S. Korea calls for aggressive investment in AI infrastructure
Seoul, June 24
The presidential policy chief said on Wednesday that the advent of a new artificial intelligence era requires new state infrastructure, calling for aggressive investment to bolster the country's potential growth trajectory in AI.
Kim Yong-beom, presidential chief of staff for policy, made the point at a discussion hosted by the Kwanhun Club, a senior journalists' association, amid a stock market boom in South Korea driven by record profits and stock gains by AI-related chipmakers, reports Yonhap news agency.
"If the ongoing semiconductor and AI supercycle constitutes the beginning of a structural transformation that will raise South Korea's potential growth trajectory, as well as a reorganisation of its industrial structure, our response should be different," Kim told the meeting.
He said the new AI era requires new state infrastructure to support the drive, adding that the government "needs to lay the growth foundation through preemptive investment that is aggressive enough to transform South Korea's industrial map."
The policy chief, in particular, cited the need for massive amounts of electricity and land, as well as a new industrial ecosystem, saying that regional areas could provide a new industrial landscape featuring data centres, future electricity networks and other infrastructure.
He stated that the capital region currently has no more capacity for land, electricity or water, suggesting that the government may seek to build an additional semiconductor cluster in a regional area.
A semiconductor cluster is currently under construction in Yongin, south of Seoul, to serve as a key production hub for advanced semiconductor products of major semiconductor companies, such as Samsung Electronics Co. and SK hynix Inc.
"Discussions (on the construction of an additional cluster) are nearing the final stage," Kim said. "If they are finalised, (the government) would prepare an occasion to explain it ... to the public."
Kim argued the new AI era also requires social discussions on how to utilize excess tax revenues, as well as policies addressing social and labor issues. "We have to look into how the fruits of growth in the AI era are shared," he said.
"AI could enrich a country, but there is no guarantee that all people could equally enjoy the benefits," added Kim.
This year, South Korea's economy is expected to register a real growth rate of 3 percent from the previous year, while the nominal growth rate may reach the 10-percent range, the policy chief said.
He also cited the country's annual per capita national income reaching US$40,000, record-high corporate profits and stock market rallies as positive signs for the economy.
The official, however, voiced concerns over the continued downward trend of the Korean won against the U.S. dollar, as well as instability in the real estate market, describing them as "new tasks" to be addressed.
— IANS
Reader Comments
Interesting that Kim is worried about how AI benefits are shared. In India, we already see the digital divide — rural areas lacking internet, while cities zoom ahead. Korea is thinking about this upfront, which is smart. They're even planning clusters in regional areas to distribute growth. We need similar foresight in our AI policy. 🇮🇳
The part about needing massive amounts of electricity and land is crucial. India's power infrastructure is already strained in many states. If we try to build AI clusters without upgrading our grid, we'll face blackouts. South Korea's approach of using regional areas for data centers and future energy networks is a model we should study carefully.
"Preemptive investment aggressive enough to transform South Korea's industrial map" — that's the kind of vision we need here. Korea has Samsung and SK hynix driving innovation. We have Tata, Infosys, and many others, but the ecosystem for semiconductor and AI clusters is still fragmented. Social discussions on tax revenues and labor issues? We could learn from that transparency.
I'm impressed by Kim's realism — he acknowledges that AI could enrich a country without guaranteeing equal benefits. That's a mature perspective. Too often, governments just hype AI without discussing distribution. Also, the concern about the Korean won vs USD and real estate market instability shows they're not ignoring economic side effects. Good governance in action.
One concern: Kim talks about building an additional semiconductor cluster, but what about environmental impact? Data centers consume huge amounts of water for cooling, and India already faces water scarcity. Korea's plan
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.