Home to industry titans like Samsung Electronics and SK hynix, South Korea is strengthening its supply chain in AI hardware by charging ahead with a slot online boost.
Targeting promising chip materials, parts, equipment and fabless companies, the state fund aims to accelerate the construction of advanced manufacturing hubs across the country. The government will also provide a further ₩5tn (US$3.52bn) in trade finance for suppliers.
The news was revealed in a press briefing conducted by Kang Hoon-sik, who is the country’s Presidential Chief of Staff, following a meeting chaired by South Korean President Lee Jae Myung.
These measures are part of President Lee’s semiconductor megaproject initiative unveiled in June 2026 where Samsung Electronics and SK hynix are expected to invest more than US$576bn alongside suppliers and local governments.
The government would also launch a 10-year, ₩1tn (US$704m) programme to support cooperation between large companies and smaller suppliers across semiconductor development, testing and production.
Infrastructure plans for semiconductor manufacturing
The government will seek passage of a Mega Special Zone Act at parliament within the year to speed up permits, environmental reviews and infrastructure construction.
President Lee urged the Defence Ministry to relocate functions of a military air base in Gwangju, South Korea by mid-2028. This move aims to accelerate development of a semiconductor manufacturing complex planned for the site.
The government has designated the 8.3 million-square-metre area area as a candidate national industrial complex. Plans are in place to complete relocation and temporary dispersal of military facilities by the second half of 2028.
Kang says the government would ensure power and water supplies are available on schedule for new semiconductor projects.
For the planned chip cluster in the southwestern Gwangju-South Jeolla region, authorities plan to secure 650,000 tonnes of water daily by 2030 using recycled wastewater and supplies from nearby dams.