Samsung, SK lead Chungcheong investment push

Samsung Electronics, SK hynix, Celltrion and other major companies will invest a combined 392 trillion won in semiconductor, display, battery and biopharmaceutical projects across the Chungcheong region. The announcement gives concrete shape to the government's plan to build advanced industrial hubs beyond the capital region, following the rollout of a similar initiative for the Honam region last month under its "Three Mega Projects for a Great Leap Forward." President Lee Jae-myung said the government "will not squander this critical opportunity to align balanced regional development with next-generation industrial growth," pledging to provide every possible form of support to help companies carry out their investments.

The investment plans were announced Thursday during the National Vision Report on Advanced Industry Development in the Chungcheong Region in Asan, South Chungcheong Province. Samsung Electronics will invest 140 trillion won in semiconductors, including high-bandwidth memory (HBM) fabrication and advanced packaging, as well as OLED displays. SK hynix committed 100 trillion won to expand semiconductor production, including NAND flash and advanced packaging. Celltrion will invest about 2 trillion won in biopharmaceutical manufacturing facilities. The plan also includes 150 trillion won in investment for artificial intelligence data centers.

Lee said the three mega projects should not be viewed as competing regional initiatives. "The priorities before us are balanced national development, easing the concentration in the capital region and creating growth centered on local communities," he said. "Our role is to help companies invest where they can compete most effectively. This is not about handing out favors."

Lee also rejected suggestions that the government had leaned on businesses to secure the investment commitments. "No company relocates because it is pressured into doing so," he said. "Some still cling to the outdated assumption that I persuaded Samsung Electronics Executive Chairman Lee Jae-yong through political pressure. That is simply not how investment works. It is impossible." Speaking at a meeting with senior presidential aides later the same day, Lee described the projects as "not a handout to the provinces, but the only path for South Korea to emerge as the ultimate winner of the Fourth Industrial Revolution and a historic decision for future generations."

Samsung Electronics Chairman Lee Jae-yong said bold investment has created a virtuous cycle in which corporate growth drives regional prosperity and, ultimately, national competitiveness. He said the Chungcheong region has already demonstrated the strength of that model. "In the AI era, competitiveness will be determined by the materials and components that power AI systems," he said. "That makes these investments directly linked to Samsung's future. The global economy is entering a defining moment."

To back the investment drive, the government plans to launch a "Seven Investment Support Booster Program" combining fiscal support, financing, regulatory reform, technology assistance, tax incentives, workforce development and infrastructure. It also plans to designate "mega special zones" where overlapping regulations will be eased to speed up large-scale industrial investment.


Kyu-Jin Shin newjin@donga.com