South Korean President Lee Jae-myung bows 90 degrees to the leaders of two major conglomerates, calling Lee Jae-yong and Chey Tae-won "national heroes"! Samsung Electronics and SK Hynix stocks surge
On June 29, South Korean President Lee Jae-myung bowed 90 degrees to Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won, thanking them for their massive investment plans.
Lee Jae-myung presided over the "Korea's Three Major Super Projects Briefing" at the Blue House, where Lee Jae-yong and Chey Tae-won announced major investment plans for the semiconductor, artificial intelligence, and data center sectors, with reports noting the investment amount exceeds tens of thousands of trillion Korean won. Lee expressed his gratitude and referred to them as "national heroes," stating that they had made difficult decisions.
However, it was reported that this project has sparked controversy in the South Korean political scene, with critics arguing that the government is in fact pressuring companies to make large-scale investments.
On June 29, the South Korean government announced its largest-ever investment plan for the semiconductor and artificial intelligence industries, positioning semiconductors, physical AI, and AI data centers as the "three pillars" of Korea's industrial upgrade, aiming to push Korea into the ranks of "leading AI revolution nations."
The government revealed that Samsung and SK Hynix will invest about 800 trillion Korean won in the southwest region to build four chip factories, with the goal of doubling DRAM production capacity within five years and quadrupling the global memory market. At the same time, Korea plans to invest over 1,000 trillion Korean won in the AI data center sector by 2035, and 81 trillion Korean won in constructing a chip packaging factory in the Chungcheong region.
At the project launch event, Samsung Chairman Lee Jae-yong announced a total domestic investment of 2,655 trillion Korean won (approximately 11.65 trillion RMB). Of this, more than 2,000 trillion Korean won will be invested in the Pyeongtaek and Yongin semiconductor clusters and accelerate the construction of the Yongin complex. In addition, SK Group Chairman Chey Tae-won announced that the group will invest a total of 2,100 trillion Korean won (about 9.2 trillion RMB) in AI and semiconductors, among which SK Hynix will invest 1,100 trillion Korean won to expand semiconductor capacity and alleviate AI memory shortages.
Given that the planned Korean chip industry cluster is expected to consume a large amount of electricity, the South Korean government is considering shortening the construction period of nuclear power plants. Presidential Chief of Staff Kang Hoon-sik told reporters on Monday: “As everyone knows, building a nuclear power plant typically takes 9 to 10 years. We will look into ways to shorten this construction period.” Kang stated that the specific relevant plans will be incorporated into the long-term power supply and demand roadmap to be released soon.
On June 30, shares of Samsung Electronics and SK Hynix surged. As of this announcement, Samsung Electronics shares were up more than 5%—over 180% year to date—and SK Hynix was up more than 3%, more than 300% for the year.
Source: National Business Daily
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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