South Korea unveils megagrowth plan with AI expressway and energy reform

President Lee’s administration is launching an ‘AI expressway’ backed by a 100 trillion-won fund plus major energy grid upgrades to propel South Korea’s growth.
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President Lee Jae-myung has announced a sweeping national megagrowth plan that positions South Korea at the forefront of AI and energy transformation.

The initiative includes the creation of an ‘AI expressway’, starting with the Ulsan AI data centre, underpinned by bold tax incentives and regulatory reforms to attract private sector investment. Complementing this is a proposed investment of 100 trillion won to accelerate AI innovation, next-generation semiconductors, and the development of AI infrastructure and innovation zones.

On the energy front, the government has launched a dedicated task force to develop an AI-powered next-generation power grid. This ‘electric highway’ aims to integrate AI technology into renewable energy distribution and grid modernisation without needing vast new infrastructure.

Complementing the power grid overhaul, Korea Electric Power Corp. (KEPCO) plans to invest around 73 trillion won by 2038 to expand transmission lines and upgrade the power infrastructure serving major semiconductor complexes.

Together, these measures form a robust blueprint that aligns digital transformation with energy security, aimed at keeping South Korea globally competitive while responding to rising electricity demands from AI and other tech industries.

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