Korea Makes Power Grid Expansion Central to AI and Semiconductor Push

South Korea is putting electricity supply and transmission infrastructure at the center of its drive to expand semiconductors, artificial intelligence and digital government, with Prime Minister Han Seong-sook warning that delays in the power network could undermine the country’s flagship technology initiatives.

Speaking at the opening of a Cabinet meeting in Seoul on Tuesday, Han said the success of the government’s “three megaprojects” depends on delivering power on time and building a robust transmission grid. The initiative groups together a semiconductor-led industrial strategy, physical AI and AI data centers, and the broader use of AI in public administration. Each area is expected to require substantial and dependable electricity capacity.

Han said it was “no exaggeration” to describe timely power supply and early transmission-network construction as the key to the projects’ success. She also emphasized the importance of cooperation from residents when transmission infrastructure is developed. That point highlights a practical constraint facing Korea’s technology ambitions: generating additional electricity is only part of the task, because new industrial clusters and computing facilities must also be connected to the grid.

The comments frame energy infrastructure as an implementation test for Korea’s AI and semiconductor policy. Advanced chip production requires large, stable loads, while AI data centers consume significant electricity for computing and cooling. Physical AI systems and expanded use of AI across government could add further demand as projects move from planning into operation. Han did not announce a new budget, construction timetable or specific grid project at the meeting.

The Cabinet discussion also addressed pressures beyond technology policy. Han instructed officials to monitor unfair market practices that could drive prices higher before the Chuseok holiday. She linked growing inflation pressure to rising oil prices amid renewed conflict in the Middle East.

Public health was another concern. Han said influenza and other acute respiratory infections were spreading faster than in previous years and called for preventive measures. These included securing vaccines and ensuring that infants, children, older people and others with weaker immunity receive vaccination and medical care in a timely manner.

For the technology agenda, however, the message was direct: Korea’s ability to turn major AI and semiconductor plans into operating projects will depend not only on investment and innovation, but also on whether electricity and transmission capacity can be delivered where and when they are needed.