Lee Chan-hee, chairman of Samsung's Compliance Committee, recently stated that investment decisions regarding the Honam region should be based on "corporate sustainability". While he acknowledged the need for balanced regional development, he emphasized that large-scale semiconductor investments should be driven by management considerations such as location, workforce, power supply, water resources, and supply chains, rather than political demands.
On June 16, Lee spoke to reporters before a regular meeting of the Compliance Committee at Samsung Life Insurance's Seocho building in Seoul, where he addressed questions about the proposal to establish a semiconductor factory in the Honam region. He reiterated that the Compliance Committee does not directly influence Samsung's specific investment decisions, but reaffirmed that "Samsung is a company for the people."
Recently, there have been calls from both the political and business sectors for Samsung to establish a large-scale production base in Honam, as semiconductor production is currently concentrated in the Seoul and Chungcheong regions. The argument is that, given the strategic importance of semiconductors to the nation, production facilities should be distributed to promote regional balance.
However, building a semiconductor factory is not as simple as securing land. It requires substantial power and water resources, a stable transportation network, a robust ecosystem of suppliers, and a skilled workforce. The more advanced the manufacturing process, the more interconnected the supply chains for equipment, materials, and components must be. The investment required can reach tens of trillions of won.
Lee's comments reflect a principled approach that considers these realities. He indicated that Samsung's investment decisions cannot be made solely on the basis of regional distribution; they must also take into account corporate competitiveness and national industrial competitiveness. The Compliance Committee has consistently emphasized that responsible decision-making is preferable to reckless investments.
Samsung Electronics currently operates semiconductor production bases primarily in Pyeongtaek, Hwaseong, and Giheung. Investments in advanced memory and foundry services are concentrated in areas where existing infrastructure, workforce, and supplier networks are already established. The expansion of the Yongin semiconductor cluster and the Pyeongtaek campus follows the same rationale.
The proposal for a factory in Honam presents a complex challenge for Samsung. While the justification of regional balance is significant, actual investment requires a comprehensive package that includes power networks, water resources, workforce training, supplier relocation, and logistics development. Without sufficient support from the government and local authorities, it would be difficult for the company to manage alone.
In the business community, Lee's remarks are seen as outlining the boundaries of Samsung's investment principles. As a company with a substantial impact on the national economy, Samsung cannot ignore community expectations. At the same time, any investment failures would burden shareholders, employees, suppliers, and the national economy as a whole.
Meanwhile, the Compliance Committee is an independent external body that monitors compliance management at major Samsung affiliates. It does not have direct authority over investment decisions but has continuously provided input on key group-wide issues, including responsible management, governance, labor relations, and compliance risks.
The fourth term of the Compliance Committee has expanded its oversight scope from seven to eight affiliated companies with the addition of Samsung E&A. This includes Samsung Electronics, Samsung C&T, Samsung SDI, Samsung Electro-Mechanics, Samsung SDS, Samsung Life Insurance, Samsung Fire & Marine Insurance, and the plant and engineering affiliate. The committee now also needs to examine compliance risks related to overseas operations and large-scale projects.
* This article has been translated by AI.
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