Samsung and SK Group Plan to Invest $130 Billion Over Ten Years in AI and Semiconductors, Stock Prices Plunge at Opening

BlockBeats News, June 29th, South Korean media revealed that Samsung Group and SK Group are preparing a 10-year capital expenditure plan with a total size of approximately 200 trillion Korean won (about $1.3 trillion), to be included in President Lee Jae-myung's "Three Major Leaps Project" industrial strategy framework, expected to be officially announced to the presidential office by the two group leaders on Monday afternoon.

The funds will focus on semiconductor capacity expansion, AI data centers, and the physical AI field. The two groups respectively plan to build 4 to 5 chip fabs in Gwangju and expand packaging and NAND capacity in Chungcheongbuk-do and Chungcheongnam-do. However, the huge investment plan did not boost market confidence. On Monday, the South Korean KOSPI index widened its decline to 3%, Samsung Electronics fell 5%, SK Hynix fell 4.5%, and the KOSDAQ futures triggered a circuit breaker as they rose by 6%.

Analysts believe that investors have doubts about whether AI capital expenditure can bring actual returns. A China International Capital Corporation research report also pointed out that the leverage in the Korean stock market has reached a historical high, and margin call pressure has increased recently, highlighting the market's volatility risks.