South Korea Plans Semiconductor and AI Projects Needing 24.7 GW Extra Power, with Nuclear Timeline Unclear

President Lee Jae Myung, Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won announced plans on June 29 for mega projects focused on semiconductors, AI data centers and physical AI at Cheong Wa Dae in Seoul. The initiative includes a new semiconductor cluster for Samsung Electronics and SK hynix in Gwangju, with fabrications already under construction in Yongin south of Seoul.

Government and industry estimates project that the southwestern cluster and AI data centers will require approximately 24.7 GW of additional generation capacity.

The Yongin cluster is projected to need around 15 GW. These figures sit on top of the 11th basic plan for long-term electricity supply and demand, which forecasts peak demand of 129.3 GW by 2038. The government aims to begin operating the first fabs in the southwestern region around 2030.

Saeul nuclear reactors No. 3 and No. 4 remain under construction in Ulsan. Presidential chief of staff Kang Hoon-sik said the government will examine ways to shorten the normal nine-to-10-year construction period for new nuclear plants.

One proposal under discussion calls for four additional reactors at the existing Hanbit plant in Yeonggwang and the Saeul plant in Ulsan. Last month KHNP selected Yeongdeok as a candidate site for two large-scale reactors totaling 2.8 GW and Busan's Gijang County for a 700-megawatt small modular reactor.

Vice Industry Minister Moon Shin-hak said last week the government could initially rely on renewable energy, LNG plants and energy storage systems before additional nuclear capacity comes online.