Will South Korea's SK Group Invest $87.9 Billion in Domestic Growth by 2028?
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Synopsis
Discover how SK Group is making headlines with its ambitious investment plan of $87.9 billion in South Korea’s domestic market by 2028, focusing on chip manufacturing to cater to the booming AI sector. This strategic move aims to bolster the economy and create thousands of jobs. Stay tuned for more details.
Key Takeaways
- SK Group to invest 128 trillion won in the domestic market.
- Focus on chip manufacturing for AI demand.
- Four semiconductor fabs planned in Yongin.
- Job creation of 14,000-20,000 positions annually.
- Collaboration with Amazon Web Services for an AI data center.
Seoul, Nov 16 (NationPress) The South Korean conglomerate SK Group announced on Sunday its plan to invest a remarkable 128 trillion won ($87.9 billion) into the domestic economy by 2028, primarily targeting chip manufacturing to address the rising demand in artificial intelligence (AI) sectors.
This chip-to-chemical company intends to construct four major semiconductor fabrication facilities over the coming years in its key Yongin chip cluster, located south of Seoul. The investment amount may potentially escalate to as much as 600 trillion won.
The announcement was made after SK Group's Chairman Chey Tae-won presented these plans during a meeting with business leaders and President Lee Jae Myung, aimed at fostering domestic investments by major corporations following a recent trade agreement with the United States, as reported by Yonhap news agency.
During this meeting, Chey indicated that the investments might reach approximately 600 trillion won for the Yongin chip complex alone, driven by the surging demand for AI memory chips, including high-bandwidth memory.
SK Group is committed to adjusting the pace of construction for the planned fabs based on chip market demand and conditions, progressively expanding their investments in phases.
SK hynix Inc., the semiconductor manufacturing subsidiary of the group, is partnering with the government to establish the "Trinity Fab" at the Yongin complex, a venture valued at 860 billion won, aimed at enhancing the domestic semiconductor component ecosystem.
This facility will function as an open platform and a non-profit foundation for component manufacturers, research institutions, and startups.
SK Telecom Co., the mobile network operator, in conjunction with SK Broadband Co., is collaborating with Amazon Web Services to develop an AI data center in the southeastern city of Ulsan, expecting to commence operations in 2027.
“We have consistently maintained domestic hiring of over 8,000 employees annually,” Chey remarked during the meeting. “We aim to create between 14,000-20,000 jobs each year.”
Point of View
I recognize the importance of SK Group's substantial investment in domestic growth and technology. This initiative not only reinforces South Korea's position as a leader in semiconductor manufacturing but also promises job creation and economic stability. Such visionary moves are crucial for fostering innovation and maintaining competitiveness on a global scale.
NationPress
16/11/2025
Frequently Asked Questions
What is the total investment amount SK Group plans to make?
SK Group aims to invest 128 trillion won ($87.9 billion) by 2028.
What sectors will SK Group focus on with this investment?
The primary focus will be on chip manufacturing to cater to the growing demand in artificial intelligence (AI) fields.
How many jobs does SK Group plan to create?
They plan to generate between 14,000-20,000 jobs annually.
Where will the semiconductor fabs be constructed?
The fabs will be built in the Yongin chip cluster, located south of Seoul.
What is the expected operation year for the AI data center?
The AI data center is set to begin operations in 2027.
