South Korea targets Honam region for major AI data-center and industrial push

At the Jeonnam-Gwangju Integrated Special Metropolitan City Semiconductor and AI Transformation Global Forum, Lee Min-woo outlined a regional development plan that ties AI computing capacity to sector-specific growth in Honam. The government will combine three flagship projects—semiconductors, physical AI and AI data centers—with industries tailored to each locality, including future power systems, autonomous driving and precision medicine.

SK is slated to invest 70 trillion won in a 1-gigawatt AI data center, while Samsung SDS plans a 210-megawatt facility costing roughly 17 trillion won. The strategy seeks to give Korean firms a domestic venue for training and running AI models and to spur local suppliers of power, cooling and other equipment. Honam’s designated growth zones also cover next-generation vaccines and advanced semiconductor manufacturing. Lee framed the initiative as a test of whether Korea can break out of low-growth trends through AI-driven industrial transformation.