South Korea to Invest 4.2 Trillion Won! Deregulation to Boost Three Strategic Core Industries Including Semiconductors and AI

South Korea's Ministry of Economy and Finance announced on Thursday (13th) that it will ease a series of regulations, including administrative procedures, to support three major industrial projects centered on semiconductor and AI infrastructure. The three projects focus on semiconductors, physical AI facilities, and AI data centers, which are considered crucial for advancing the structural transformation of South Korea's economy.

Finance Minister Koo Yun-cheol unveiled the plan during a meeting with ministers responsible for economic affairs. The measures are expected to drive a total investment of 4.2 trillion won (approximately $29.6 billion).

The ministry stated that the initiative aims to address practical obstacles faced by businesses when making investments, particularly for projects that are ready to begin construction but have been stalled due to regulatory constraints.

Specific measures include revising building permit regulations. For example, in the semiconductor complex currently under construction in Yongin, south of Seoul, the existing system requires companies to amend their overall building permit if they add new structures during construction. The new rule allows separate approval processes for new buildings within the complex, removing barriers for a 2.5 trillion won investment.

Additionally, the South Korean government will open national-level industrial complexes in Gumi and Pohang in the southeastern region to battery recycling enterprises, in addition to existing secondary battery manufacturers. This is expected to attract an additional 100 billion won in investment.

Analysts point out that the government's regulatory relaxation signals a shift from 'post-hoc regulation' to 'preemptive support,' aiming to secure a strategic position in the global semiconductor and AI supply chains.