Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
President ramps up regional growth blueprint, putting AI, chips at center
President Lee Jae Myung presides over a Cabinet meting at Cheong Wa Dae in Seoul, Tuesday. Yonhap
By Yi Whan-woo
Lee broadens private sector outreach with Samsung, SK
President Lee Jae Myung will introduce a sweeping growth strategy next week to spur balanced regional development in collaboration with the private sector, according to multiple officials from Cheong Wa Dae and business circles, Tuesday.
The strategy will be presented at a public briefing on Monday set to be attended by business leaders from Samsung, SK, Hyundai Motor, LG and other major conglomerates. The plan is expected to serve as the Lee administration's first concrete blueprint for fostering artificial intelligence (AI), semiconductor and other cutting-edge industries beyond the Seoul metropolitan area, under a broader national transformation agenda for Lee's second year in office.
The conglomerates are likely to outline domestically focused investment plans tied to their core businesses, including AI, semiconductors, data centers, future mobility, batteries and advanced materials.
The government is expected to announce a package of support measures, including tax incentives, regulatory easing and assistance in securing electricity, water supplies and skilled workers for regional growth projects.
“The briefing is expected to go beyond a routine meeting with business leaders and serve as a public presentation of the Lee administration's second-year plans for balanced regional development,” a Cheong Wa Dae official said.
The official pointed to Lee's pledge made during a nationally televised news conference earlier this month marking his first year in office since taking power in June 2025.
At the time, Lee said he would soon unveil a large-scale investment project aimed at bringing about “major transformation” in the country's growth strategy.
“While his first year in office focused on restoring democracy and stabilizing livelihoods, the president is now shifting toward generating economic momentum by linking regional development with an industrial overhaul centered on AI and semiconductors,” the official added.
To better shape the government's plans, Lee has been holding one-on-one meetings with conglomerate leaders in advance to hear their views.
He is expected to meet Samsung Electronics Chairman Lee Jae-yong on Thursday, after having already met SK Group Chairman Chey Tae-won on Friday, just a day after returning from a 10-day diplomatic trip to Europe.
Samsung Electronics is said to be coordinating domestic investment plans focused on semiconductors and AI in the Honam region of southwestern Korea.
SK Group has been exploring regional investments in AI semiconductors and data centers, amid speculation that its chipmaking affiliate, SK hynix, may play a central role in the government's regional development drive.
The Lee administration has reckoned that the continued concentration of talent and infrastructure in the capital region could accelerate regional decline and the outflow of young people.
To address the problem, the government has been considering the creation of so-called “mega-special zones" around regional cities and industrial hubs, alongside improvements to power grids, water supplies, transportation, education and living conditions to make corporate investment more attractive.
Business observers, meanwhile, say the success of the initiative will depend on whether the projects can actually be implemented, not on how much companies invest.
“Although previous governments have encouraged companies to invest outside the capital region, many have been hesitant because of labor shortages, delays in approvals, insufficient power supplies and underdeveloped supplier networks,” a corporate analyst said.