On June 29, at the Blue House guesthouse, President Lee Jae-myung honored two business leaders, calling Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won 'national heroes' for their commitment to massive investments in semiconductors and AI. This moment, where the government and businesses declared the 'Three Mega Projects for South Korea's Great Leap Forward,' represents a bold decision for the nation's future. It is sincerely welcomed.
Kim Dae-jung's High-Speed Communication Network, Lee Jae-myung's Semiconductors
There are pivotal moments in history where visionary leadership and bold infrastructure investments have changed a nation's fate. A prime example is former President Kim Dae-jung's commitment to building a high-speed information and communication network in the aftermath of the financial crisis. His decision to 'advance in information technology even if industrialization was delayed' laid a solid foundation for South Korea to become an IT powerhouse and a global hub for content.
The current semiconductor and AI mega project could also serve as a historical turning point for a second leap forward. The plan to solidify South Korea as 'irreplaceable' in the memory semiconductor supremacy competition, a key asset in the AI era, is both justified and timely. While the proactive investments in information technology during the financial crisis acted as a shield against adversity, this project represents a spear aimed at the future.
Painful Questions Raised by the Iran War
For this ambitious blueprint to succeed, there are security realities that must be addressed. The precision strikes on Iran's nuclear facilities by Israel and the United States in June 2025 starkly illustrated how modern warfare has evolved, even targeting deep underground facilities. The focus of warfare has shifted from territorial conquest to 'neutralizing the adversary's strategic assets and critical infrastructure.' The very grammar of war has changed.
Applying this harsh reality to the Korean Peninsula, the fact that the world's largest memory semiconductor production base lies within North Korea's missile range is a national Achilles' heel. Pyeongtaek, the heart of semiconductor production, is located just over 100 kilometers from the demilitarized zone. While the plan to distribute new clusters further south represents a meaningful security advancement, the geographical constraints of the Korean Peninsula still pose fundamental limitations.
Three Layers of Geopolitical Vulnerabilities Outside the Factory
The threat is not limited to physical missiles. We are already exposed to three layers of structural vulnerabilities. First, there is the 'supply chain vulnerability.' China controls 98% of gallium refining for semiconductors and over half of germanium, weaponizing rare earth elements. Second, there is the 'geopolitical vulnerability.' Our companies are caught in the crossfire of Washington's stringent export controls against China and Beijing's ambitions for technological self-sufficiency. Despite supplying 70% of the world's DRAM, we find ourselves in a paradoxical situation, squeezed by the G2 power struggle. Third, there is the 'production concentration dilemma.' Global clients are extremely wary of the risks associated with advanced production capabilities being concentrated in a single region. Our significant competitive advantage could soon become a target for global distribution pressures and constraints. As hundreds of trillions of won are invested, these three risks will expand proportionally.
Proposing a 'Semiconductor Peace Economy'
Advanced semiconductor factories require unimaginable resources. The Yongin cluster alone demands power equivalent to ten nuclear reactors and 1.5 million tons of water daily. The government's commitment to ensuring power and water supply, along with one-stop administrative support, is a step in the right direction. However, there is one crucial, invisible infrastructure missing: 'peace.' Just as factories halt when electricity and water are cut off, without a stable security environment, even the most advanced technology can quickly become a hostage to geopolitics. The greatest risk to South Korea's advanced industries remains North Korea's nuclear and missile capabilities.
In the past, national security served as a protective fence for industries, but now, advanced industries themselves are core assets and weapons of national security. Furthermore, peace has become the most powerful 'essential infrastructure' for maintaining the value of these industries and attracting global investment. Technological superiority alone is not enough. We must be both the world's leading semiconductor nation and a safe haven where global capital can invest with confidence. This requires structurally reducing the risk of war on the Korean Peninsula, diversifying supply chains, and maintaining strategic balance amid U.S.-China power competition through advanced diplomatic capabilities. Only by building a 'peace gap' on top of our technological gap can the three mega projects be completed. Making South Korea the 'world's number one peace economy' is the true national strategy.
The Most Advanced Factory Requires the Most Sophisticated Blueprint for Peace
The reality is challenging. Dialogue channels between the North and South are severed, communication between North Korea and the U.S. is non-existent, North Korea is tightening ties with China and Russia, and Japan is pursuing a path to military power. The Taiwan Strait remains a powder keg for U.S.-China military conflict. Security uncertainties surrounding the Korean Peninsula are amplifying rather than easing. For this astronomical industrial bet to bear fruit, it is essential to contain North Korea. True deterrence against a North Korea armed with nuclear weapons and missiles comes from fundamentally altering its strategic calculations. An overwhelming deterrent that instills the understanding that provocation and war would lead to regime collapse is essential. Additionally, a crisis management system that minimizes the risk of miscalculation and accidental conflict to 'zero' must be established, which includes restoring dialogue channels and direct lines of communication.
We can no longer remain passive 'face followers' in an international order led by great powers. An active stance is needed to set the stage and initiate the pace of peace. The 'problem awareness and commercial sensibility' left by former President Kim Dae-jung is urgently required wisdom for governance today, which must address both the grand investment blueprint and the harsh security realities.
It is time to ask ourselves: if we must build the world's most advanced semiconductor factory on a dangerous powder keg, shouldn't our capacity to manage that risk and create peace also be the best in the world? I sincerely hope that alongside the blueprint for an unprecedented industrial leap, a sophisticated 'blueprint for peace' to eliminate the structural threats on the Korean Peninsula will be laid out.
Author's Major Background
- Chairman of the Korea Inter-Parliamentary Exchange Center (Washington, D.C.)
- Former Member of the National Assembly (two terms, Namyangju-eul, Democratic Party)
- Visiting researcher at Cornell University's East Asia Program (New York, USA, 2006-2007)
- Former Chief of Staff to President Kim Dae-jung
* This article has been translated by AI.
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