Lee is expected to outline details of the plan during a press briefing scheduled for 2 p.m. on Monday, with Samsung Group chairman Lee Jae-yong and SK Group chairman Chey Tae-won also in attendance, according to presidential spokesperson Kang Yoo-jung on Sunday.
The proposal, part of Lee's agenda for balanced regional development, envisions leveraging the unprecedented profits that chipmaking giants such as Samsung Electronics and SK hynix have reaped from the artificial intelligence (AI)-driven semiconductor supercycle, encouraging them to establish production facilities and data centers in Gwangju and other parts of South Jeolla Province, one of the country's less economically developed regions.
To proceed with the plan, Lee met with the chiefs of Samsung and SK, along with other business leaders last week to discuss their investment commitments, reportedly stressing that their investment should be focused on projects for future generations.
But it has already sparked debate over its financial costs and commercial feasibility, with industry analysts estimating that new cutting-edge chip fabrication plants, or fabs, could require astronomical investment over several decades, especially if multiple facilities are built.
Samsung Electronics is already pouring up to 360 trillion Korean won (about US$240 billion) into its semiconductor complex in Yongin, Gyeonggi Province, while rival SK hynix has previously projected spending about 600 trillion won through 2050 on its own cluster in the same province.
Building additional large-scale manufacturing facilities in the proposed chip belt in the southwestern region could significantly increase their costs.
Some have also questioned whether demand will be sufficient to justify additional production capacity by the time the new facilities come into operation, warning that excessive investment could put pressure on profitability once the memory chip market enters a downturn.
Others point to the lack of infrastructure including water supplies in South Jeolla Province, saying that semiconductor-related materials, components, and manufacturing equipment remain concentrated in Seoul and the surrounding metropolitan area, which could significantly increase construction and other costs.
They also argue that it would make it difficult to maintain efficiency and keep pace with rapidly changing high-tech trends, while also making it harder to recruit experienced engineers.
But the president appeared adamant about the plan, posting several messages on Saturday alone and denouncing criticism from lawmakers of the main opposition People Power Party (PPP), who opposed the idea, saying Lee had handpicked the site for the cluster, although such decisions should be made by companies based on economic feasibility and other factors.
Dismissing their concerns, Lee said that South Jeolla Province offers abundant industrial water supplies and renewable energy infrastructure, which could help companies meet the growing demand for low-carbon manufacturing.
He also stressed that building the chip cluster would promote more balanced regional development while strengthening South Korea's long-term competitiveness in the global semiconductor industry and diversifying the country's industrial base.
"Similar plans were already reviewed by the previous government in 2023," Lee added, urging critics to refrain from what he described as groundless, politically motivated objections.
Copyright ⓒ Aju Press All rights reserved.
