South Korea Bets 21.3 Trillion Won on AI, with Semiconductors and Physical AI at the Core of Growth
On November 2, South Korean President Lee Jae-myung delivered a policy address to the National Assembly, proposing a comprehensive overhaul of the country’s growth strategy, with a focus on expanding investment in artificial intelligence, semiconductors, and future technologies.
Three major initiatives—semiconductors, physical AI, and AI data centers—will receive 21.3 trillion won in investment, nearly twice this year’s amount.
South Korea also plans to invest 13.8 trillion won in ten next-generation strategic technology fields, raise its R&D budget to a record 39.5 trillion won, and accelerate the energy transition.
This sends a signal worth watching: South Korea is extending the AI race beyond software and models to chips, data centers, robotics, and energy infrastructure.
For global markets, the investment rationale across the AI industry chain is also changing. The beneficiaries may not be limited to AI model companies; semiconductor equipment, advanced packaging, data centers, power supply, and robotics could all attract more capital.
One point to watch is that AI infrastructure requires sustained investment. Whether it ultimately translates into corporate profits and real productivity will be key to determining whether this investment cycle can continue.
On November 2, South Korean President Lee Jae-myung delivered a policy address to the National Assembly, proposing a comprehensive overhaul of the country’s growth strategy, with a focus on expanding investment in artificial intelligence, semiconductors, and future technologies.
Three major initiatives—semiconductors, physical AI, and AI data centers—will receive 21.3 trillion won in investment, nearly twice this year’s amount.
South Korea also plans to invest 13.8 trillion won in ten next-generation strategic technology fields, raise its R&D budget to a record 39.5 trillion won, and accelerate the energy transition.
This sends a signal worth watching: South Korea is extending the AI race beyond software and models to chips, data centers, robotics, and energy infrastructure.
For global markets, the investment rationale across the AI industry chain is also changing. The beneficiaries may not be limited to AI model companies; semiconductor equipment, advanced packaging, data centers, power supply, and robotics could all attract more capital.
One point to watch is that AI infrastructure requires sustained investment. Whether it ultimately translates into corporate profits and real productivity will be key to determining whether this investment cycle can continue.