In an effort to seize the initiative in the global competition in semiconductors and artificial intelligence (AI), the South Korean government is trying to break the deadlock through disruptive energy policies. Today, Kim Seong-hwan, Minister of Environment, announced that the country will comprehensively restructure its power policy framework, introducing a differentiated electricity pricing system by region, and establishing a new "AI data center special electricity rate plan."

The core of this policy aims to ensure that key infrastructure such as semiconductor factories and AI data centers can stably access low-cost power support. The government hopes to reduce electricity costs in the Chungcheong, Yeongnam, Honam, and Gangwon regions, thereby guiding large AI data centers and semiconductor clusters to spread to local areas, and enhancing companies' willingness to invest in local regions.

Two Pillars Coexist, Energy Policy Undergoes Major Transformation

According to officials, the current technological competition has evolved into an "AI era where power is king," and the importance of energy security has been elevated to an unprecedented level. Kim Seong-hwan emphasized that the production of semiconductor chips, as well as the operation of AI data centers and physical AI systems, all rely on a massive and stable power supply.

Based on this understanding, chips and power have been viewed by the South Korean government as two pillars of national core competitiveness. To prevent power supply from becoming a bottleneck for technological development, South Korea's energy policy will undergo a major transformation, shifting from traditional passive assurance to active industrial strategic incentives.

Clear Power Supply Planning, Massive Electricity Accurately Delivered to Clusters

Along with the introduction of the special electricity rate, the South Korean government also announced highly specific supporting power and water supply security plans. The Yeoju Semiconductor Cluster will receive approximately 1500 megawatts of power supply and 1.5 million tons of water per day, while the Southwest Circle cluster will also be equipped with a power supply capacity of 630 megawatts.

Regarding the AI computing infrastructure that is most concerned by society, the government has pledged to provide more than 800 megawatts of power on time and in full by 2029. This massive and accurate delivery of electricity will ensure that South Korea is never constrained by power shortages when building efficient and large-scale AI infrastructure.