Despite the controversy over the Yoon Suk Yeol administration's alleged neglect of the Honam region, Gwangju and Jeonnam have been recognized for their top-tier semiconductor infrastructure and business potential.
According to government and academic sources on June 24, Gwangju and Jeonnam received the highest rating during the 2023 application process for the Ministry of Trade, Industry and Energy's 'National Advanced Strategic Industry Special Zones' initiative, promoting the development of a next-generation packaging special zone for system semiconductors.
The National Advanced Strategic Industry Special Zones are key national projects that provide comprehensive support, including infrastructure development for power and water, tax incentives, and expedited permitting processes. At that time, 15 local governments across the country were fiercely competing to attract semiconductor investments.
Gwangju and Jeonnam planned to develop a semiconductor cluster over approximately 800,000 square meters (about 198 acres) in the Gwangju Buk-gu Cheomdan 3 district. This area is currently under serious consideration for investment by SK Hynix. The local presence of Amkor Technology, the world's second-largest semiconductor packaging company, increases the likelihood of attracting related suppliers and manufacturers. Additionally, the region's abundant industrial water supply from nearby Jangseong Lake and Damyang Lake, along with its solar and wind energy infrastructure, positions it as an optimal site for achieving RE100 (100% renewable energy), a key requirement for major global tech companies.
Gwangju and Jeonnam outperformed competing regions in five of the seven evaluation criteria set by a joint public-private expert committee, including collaboration between industry, academia, and research, technological leadership, infrastructure availability, and agglomeration effects. Given the semiconductor industry's reliance on securing infrastructure like power and water during the initial setup phase, experts had already deemed Gwangju and Jeonnam's infrastructure satisfactory.
However, the outcome was a disappointment. The National Advanced Strategic Industry Committee, under the Prime Minister's office, ultimately designated Yongin-Pyeongtaek in Gyeonggi Province and Gumi in North Gyeongsang Province as the semiconductor special zones. A source involved in the selection process noted, "There was a prevailing expectation among the ministry's staff and expert review teams that Gwangju and Jeonnam would be selected, due to their excellent stability in power and water supply, as well as their clear niche market and technological advantages in packaging within the semiconductor industry."
At that time, the Ministry of Trade, Industry and Energy reportedly cited Amkor Technology's uncertain funding as a reason for Gwangju and Jeonnam's exclusion, arguing that the plan to invest 2.7 trillion won by 2040 was unclear. However, Amkor had already executed 400 billion won in expenditures during 2023 alone, the year the special zone evaluations were conducted. Recently, the company announced a concrete roadmap to invest an additional 1 trillion won by 2035 for the expansion of its Gwangju packaging facility.
In response, a Ministry official stated, "We cannot disclose the reasons for the exclusion of specific local governments due to regulations," but emphasized that the process was conducted fairly and objectively, given the project's direct impact on the country's future industrial competitiveness.
* This article has been translated by AI.
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