Semiconductor Production Base Expansion Sparks Regional Tensions

Samsung Electronics and SK Hynix are reportedly exploring the possibility of expanding their semiconductor production facilities to the Jeollanam-do and Gwangju regions, causing concern in Jeollabuk-do, which had previously aimed to attract major semiconductor factory investments. Earlier, Jeollabuk-do Governor-elect Lee Won-taek made a strong commitment to secure a "200 trillion Korean won-scale semiconductor factory investment" as a central part of his campaign. However, there are now growing concerns that this promise may not be fulfilled. Meanwhile, Jeollanam-do and Gwangju Integrated Special Self-Governing Province are filled with excitement over the potential for semiconductor factory investments.

The competition for semiconductor production bases has created a stark contrast between Jeollabuk-do and its neighboring regions. In a written interview with this newspaper on the 18th, Governor-elect Lee Won-taek expressed, “It is still too early to give up” on attracting the semiconductor factory. His response came after being asked whether his previous pledge could proceed as planned, given that Samsung Electronics and SK Hynix are considering establishing back-end process, packaging factories in the Gwangju-Jeollanam-do region.

Lee’s team emphasized that the factories heading to Gwangju are focused on back-end processes, and the governor-elect remains dedicated to attracting large-scale corporate investments. He continues to believe that Saemangeum is the ideal location for new semiconductor factory construction, citing essential conditions such as power supply, water resources, and ample land.

However, Shin Hyung-sik, head of the transition committee for the 9th Jeollabuk-do Governor-elect, appears more cautious than Lee. Shin stated, “The transition committee has advised the governor-elect to proceed carefully rather than face backlash later, and I personally support this view.” This indicates that scaling back or revising the semiconductor factory investment pledge might be necessary. The differing stances between the governor-elect and his transition committee have led to local speculation that the original plan to secure a 200 trillion Korean won-scale investment is ultimately unfeasible.

In contrast, Jeollanam-do and Gwangju are filled with optimism. Jeollanam-do-Gwangju Integrated Special Mayor-elect Min Hyung-bae previously remarked at his transition committee’s launch ceremony on the 8th, “I understand that investment plans exceeding our expectations are being prepared at the government and corporate levels. We will soon hear news related to the semiconductor industry.”

A regional source added, “Speculation dominates that the semiconductor investment plan targeting Jeollanam-do and Gwangju Integrated Special Self-Governing Province will be officially announced at a business leaders’ meeting hosted by President Lee Jae Myung on the 29th. It seems Jeollanam-do has ultimately gained the upper hand in the competition with Jeollabuk-do.”

Key Points of the Semiconductor Investment Debate

• Jeollabuk-do's Commitment: Governor-elect Lee Won-taek remains optimistic about attracting semiconductor investments, emphasizing the advantages of Saemangeum as a potential site.
• Transition Committee's Caution: Shin Hyung-sik, head of the transition committee, advises caution, suggesting that the original investment pledge may need revision.
• Regional Competition: The competition between Jeollabuk-do and Jeollanam-do/Gwangju highlights the strategic importance of semiconductor investments for regional economic growth.
• Future Announcements: There is anticipation that significant announcements regarding semiconductor investments in Jeollanam-do and Gwangju may be made soon.

Membership Offers for Readers

• Monthly membership for 5900 won, offering readers 2900 won, Chosun Membership
• 55000 won worth of newspapers and magazines, including 8 titles, available for unlimited reading, Chosun Membership
• Receive 7000 points to use like cash for smart shopping, Chosun Membership