South Korea Policy Chief Urges New AI Infrastructure and Regional Chip Cluster

Kim Yong-beom, presidential chief of staff for policy, said Wednesday that South Korea requires new state infrastructure to navigate the new artificial intelligence era and called for aggressive investment to strengthen the country's potential growth in AI.

Speaking at a discussion hosted by the Kwanhun Club in Seoul, Kim noted that the ongoing semiconductor and AI supercycle marks the start of a structural transformation. He said the government needs to lay the growth foundation through preemptive investment aggressive enough to transform the industrial map.

Kim pointed to the need for massive amounts of electricity and land, as well as a new industrial ecosystem. He said regional areas could provide a new industrial landscape featuring data centers and future electricity networks, noting that the capital region has no more capacity for land, electricity or water.

The policy chief suggested the government may seek to build an additional semiconductor cluster in a regional area.

Discussions on the construction are nearing the final stage, he said, and if finalized, the government would prepare an occasion to explain it to the public. A semiconductor cluster is currently under construction in Yongin, south of Seoul, to serve as a key production hub for advanced semiconductor products of Samsung Electronics Co. and SK hynix Inc.

Kim also argued that the new AI era requires social discussions on how to utilize excess tax revenues, as well as policies addressing social and labor issues. He said the fruits of growth in the AI era must be shared, noting that while AI could enrich a country, there is no guarantee all people could equally enjoy the benefits.