Ruling Party, Government Agree to Boost Chip, AI Investment Projects

SEOUL, July 13 (Yonhap) -- The ruling Democratic Party (DP) and the government agreed Monday to step up support for the government's recently unveiled large-scale chip cluster and artificial intelligence (AI) investment projects while pledging to swiftly push through related legislation.

Late last month, the government unveiled its "three mega projects" initiative, envisioning a national transformation driven by semiconductors, physical AI and AI data centers that would require a combined investment of 4,755 trillion won (US$3.16 trillion).

Under the initiative, the government envisions the creation of two memory chip fabrication plants by Samsung Electronics Co. and two fabs by SK hynix Inc. in the southwestern city of Gwangju and the surrounding Jeolla provinces.

"As the ruling party has already set up a special committee dedicated to supporting the three mega projects, we will provide active legislative and budgetary support," Han Byung-do, the DP's acting leader, said during a consultative meeting between government officials and ruling party lawmakers.

Han added that the DP will seek to pass by the end of the year a special act on "mega special zones" aimed at easing regulations to better support the initiative.

During the meeting, Deputy Prime Minister and Finance Minister Koo Yun-cheol also outlined the government's growth strategy for the second half of 2026, centered on measures to boost the country's economic growth and address structural challenges, such as income inequality.