Industry Minister Defends Honam Semiconductor Site Choice

Minister of Trade, Industry and Energy Kim Jeong-gwan defended the choice of Gwangju as the site for the Honam region semiconductor cluster on August 12. He clarified that the company, not the government, initially proposed Gwangju as the location, stating "It is true that we proposed various sites, and the final decision to select that site was made by the company."

Kim emphasized the urgent need to complete the first phase of the Honam semiconductor fab by 2029, describing 2029 and 2030 as "slow" in the context of global competition. When questioned about the role of the government in the site selection process, Kim explained that the government provided the necessary site quickly, noting "The company needed a site, and the government made a proposal regarding the necessary site."

Concerns about potential government pressure on the company were dismissed by Kim, who stated "I am in an embarrassed position regarding this being discussed politically," adding "From the company's perspective, they needed a site they could enter even a day earlier, a site where power and water could be supplied faster than in other regions and where a location could be secured relatively quickly, and that is the part that coincided with Gwangju."

Kim also addressed concerns about the possibility of delays in power grid construction, explaining that while current transmission capacity alone may not be sufficient to supply power for 4 fabs, future power grid expansion would make it possible. He emphasized the need to improve the working hours system to maintain semiconductor competitiveness, stating "We are discussing various forms, representatively the white-collar exemption and the flexible working hours system."