Semiconductor siting should not be viewed through regional lens, Cheong Wa Dae aide says

Hong Ik-pyo, chief political secretary at Cheong Wa Dae, said Sunday that framing the debate over Samsung Electronics and SK hynix's planned semiconductor investment in the Honam region as a rivalry between regions misses the point entirely.

Speaking on SBS Radio's Kim Tae-hyun's Politics Show that morning, Hong said President Lee Jae Myung appeared to be "a bit frustrated" after spending the weekend publicly defending the case for siting a major semiconductor cluster in the Honam region.

Over the weekend, Lee had posted a series of messages on social media responding to concerns about water and power supply for a large-scale semiconductor factory in the region.

Hong said the president's push reflected surging global demand for chips. "Demand for semiconductors is growing exponentially — this is not a temporary phenomenon but a structural competition that will continue for a considerable period," he said, adding that South Korea needed to build large-scale clusters to capture that demand.

He said investment in Yongin and the broader Gyeonggi Province area would continue on its own track, but that it alone would not be enough to keep pace with demand. The additional capacity envisioned for the Honam and southwestern regions, he said, was meant to sustain South Korea's global competitiveness.

On the criteria that made Honam the preferred site, Hong pointed to land, power, water, research institutions and talent. "The most important factor is, first, land," he said. "Second, in terms of power, the Honam region actually has considerable surplus capacity right now."

He said the southwestern region also held a strong advantage in renewable energy. "Looking at Honam as a whole, there is surplus power of around 130 percent or more, and Gwangju alone has around 170 percent," he said. He added that the region's renewable energy potential was particularly important given that semiconductor manufacturing would increasingly need to meet RE100 — the commitment to sourcing 100 percent of energy from renewable sources.

On water supply, Hong acknowledged concerns but said studies had confirmed that the Yeongsan and Seomjin rivers could provide sufficient water. "From a company's perspective, power and water are basic requirements, and sufficient review and alternatives have already been prepared for these issues," he said.

He also said the region had the research and talent infrastructure to support a semiconductor cluster, citing energy engineering colleges, the Gwangju Institute of Science and Technology and Chonnam National University as institutions already capable of supplying skilled workers and research capacity.

Hong rebuffed suggestions that the government was strong-arming companies into the investment. "Global firms these days don't go just anywhere because their arm is twisted," he said. "A semiconductor cluster is an investment made with a horizon of not 10 or 20 years, but decades. The Lee Jae Myung administration has four years left — the idea that a four-year government can twist a company's arm into a decades-long commitment is an excessive interpretation."

He added that companies act primarily on sound economic rationale and their own business judgment, with central and local government support playing a complementary role.

Hong said the investment reflected a combination of corporate decision-making and all-out support from both central and local governments. He added that politicians in other regions — including Yeongnam, which was not included this time — had a serious responsibility to think about how to prepare their areas for the future.