Samsung and SK Group plan to invest 1.3 trillion dollars over ten years betting on AI and semiconductors, and their share prices both plummeted at the market open.

BlockBeats news. June 29. South Korean media disclosed that Samsung Group and SK Group are preparing a ten-year capital expenditure plan with a total scale of about 20,000 trillion won (approximately $1.3 trillion). The plan is set to be included in President Lee Jae-myung’s “Three Major Leap Projects” industrial strategy framework. It is expected to be formally announced to the Blue House on Monday afternoon by the heads of the two groups.

The funding will be focused on expanding semiconductor capacity, AI data centers, and the physical AI field. The two groups respectively plan to build 4 to 5 wafer fabs in Gwangju, and to expand packaging and NAND capacity in North and South Chungcheong Provinces. However, the massive investment plan has not boosted market confidence. On Monday, South Korea’s KOSPI index’s decline widened to 3%, Samsung Electronics fell 5%, SK Hynix fell 4.5%, and KOSDAQ futures triggered a circuit breaker after rising 6%.

Analysts believe that investors have doubts about whether AI capital expenditures can generate actual returns. A research report from CICC also noted that leverage in the Korean stock market has reached historical highs, and that recent pressures related to forced liquidation have increased; the risk of market volatility should not be ignored.