Lee Announces Five‑Hub, Three‑Province Decentralization Blueprint President Lee Jae Myung outlined a plan on 23 January 2026 at a Ulsan town‑hall to develop five regional hubs—Seoul, southeast, northeast, central and western—and to create three special self‑governing provinces in Jeju, Gangwon and North Jeolla [1]. The blueprint aims to dilute Seoul’s economic dominance and spread investment more evenly across the nation [1]. Lee presented the scheme as a national priority for balanced growth [1].

Ulsan Designated as AI Manufacturing Center with Data Center Project Lee positioned Ulsan to lead South Korea’s AI transformation by leveraging its automotive, shipbuilding and petrochemical base [1]. He announced that SK Group, in partnership with Amazon Web Services, will build the country’s largest AI data center in Ulsan [1]. The project is intended to accelerate AI‑driven manufacturing and keep Korean industry competitive [1].

Public Support Framed as Essential to Overcome Entrenched Resistance Lee acknowledged strong resistance from entrenched interests and warned that public understanding is crucial for the plan’s success [1]. He urged citizens to back the decentralization effort to counter inertia and vested‑interest push‑back [1]. The call for public backing underscores the political challenge of reshaping long‑standing regional dynamics [1].

Seoul Concentration Linked to Housing, Utility Strains Lee argued that decades of resource concentration in the Seoul metropolitan area have reached capacity limits [1]. He cited soaring housing prices and constraints on electricity and water supplies needed for new semiconductor plants as concrete pressures [1]. These infrastructure stresses reinforce the need for a more distributed growth model [1].

Intensive Investment Targeted at Ulsan’s Existing Strengths Lee emphasized that Ulsan’s strong fundamentals justify intensive investment to advance the AI‑driven shift [1]. He framed the funding as a proactive, localized strategy rather than a concession to regional demands [1]. The investment plan ties directly to the AI data center and broader hub objectives [1].