Samsung Group will on Monday announce a 1,000 trillion won ($648 billion) domestic investment plan spanning the next decade, according to multiple South Korean media reports, in what would be the largest single spending commitment by a company in the country’s history. The package, to be unveiled at a meeting with President Lee Jae Myung, includes roughly 300 trillion won for a new semiconductor complex in the southwest, more than 350 trillion won for AI infrastructure such as data centres, and additional sums for batteries and displays. Samsung shares fell 5.3% on Friday amid a broader semiconductor selloff, though analysts in Singapore noted the decline was driven by global demand concerns rather than the impending capital expenditure announcement.

The investment is designed to harness explosive demand for high-bandwidth memory chips used in AI data centres, a boom that has propelled both Samsung and rival SK Hynix to record profits. With the capital region around Seoul running short of space, power and water for further expansion, the government is pushing to accelerate projects originally slated for the 2040s into the mid-2030s. Presidential policy adviser Kim Yong-beom said this week that AI-driven memory demand had exceeded expectations, making capacity expansion outside the capital an operational necessity as much as a political priority.

Viewed from Seoul, the plan is also a centrepiece of President Lee’s agenda to rebalance a national economy in which the capital area accounted for 52.8% of gross regional product in 2024. Opposition lawmakers have accused the government of steering investment toward the southwest, a ruling-party stronghold, ahead of local elections. The debate has stirred anxiety in established chipmaking cities such as Icheon, where community leaders fear production cuts if new clusters are built elsewhere. Lee’s approval rating has fallen to 51%, the lowest since his inauguration, according to Gallup Korea, adding political urgency to the mega-project rollout.

SK Hynix is expected to present its own expansion plans at the same Monday briefing, with Chairman Chey Tae-won having signalled an intention to double capacity over the next five years. The presidential office has confirmed it will announce three “mega-projects” covering semiconductors, AI data centres and robotics, jointly outlined by government and industry. The precise timeline and phasing of Samsung’s decade-long commitment will be the immediate focus for markets and regional governments when details are released.