Samsung and SK Group plan to invest $1.3 trillion over the next decade to bet on AI and semiconductors, with both companies’ stocks suffering sharp declines at the opening bell.

South Korean media has disclosed that Samsung Group and SK Group are developing a 10-year capital expenditure plan totaling around 2,000 trillion won (approximately $1.3 trillion), which is included in President Lee Jae-myung’s "Three Leap Projects" industrial strategic framework. The two conglomerates are expected to formally announce the plan to the presidential office on Monday afternoon. Funds will be focused on semiconductor capacity expansion, AI data centers and physical AI sectors. Each group plans to build 4 to 5 wafer fabs in Gwangju, and expand packaging and NAND capacities in North and South Chungcheong Provinces. However, the massive investment plan failed to boost market confidence. On Monday, South Korea’s KOSPI index extended its decline to 3%, Samsung Electronics dropped 5%, SK Hynix fell 4.5%, and KOSDAQ futures triggered a circuit breaker after surging 6%. Analysts believe investors are skeptical about whether AI-related capital expenditure will deliver actual returns. A research report from China International Capital Corporation (CICC) also noted that onshore leverage in South Korea’s stock market has reached a historical high, with recent margin call pressures rising, and market volatility risks cannot be ignored.