Park Soo-hyun, the South Chungcheong governor, met with ChosunBiz at the provincial government office on the 10th and said, "An investment of 202 trillion won can lead to immediate increases in sales and jobs—that is South Chungcheong's strength," adding, "South Chungcheong will seize the initiative in advanced industries of the AI era, including semiconductors, displays, and mobility."
Governor Park particularly emphasized the "speed" of attracting investment. Park said, "Other regions need at least five years to secure sites and infrastructure, but South Chungcheong can deliver results within that time," and noted that the province formed a "lightspeed TF" to swiftly support corporate investment. A "three-power innovation TF" is also in operation to secure electricity, water, and workforce.
Park said, "Such support led to the resumption of the Phase 2 project at Samsung Display's Asan campus, which had been stalled for five years," adding, "'AI capital South Chungcheong' is not an empty slogan." Park went on to say the province will ensure that the fruits of AI-led growth are shared evenly with traditional industries such as agriculture, fisheries, and livestock, as well as with small and midsize enterprises. Below is a Q&A with Governor Park.
─The three mega projects were unveiled in Jun. Large-scale investments are also planned for South Chungcheong.
"I think this is the first time since Dangun that an investment of this scale is being made outside the capital region. I hope this becomes an opportunity for Korea to mark the first year of balanced national growth. The total investment size is larger in the SuNAM region, but in terms of the actual pace at which projects proceed, Chungcheong can firmly seize the initiative."
─The southwestern semiconductor cluster is getting more attention in terms of scale. Why do you think South Chungcheong can take the lead?
"Other regions such as the SuNAM area essentially have to build infrastructure from the beginning. Take Gwangju as an example: they say they will use a military air base site, but that means they must first resolve the issue of relocating the military air base. If a fighter wing is relocated to another region, there could be local backlash over increased training and noise.
South Chungcheong is different. The industrial base and infrastructure, including semiconductors and displays, are already in place. The time required to secure new sites and lay down basic infrastructure is relatively short. Ultimately, the speed of executing investment is the greatest competitive edge."
─Are conditions sufficient for power supply?
"Electric power itself is relatively abundant. However, there is a new point of conflict: the "produce and consume locally" approach and transmission line issues. While we agree with consuming electricity where it is generated, we need a transmission network to send power where it is needed. How to resolve the local conflicts that arise in that process is the responsibility of local governments and myself."
─What about water supply? The government has also unveiled plans to build new dams.
"Water supply is the most concerning part. With technological advances, AI data centers that significantly reduce water use are emerging. Before anything else, we need an accurate forecast of how much additional water advanced industry investments will actually require.
But the central government first announced plans to build the Jicheon Dam. There was not enough explanation of how short we are of water and what size dam is needed to supply how much.
Personally, I oppose building the Jicheon Dam. However, if a public deliberation committee reaches the conclusion, after sufficient discussion, that it is necessary, I will follow that judgment. For now, it is time for the central government to fully explain the need to local residents."
─Investments in advanced industries such as semiconductors are concentrated in northern South Chungcheong. How do you plan to address regional imbalances within the province?
"The four northern cities—Cheonan, Asan, Dangjin, and Seosan—account for about 75% of South Chungcheong's gross regional domestic product (GRDP). The remaining 11 cities and counties account for around 25%. Fifty-eight percent of enterprises are also concentrated in the four northern cities. Resolving this imbalance is one of the most important tasks for South Chungcheong.
The remaining 11 cities and counties have a high share of traditional industries such as agriculture. South Chungcheong is fundamentally an agricultural province as well. We will apply the AI transformation not only to advanced industries but also to agriculture and traditional industries to narrow income and industrial gaps between regions."
─Competition among local governments is fierce over the second round of public institution transfers. In line with the government's discussion of integrating the five power generation companies, there is also a race to host the integrated headquarters.
"I believe there is no alternative to South Chungcheong for the integrated headquarters of the five power generation companies. Of the country's 60 coal-fired power units, 28 are in South Chungcheong—nearly half. Of these, 22 are slated to be shut down by 2036.
A special law requires the fostering of alternative energy industries in areas where coal-fired plants are closed. South Chungcheong will inevitably become the frontline of the transition to new energy industries. Placing the integrated headquarters of the five power generation companies in such a region is a natural and obvious choice."
─Amid unfavorable local government finance conditions, there are concerns that the central government's creation of a future response fund will reduce the grants-in-aid going to localities.
"I fully understand the central government's intent to create a future response fund. It is necessary to prepare for difficult times ahead when the economy and tax revenues are strong.
However, there is something we must not overlook. During the previous administration's three years, the grant-in-aid (non-earmarked tax) to local governments was significantly curtailed, and as fiscal austerity accumulated, local government finances have already become very strained. In this situation, if fiscal management becomes excessively tight again, local governments will find it hard to cope. We need to reflect local realities more precisely."