Key Remarks

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-chul stated on his social media on June 28 that he respects the decisions by Samsung Electronics and SK Hynix to invest in semiconductor facilities in Gwangju and South Jeolla Province, in Korea's southwestern region, and that the government will fully support these projects. He stressed that the current era is defined by global hegemonic competition over advanced industries, requiring the mobilization of all national capabilities, including manpower, resources, and land.

Regions as the Battleground for a Decisive Edge

Koo explained that breaking away from the oversaturated capital-region-centric system and unleashing the potential of the regions is the key task ahead. He defined the battleground for achieving a decisive technological edge as ultimately lying in the regions. He also assessed that without adequate conditions in place, such as location, electricity, and water supply, the companies' large-scale regional investment decisions would not have been possible, and that absent such conditions, the companies would have had no choice but to turn abroad instead.

Political Dispute and the President's Rebuttal

A dispute between the ruling and opposition parties continued over the formation of the Honam semiconductor cluster. Opposition lawmakers raised questions about the investment location, asking why Honam was chosen. President Lee Jae-myung posted six messages on his social media on June 27 directly rebutting these claims. He stated that the formation of the Honam semiconductor cluster was a project officially confirmed back in 2023 under the previous administration of President Yoon Suk-yeol, explaining that the companies made their decision based on their own business interests after the government had already established the necessary conditions for water, electricity, land, infrastructure, and workforce training. Regarding water supply specifically, he said Honam has ample water resources comparable to those of the Yeongnam region or the capital area, and that a review found the region capable of supplying up to 1 million tons of industrial water per day.

Investment Plans and Government Support System

Samsung Electronics has decided to move up the timeline for its Yongin semiconductor cluster by seven years, while SK Hynix has confirmed plans to advance the start of production by 12 years. Minister of Trade, Industry and Energy Kim Jung-kwan stated on his social media that the southwestern region investment represents both a strategic decision by the companies and a core element of balanced national development. Deputy Prime Minister Koo pledged to mobilize a government-wide, all-out support system to ensure that the regional investment, which was difficult to secure, can swiftly produce results. He also outlined a broader direction of building a foundation for future industries in regions capable of producing and consuming energy locally. Gwangju and South Jeolla were cited as having favorable investment conditions, including a talent base from Chonnam National University, the Gwangju Institute of Science and Technology, and the Korea Institute of Energy Technology, along with abundant electricity and water resources. The government announced it will hold a national briefing on Korea's three mega projects on the 29th, with Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won expected to attend.