The government decided to build the "Southwestern semiconductor cluster (industrial complex)," to be created through about 800 trillion won in corporate investment, on the site of the Gwangju military airport. Presidential Chief of Staff Kang Hoon-sik said at a briefing on the results of the "mega project public-private joint review meeting" on the afternoon of the 6th that "corporations presented the opinion that among candidate sites in the Honam region, the Gwangju military airport is the most suitable," adding, "At today's meeting, we decided to establish the Honam semiconductor industrial complex on the Gwangju military airport site."
Kang said, "The Gwangju military airport area has the advantage of minimizing the site construction period because, as an airport that can secure a site of about 2.5 million pyeong, leveling work has already been completed," adding, "Being adjacent to downtown Gwangju and a KTX station offers advantages for securing talent and residential conditions, and connectivity and logistics access via roads, airports and ports are also excellent," explaining the reasons for selecting the site.
The Southwestern semiconductor cluster is a key project of the Lee Jae-myung administration's "Korea three mega projects," centered on Samsung Electronics and SK hynix and other major conglomerates building a total of four semiconductor production facilities (fabs) in Gwangju, two each, with an investment of 800 trillion won. In addition, 87 trillion won will be invested to build a semiconductor artificial intelligence (AI) data center, and 8 trillion won in other smart home appliances and energy, for a total of 896 trillion won. That is more than Korea's budget this year (782 trillion won).
According to Cheong Wa Dae, in line with the policy of balanced national development and aiming to foster high-tech industries outside the capital area, this project presupposes corporate investment of 896 trillion won in the Southwest, 392 trillion won in the Chungcheong region and 312 trillion won in the Yeongnam region. The Chungcheong region plans to invest 156 trillion won in semiconductors, 150 trillion won in AI data centers and 86 trillion won in other areas such as displays, batteries and bio. The Yeongnam region will invest 146 trillion won in AI data centers, 13 trillion won in physical AI, and 111 trillion won in other sectors such as automobiles, shipbuilding, aerospace and energy.
Adding investment amounts in the capital area, including Yongin and Pyeongtaek in Gyeonggi, where semiconductor fabs are currently under construction, brings the total to 4,700 trillion won. Among this, in line with the AI-driven memory supercycle, Samsung Electronics and SK hynix decided to invest 3,500 trillion won in semiconductors alone.
◇"Speed is everything… simplify everything from land acquisition to environmental impact assessments"
Cheong Wa Dae will push to streamline all administrative procedures to speed up the mega project. President Lee Jae-myung said at the "public-private joint review meeting" that day, "In the process of acquiring land (to establish high-tech industrial facilities), start negotiated acquisition and expropriation procedures at the same time." He also said, "That is the original intent of the law. It would be good not to waste time on negotiated acquisition," adding, "Only speed is important."
Under current law, if no common ground is found in the negotiated acquisition process, the project operator applies for an expropriation ruling to the Land Expropriation Committee, then proceeds through related procedures to forcibly transfer ownership. Because this process typically takes several months and can delay the project, the president's instruction is to carry out negotiated acquisition and expropriation procedures simultaneously.
He also called for shortening administrative procedures such as environmental impact assessments. For already vetted project districts, he said to omit essential steps such as deciding on items, drafting, and collecting residents' opinions. Lee said, "Environmental impact assessments are necessary, but if it is the same area, is there really a need to do them again?" adding, "If one already exists, it is important to operate based on those results, and even if conducted anew, the period needs to be drastically shortened."
This was the fifth time Lee met Samsung Electronics and SK in public in connection with this project. Starting with the "Korea great leap three mega projects national briefing" on the 29th, attended by Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won, regional "national briefings on visions for advanced industry development" were held on the 30th in Gwangju (Southwest), on the 2nd in Asan (Chungcheong), and on the 3rd in Jinju (Yeongnam) to hear investment plan announcements from corporations. Samsung Electronics President Kim Yong-kwan and SK hynix President Kwak Noh-jung also attended the public-private joint review meeting that day.