The presidential policy chief emphasizes the need for data centers in non-capital regions to bolster AI and semiconductor industries
Category: Business
Kim Yong-beom (김용범), the presidential policy chief of South Korea, has outlined a strategic vision for integrating artificial intelligence (AI) and semiconductor industries, proposing the establishment of data centers in non-capital regions to leverage their advantages in power supply and economic development. During a briefing held on June 11, 2026, in Rome, Italy, Kim emphasized the importance of creating a synergistic relationship between semiconductor manufacturing, AI data centers, and physical AI technologies.
This initiative is part of what Kim described as "Project Trinity," which aims to position South Korea as a key player in the global AI supply chain. He explained that semiconductors enable the operation of data centers, which in turn drive physical AI applications, creating a feedback loop that accelerates industrial growth. "Once this circular process begins, the industry will not grow independently but will accelerate like a flywheel," Kim stated.
Kim's remarks come at a time when major AI hubs in the United States, such as Virginia and Dublin in Ireland, are grappling with power shortages. He noted that by situating data centers in areas with abundant energy resources, such as non-capital regions, the burden on transmission networks would decrease, fostering balanced regional development.
He elaborated that data centers could become focal points for local industries and tax revenues, enhancing economic prospects for surrounding areas. "Even though the workforce directly employed by data centers may be small, the surrounding industries will flourish as various partners cluster around these centers," he explained.
Following Kim's announcement, there has been a notable response from political circles, particularly in the Jeolla region, where local governments are eager to attract investments in AI infrastructure. The local political leadership has interpreted Kim's proposal as a nod to the potential for renewable energy sources like solar and wind power available in the region, which could support the energy needs of these facilities.
Kim also stressed the importance of physical AI, asserting that South Korea possesses unique advantages in this field. He pointed out that the country has the capacity to conduct large-scale robotics operations and learning environments, which could be leveraged in the physical AI sector. "The manufacturing competitiveness established during the semiconductor era will also serve as an asset in the physical AI age," he remarked.
Meanwhile, the administration is planning to develop advanced packaging clusters in the Gwangju-Jeonnam region as part of its Southern Innovation Belt project, which aims to integrate various technology sectors. This initiative is expected to create substantial economic impacts, with estimates reaching up to 70 trillion won ($53 billion) from related industrial activities.
In a related development, Woo Sang-ho (우상호), the newly elected governor of Gangwon Province, announced on June 11 that the administrative procedures for constructing an AI data center in Gangneung are underway. The proposed data center is expected to require about 1 gigawatt of power, equivalent to the output of a nuclear power plant.
Woo highlighted that Gangwon's analysis indicates sufficient power supply, with an excess of 7 gigawatts available from local power plants. He stated that the province is actively preparing for the necessary infrastructure adjustments, including water and electricity supply, to support the data center's construction.
As the local government prepares to move forward with the project, it is in discussions with major corporations, including SK Group, to secure investment. The expected sites for the data center include the Okgye Industrial Complex and Anin-ri in Gangdong, which are already equipped with transmission facilities for power supply to the capital region.
Kim's proposals and the responses from local governments indicate a strong push toward establishing South Korea as a competitive player in the rapidly advancing AI sector, leveraging both its existing technological strengths and the strategic placement of new facilities.
As the government continues to refine its strategies, Kim emphasized the need for collaboration among various sectors to realize this ambitious vision. The upcoming discussions among government agencies, businesses, and political leaders are expected to shape the future of South Korea's AI infrastructure and its role in the global economy.
Looking ahead, the government plans to hold a meeting with major corporate leaders later this month to discuss investment strategies and potential projects that could solidify South Korea's position in the AI market.