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I know that 세우다 also has several other meanings, but both 정하다 and 세우다 can be used to set up something e.g 계획을 세우다 and 계획을 정하다 both mean to set up plans, so what is the difference?

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They are not really that close.

  • 정하다 = to decide on something. Similar to 결정하다.
  • 세우다 = to set up or build.

For setting up a plan, 세우다 is the right expression in most cases. You would use 정하다 if there are multiple alternative plans that you're considering, or the plan mostly involves deciding on dates and places without development stages. 정하다 can also mean "finalizing" a plan you were considering, like 확정하다 (make details final).

세우다 has many meanings (to build or erect = 짓다, 건립하다, stop a thing or person that is moving = 정지시키다, etc), but 계획을 세우다 sounds particularly idiomatic (and there doesn't seem to be another apt word for this meaning). 세우다 is more about drawing up the plan details rather than making things final like 정하다.

So the difference is deciding versus setting up.

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