The South Korean government has decided to provide up to 20 trillion won in support to Gwangju over the next four years and exempt the power network construction project for the Gwangju Semiconductor Industrial Complex from a feasibility study.
Additionally, the national budget for Gwangju next year will include 13.9 trillion won in funding.
According to Gwangju City on September 2, the government approved the "2027 Budget Proposal," "2027 Fund Management Plan," and the "Plan for Promoting the Power Network Construction Project for the Honam Semiconductor Industrial Complex" during the 38th Cabinet meeting chaired by President Lee Jae-myung on September 1.
To expedite the construction of the semiconductor industrial complex's power network, the government confirmed the exemption from the feasibility study.
The government and Korea Electric Power Corporation are currently working on connecting a supply line of 20 to 25 kilometers from the 345 kV transmission network at Sinjangseong and Singwangju to the planned semiconductor cluster site at Gwangju Military Airport.
The total power demand for four semiconductor fabs and their partner companies is estimated at 6.3 gigawatts.
The government plans to establish the first phase of the power supply network by 2029 to support the operation of semiconductor production facilities by 2030.
By skipping the feasibility study process, which typically takes several years, the construction timeline for the power network can be shortened to align with corporate investment schedules.
Recently, the water supply project for the industrial complex and the integrated financial support project for semiconductors were also exempted from feasibility studies, which is expected to accelerate the development of infrastructure that combines power, water, and the industrial complex.
In the budget proposal and fund management plan for next year, the government has identified semiconductors and AI as key investment areas among three major mega-projects.
Gwangju City will receive 5 trillion won in financial incentives next year.
Of this amount, 4.35 trillion won will be provided through the integrated local government support fund, while the remaining 650 billion won will be allocated in connection with the tasks and projects of special local administrative agencies transferred to the integrated city.
The integrated local government support fund is divided into a general support account and a semiconductor support account. Next year, 28.5 trillion won will be allocated to the general support account and 15 trillion won to the semiconductor support account.
The general support account will be used for fostering regional key industries, attracting businesses, nurturing talent, improving living conditions, expanding metropolitan transportation networks, and covering integrated administrative costs.
The semiconductor support account will focus on infrastructure for the industrial complex, support for resident companies, technology development, building a materials, parts, and equipment ecosystem, and training specialized personnel.
The government plans to provide 6 trillion won in total support for the semiconductor sector from 2027 to 2030, allocating 1.5 trillion won annually, along with 14 trillion won for general support and related tasks, aiming for a total of up to 20 trillion won over four years.
* This article has been translated by AI.
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