South Korea policy chief defends 10-year AI strategy

July 6 (Asia Today) -- South Korea's presidential policy chief said Monday the government's three mega projects in semiconductors, artificial intelligence data centers and physical AI should be treated as a 10-year national strategy that continues regardless of changes in government.

Kim Yong-beom, President Lee Jae Myung's chief of staff for policy, said the projects are not limited to the remaining four years of the Lee administration and should be carried forward by future governments.

Kim made the remarks in response to concerns from some political circles that the projects could favor certain regions or be scaled back after a change in administration.

"This is not a project that ends with the remaining four years of the Lee Jae Myung government," Kim said. "It is a project that must continue under the next government as well."

Kim said the strategy is tied to long-term investment plans by Samsung Electronics and SK hynix, South Korea's two largest semiconductor companies. He said the government's role is to support infrastructure such as electricity, water and land so the country can maintain a stable supply of memory chips in the AI era.

"That is also the responsibility of Samsung Electronics and SK hynix and the responsibility of our country's top two companies," Kim said. "If memory is not supplied on time, the AI revolution cannot gain speed."

Kim said delays in supply would drive up prices and benefit only those able to buy high-priced chips.

"I believe it is South Korea's responsibility to support electricity and water so memory can be supplied in large quantities without delay," Kim said.

Kim said the investments were based on real demand projections by the companies.

"The two semiconductor companies announced their plans based on demand forecasts for the next three, five and 10 years," Kim said. "They also have plans to build in Yongin and the Seoul metropolitan area, and because they have long-term demand projections, the announcements were based on actual demand."

Kim said strong demand has led companies to move up completion schedules by eight to 12 years.

"Because these are demand-based plans, they are projects that must be carried out regardless of the government," Kim said.

Kim also raised the need to build semiconductor fabrication plants outside the Seoul metropolitan area.

He said a fabrication plant may require 1.5 million pyeong of land, or about 5.3 million square feet, and as much as 2 million pyeong, or about 71.2 million square feet, when suppliers are included. He said securing such sites is difficult.

"It may look strange from the perspective of a system concentrated in the capital area, but in other countries industrial bases are spread nationwide," Kim said. "That is true in Japan and Taiwan. Only we are concentrated in a narrow capital area."

Kim said broader regional investment is not only a matter of balanced development but also a macroeconomic strategy.

He said social consensus is important because the gap between regions that benefit from major projects and those that do not could widen.

"The whole country needs to be integrated," Kim said. "Rather than moving to either extreme, we need efforts to present policy from the middle and lead consensus."

Kim also warned against excessive liquidity flowing into real estate as the semiconductor boom and stock market gains increase investor interest.

"The worst outcome is for liquidity to flow into real estate," Kim said. "If it flows into assets in certain areas of the capital region, there can be very severe side effects."

Kim said it may be acceptable for money to flow into stocks, but real estate speculation can raise both jeonse deposits and monthly rents.

"For some people it is an investment target, but for most people housing is a basic right," Kim said.

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260706010002184

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This story was originally published July 6, 2026 at 5:34 PM.