A push to move the semiconductor cluster under development in Yongin, Gyeonggi Province, to Saemangeum is resurfacing in politics. The argument is that the 1,000 trillion won semiconductor investment plan should be distributed to the provinces for balanced national development.
It was initially dismissed as an unrealistic pledge floated ahead of local elections, but the recent mood is unusual. As President Lee Jae-myung and Minister Kim Sung-hwan of the Ministry of Climate, Energy and Environment set the stage, the political circle in North Jeolla is moving in unison.
There are concerns that the so-called "semiconductor transfer theory" could inflame an internal family feud within North Jeolla. Saemangeum, cited as a candidate site for transfer, is the largest national land project since Dangun, creating 409 square kilometers (about 123.73 million pyeong) of new land by building a 33.9-kilometer seawall, the longest in the world. A site equivalent to 140 times Yeouido in Seoul and two-thirds the size of Seoul will be newly created.
However, of the 291 square kilometers (about 88.03 million pyeong) of actually usable land, more than half—about 60%—does not even have lot numbers yet. This is because jurisdictions have not been set.
Competition to claim ownerless land is bound to be fierce. Local governments that secure jurisdiction can attract corporations to stem population decline, and secure tax revenue from various permits and approvals to post-completion operations. In the end, "land" effectively becomes "money."
At the center of this competition are three cities and counties adjacent to Saemangeum—Gunsan, Gimje and Buan in North Jeolla. These local governments will not hesitate to file lawsuits to win jurisdiction. When the Ministry of the Interior and Safety decides on jurisdictional areas, the local governments that lose file suits to overturn the decision.
According to the Ministry of the Interior and Safety, as of the 9th there have been seven lawsuits over jurisdiction in Saemangeum. Cancellation suits continue over ▲Saemangeum Seawalls No. 1 and 2 ▲Saemangeum Seawalls No. 3 and 4 ▲Saemangeum east-west road ▲two cases involving the waterfront city, among others. The Supreme Court's rulings have taken as little as three years and as long as six.
In this situation, leading domestic semiconductor corporations such as Samsung Electronics and SK hynix are reacting with bewilderment to politicians' calls for transfer. To respond to the AI-driven supercycle, the global semiconductor industry is treating the speed of plant construction as a competitive edge. The completion timing is the variable that decides market leadership.
Corporations in the United States, China and Japan have launched a speed race, and TSMC's foundry plant in Kumamoto Prefecture, Japan, was completed in 20 months. In contrast, pushing a plant transfer on land without even finalized lot numbers and with potential litigation looming will inevitably cause delays, observers say.
A government official said, "With less than half of the jurisdiction decided, there is a high likelihood that lawsuits to cancel jurisdiction will continue," and added, "By simple calculation, dozens of lawsuits could be filed."
The problem is that local governments are hiring major law firms with tax money to seize land. Last year, the fiscal independence ratio of North Jeolla Province, to which these local governments belong, was 23.51%, the lowest among the country's 17 cities and provinces. Buan remained in the single digits, and Gimje barely exceeded 10%.
Amid these circumstances, with even rumors of transfer of leading domestic semiconductor corporations such as Samsung Electronics and SK hynix layered on top, community conflict is intensifying. An official at a local government said, "Although North Jeolla Province has not yet mentioned a specific site, that alone is bound to cause talk," and added, "In the end, it will only pour oil on the fire and enlarge the family feud."