top industrial leaders. The initiative aims to shift the country's high-tech center of gravity away from the capital region to stimulate balanced national growth.

In June 2026, President Lee held private discussions with SK Group Chairman Chey Tae-won and Samsung Electronics Chairman Lee Jae-yong. A meeting with Lee Jae-yong on June 25 at the Blue House served as a final coordination effort for a strategic investment plan targeting non-capital regions, specifically the Honam and Chungcheong areas. These discussions culminated in a June 29 announcement regarding "three major megaprojects" designed to propel South Korea's economic trajectory.

A Strategic Shift in Geography

The centerpiece of this strategy is the establishment of a new semiconductor cluster in the Honam region. Samsung Electronics and SK Hynix have announced plans to invest a combined 800 trillion won—with each company contributing 400 trillion won—to construct four semiconductor fabrication plants. This move is designed to leverage the region's potential for renewable energy, aligning the industry with RE100 standards and reducing the industrial concentration that has historically plagued the Seoul metropolitan area.

Driving Regional Equity

This initiative is a core component of President Lee's broader growth strategy transformation. By relocating critical high-tech infrastructure to the Honam and Chungcheong regions, the administration seeks to address chronic regional economic inequality. The goal is to create a sustainable high-tech ecosystem that provides high-value employment and infrastructure development in provinces that have lagged behind the capital's rapid growth.

Global Leadership and Next Steps

Beyond domestic equity, the investment is a strategic effort to maintain South Korea's global leadership in AI and semiconductors. By utilizing the massive scaling capacity of Samsung and SK, the government intends to secure a competitive edge in the global supply chain while diversifying its industrial footprint. While the broad scale of the 800 trillion won investment is set, the industry will now watch for the specific timelines of the fab constructions and the detailed rollout of the supporting infrastructure in the Honam region.