As the Lee Jae-myung administration has presented a blueprint to nurture Korea into a global artificial intelligence (AI) hub through the "San Francisco AI Declaration," calls are emerging that the pace of executing three mega projects must be dramatically accelerated to make it a reality.
According to industry sources on the 26th, Samsung Electronics (005930.KS) and SK hynix (000660.KS) are pouring companywide resources into expanding their semiconductor production capacity to fulfill the San Francisco AI Declaration.
Samsung Electronics has decided to invest 2,030 trillion won in the Pyeongtaek and Yongin clusters and 400 trillion won in the Honam region. The startup date for the first semiconductor plant (fab) in Yongin has been set for the second half of 2029, earlier than originally planned. SK hynix (000660.KS) also plans to invest a total of 1,100 trillion won, bringing forward the target completion of the Yongin cluster to 2033, 12 years earlier than the previous target of 2045.
But behind the dazzling investment plans lie a host of practical hurdles to overcome. The success of building advanced fabs in Yongin and Gwangju depends on the timely construction of essential infrastructure such as land compensation, electricity and ultrapure water (purified water for semiconductors). The reality is that building transmission networks to draw in astronomical amounts of power is frequently held back by opposition from local residents and permit delays by local governments. There are also strong concerns that even if fabs are built, they could end up half-baked without preemptive measures to secure skilled personnel to operate them and to strengthen advanced research and development (R&D) capabilities.
Another pressing issue is finalizing the investment structure and operating entity of the national AI computing center, where the public and private sectors jointly secure high-performance graphics processing units (GPUs). The power supply and permit bottlenecks blocking the expansion of AI data centers, which consume enormous amounts of power, must also be resolved quickly. The AI Basic Act, which would settle the "AI for All" policy by resolving computing costs and personal information protection issues and clarify standards such as those for high-impact AI, is also cited as an urgent priority.
The industry is strongly demanding infrastructure expansion and the elimination of regulations. According to a survey by the Korea Enterprises Federation, national advanced strategic technology companies cited "exemption and deferral of key regulations (42.9%)" and "timely construction of essential infrastructure such as power and water (36.5%)" as the top priorities for the mega special zone system.
In particular, a majority (50.6%) of companies pointed to "flexibility in R&D personnel working hours," such as exceptions to the 52-hour workweek or the introduction of a white-collar exemption, suggesting that groundbreaking special exemptions from labor regulations are desperately needed.
