For decades, the South Korean economy has relied on the capital region and specific industrial belts for growth. Semiconductor production has been concentrated in the southern region, while biotechnology and major research and development infrastructure have been based in the capital area. The Honam semiconductor cluster could serve as the first large-scale experiment to change this structure. With semiconductor manufacturing facilities led by Samsung and SK Hynix, along with design, equipment, and materials companies co-locating, a new industrial ecosystem will emerge. Universities, research institutions, and skilled professionals will converge, allowing the entire region to develop into a hub for advanced industries. New cities will be created, and new industrial zones will be established, similar to how Pohang Steel changed Pohang, Hyundai Heavy Industries transformed Ulsan, and Samsung Electronics reshaped Suwon. Honam now has the potential to become a center for advanced industries.
Importantly, this project extends beyond semiconductors. Today, semiconductors are no longer just a single industry; they are the brain of AI, the heart of data centers, and the foundational technology driving physical AI, robotics, autonomous vehicles, and future mobility. The next decade will hinge on who can produce AI semiconductors more efficiently and in greater quantities, determining national competitiveness.
In this context, the Honam semiconductor cluster is not merely a regional development initiative but a national strategy to secure South Korea's future economic prospects. The United States is investing hundreds of billions of dollars to attract semiconductor factories, while Japan has provided national support to bring TSMC to its shores. In a global competition, maintaining the existing industrial map could be a perilous choice for South Korea.
Another significant aspect of this plan is industrial diversification. Honam could focus on semiconductors, Chungcheong on advanced materials and packaging, Yeongnam on AI innovations in manufacturing and advanced component production, and Incheon could emerge as a center for the biotechnology industry. This approach is not about concentrating benefits in specific regions but rather creating a new growth model that connects the entire nation through advanced industrial belts.
The conditions for industrial location are also changing in the AI era. While accessibility to the capital region was once paramount, factors such as energy, data, talent, and research and development capabilities are becoming increasingly important. Particularly, as RE100 becomes the new standard for global supply chains, the ability to secure renewable energy is now part of industrial competitiveness. For South Korea to survive in future industrial competition, it must move beyond the outdated capital-centric industrial structure and create new growth axes.
Crucially, this opportunity should not be consumed by political strife. The semiconductor cluster is not a project of a specific administration but a national initiative tied to South Korea's future. It must endure regardless of changes in government or political circumstances.
South Korea industrialized through steel and crossed the threshold to advanced nation status with semiconductors. Now, it must prepare for the era of AI semiconductors and physical AI. Only when the benefits of the semiconductor boom extend beyond the capital region to foster growth across the entire nation can a significant leap forward for the country be realized. The time has come not just to build factories but to redraw South Korea's industrial map.
* This article has been translated by AI.
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