Republic of Korea has embarked on a close to $1tn aggressive national artificial intelligence and semiconductor investment strategy driven by a coordinated effort between the administration of President Lee Jae Myung and tech giants like Samsung Electronics and SK Hynix.
The government has enacted a special law to create fast-tracked AI investment zones, bypassing standard bureaucratic delays. At the ‘San Francisco AI Declaration’ on July 24, Lee outlined Korea’s AI ambitions for technological cooperation with the US. “I’d like to present a vision for the future of AI and propose global cooperation to make it happen,” he said.
In San Francisco, Korea announced $950bn in new AI initiatives involving Samsung Electronics, SK Group and US tech firms.
SK Group signed deals worth $750bn, including SK Hynix’s partnership with Nvidia valued at more than $500bn. Samsung Electronics signed a memorandum of understanding with Broadcom covering up to $200bn across memory chips, foundry services and advanced packaging.
Lee also separately met with Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, Anthropic CEO Dario Amodei and Broadcom CEO Hock Tan. The deals are the latest moves by US AI firms hoping to lock in supply as demand for chips and computing infrastructure outpaces supply, driving tech companies into closer partnerships with Korea’s semiconductor and memory leaders.
SK Group Chairman Chey Tae-won has said AI customers are seeking far more memory than previously anticipated, pointing to discussions with Nvidia, Anthropic, OpenAI and Broadcom.
On Monday, Korea announced a 5tn won ($3.52bn) semiconductor fund targeting promising chip materials, parts, equipment and fabless companies, as Seoul seeks to accelerate plans for new chip manufacturing hubs across the country. Speaking at the San Francisco AI Summit on July 25, President Lee outlined plans for Korea to serve as a stable supply base for AI infrastructure even amid a global chip shortage. The country has also become an important barometer for the AI stock trade, according to market experts, as swings in Seoul increasingly reflect shifts in technology sentiment that are playing out across markets from Tokyo and Shanghai to Wall Street.
The shift reflects the unusual structure of the Korean market. The KOSPI’s heavy weighting towards semiconductor companies, combined with its sensitivity to foreign capital flows, means changes in expectations for AI investment can be reflected in Korean share prices quickly, and sometimes more sharply than elsewhere.
Korea’s total exports jumped 57.3% year-on-year to reach $275.5bn in the second quarter, driven by the strong performance of technology products, led by semiconductors, according to latest official data. The mind-boggling global AI spending spree is projected to cross $2.5tn in 2026, a 44% increase year-over-year.
President Lee has said Korea would lead the way to a new era of AI in partnership with global technology companies, making available its “dynamic AI ecosystem” to expand the global market for industrial and personal AI use. His semiconductor megaproject initiatives seek to establish Republic of Korea as a trusted production base for advanced AI infrastructure, memory chips and build cooperative networks with diverse nations — extending beyond traditional tech superpowers — to share AI opportunities and foster new global markets.
The projects also aim to bolster domestic frameworks aimed at utilising AI to improve public access to basic rights, education, and healthcare while shielding small businesses and vulnerable demographics from displacement.