Key facts
- South Korea plans to enact a special law this year to designate special zones for AI investment projects.
- The law aims to accelerate the implementation of large-scale AI initiatives, including a semiconductor cluster and AI data centers.
- Samsung Electronics and SK hynix have pledged a combined 800 trillion won (US$564.9 billion) for the semiconductor cluster.
- The special law will streamline licensing, approval procedures, and infrastructure development.
- A military airport in Gwangju is slated for transfer by 2028 to facilitate the chip cluster project.
South Korea's government plans to enact a special law this year to designate special zones for artificial intelligence (AI) investment projects, aiming to accelerate their implementation. Presidential chief of staff Kang Hoon-sik announced the plan following a meeting presided over by President Lee Jae Myung to assess progress on the "three megaprojects." These initiatives, announced in late June, outline large-scale investments in a semiconductor production cluster, physical AI infrastructure, and AI data centers in regional areas.
Under the chip cluster project alone, Samsung Electronics Co. and SK hynix Inc. have pledged a combined 800 trillion won (US$564.9 billion), marking the largest investment plan to date for the southwestern city of Gwangju and the surrounding Honam area. President Lee urged the government to expedite these projects, emphasizing the need for deregulation and simultaneous administrative steps to ensure rapid execution. He stressed that the country must move with "the speed of lightning."
The envisioned special law will help streamline licensing and approval procedures, as well as environmental impact assessments. It will also enable the swift establishment of infrastructure for electricity and water supplies, and improve living conditions for workers, including transportation, housing, and education. Lee also instructed officials to transfer the functions of a military airport in Gwangju to temporary facilities by 2028 to facilitate its transformation into a semiconductor production hub. The government intends to distribute growth pillars across the country, making regional areas new centers for future industries.