South Korea plans to invest 2.6 trillion won in its semiconductor industry as part of the 2027 national budget, which is expected to exceed 800 trillion won (approximately $530 to $592 billion), representing a 10-12% increase from 2026. This allocation is part of President Lee Jae Myung’s strategy to transform exceptional chip-related tax revenues, with Samsung and SK Hynix’s combined operating profits projected to exceed 600 trillion won in 2026, into permanent industrial infrastructure through a new mechanism called the Future Response Fund. On June 29, 2026, Seoul launched three mega-projects totaling roughly 800 trillion won (approximately $518 billion), backed by Samsung Electronics, SK Hynix, and regional governments, aiming to double South Korea’s memory chip production capacity within five years. The AI data center component includes an initial 8.4 GW phase supported by approximately 550 trillion won in investment.
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