Government Steps Up Support for Southwestern Semiconductor and AI Shipbuilding Projects

South Korea’s Industry Minister Kim Jung-Kwan. (The Ministry of Trade, Industry and Energy) The government is accelerating efforts to develop South Korea’s southwestern region into a semiconductor and artificial intelligence (AI) cluster powered by renewable energy, backed by a large-scale investment plan worth 800 trillion won, or approximately $598.85 billion. It plans to provide intensive support for critical infrastructure, including land and power supply, to ensure corporate investments proceed on schedule, while integrating AI into key regional industries such as shipbuilding to strengthen their competitiveness. Minister of Trade, Industry and Energy Kim Jung-kwan visited Gwangju and Mokpo on Oct. 12, launching a series of on-site visits aimed at developing new growth engines in the southwestern region. The visits follow the government’s “Five-Pole, Three-Special Growth Engine Development Plan,” announced in August, and were intended to assess progress in supporting large-scale corporate investment and the AI transformation (AX) of regional industries. Kim first visited Gwangju Military Airport, a candidate site for the southwestern region’s semiconductor industrial complex, where he reviewed progress with relevant organizations, including the Jeonnam-Gwangju Integrated Special City, the Republic of Korea Air Force and Korea Land and Housing Corp. Discussions covered pending issues such as the temporary relocation of the military airport, designation of the industrial complex and the timeline for site development. Officials also reviewed plans to secure the electricity and water supplies essential for semiconductor manufacturing, along with measures to improve public acceptance of the project. In the afternoon, Kim chaired a Shipbuilding M.AX Alliance strategy meeting in Mokpo, where concrete measures to advance AI transformation in manufacturing were finalized. At the meeting, HD Hyundai Samho and Daea Industries pledged a combined 400 billion won investment to establish AI-powered lighthouse factories at shipyards. The government will also pursue the “Three Flagship Projects for Shared Growth in Shipbuilding M.AX,” aimed at extending the AI transformation gains made by major shipyards to smaller regional shipbuilders and marine equipment suppliers. The government also unveiled a policy framework to support technology development. Its first basic plan for the development and commercialization of autonomous vessels will support technological development and commercialization over the 10-year period from 2026 to 2035. Kim then visited HD Hyundai Samho’s Yeongam Shipyard to observe collaborative robots, quadruped robots and an AI-based process monitoring platform in operation on the shop floor. The Ministry of Trade, Industry and Energy plans to expand its on-site reviews to other regions nationwide, starting with the southwestern region. On Oct. 14, officials will discuss measures to foster the bio and medical device industries in the Gangwon region. On Oct. 28, they will attend the opening ceremony of a battery testing and demonstration center in the Daegyeong region. The ministry also plans to hold a mega-project review meeting in the Chungcheong region later this month to hear about companies’ investment challenges and review the status of local government permits and approvals. “We will ensure that the investment foundations for the semiconductor mega-project are established without delay so that investment can proceed on schedule,” Kim said. “In the shipbuilding industry, we will also focus on dramatically improving productivity and working conditions by applying AI to design and production processes.”