PPP calls government intervention 'inappropriate'; Democratic Party dismisses criticism as outdated regionalism; Lee says historic investment deserves praise
The ruling and opposition parties clashed over plans to bring semiconductor investment to the Honam region. As opposition figures intensified their attacks, calling the move "government coercion that twists corporate arms," the ruling Democratic Party fired back, dismissing the criticism as a politically motivated appeal to outdated regionalism. President Lee Jae Myung joined the public debate directly, posting seven messages on social media over the weekend to explain the need for large-scale investment and defend the policy.
People Power Party floor leader Jung Jeom-sik said at a supreme council meeting Monday that "with every region competing to attract semiconductor factories, we are asking whether the site was chosen through a transparent, fair and objective process based on the company's own judgment," calling the decision a product of "government intervention rather than corporate autonomy."
Jung said President Lee "spent the entire past weekend flooding social media with comments about the location of the semiconductor industry, a matter of national importance for the next hundred years," calling it "inappropriate conduct for a president." He urged Lee to stop posting on social media, step back from the Democratic Party convention and focus on governing the country.
People Power Party lawmaker Ahn Cheol-soo wrote on Facebook that day that "the more the government pushes ahead with the Honam semiconductor plan, the more property values — not just at the site itself but in nearby commercial and residential areas — will skyrocket." He added that "enormous land compensation payouts and capital gains will rain down on people. Can anyone say with certainty that no government or ruling party figures are among them?"
Reform Party leader Lee Jun-seok also said at his party's supreme council meeting that day, "Can we really place a national industry worth hundreds of trillions of won on a predetermined conclusion?" He added, "A doctor who writes a prescription first and then fits the diagnosis to it loses their license. Those who reach a conclusion first and then twist corporate arms should likewise have their licenses revoked."
The Democratic Party defended President Lee and went on the offensive, dismissing the attacks as stale regionalism. Democratic Party floor leader Han Byung-do said at the party's supreme council meeting that day that the PPP was "distorting the facts with inflammatory language like 'government control' and 'arm-twisting,'" calling it "truly deplorable."
Han said the criticism reflected "ignorance of global companies' survival strategies and a malicious attempt to obstruct national growth," and hinted that the party was considering legal action against the opposition.
Democratic Party lawmaker Im Mun-yeong, a former standing vice chair of the National AI Strategy Committee, said on MBC Radio that day that "when a company plans an investment of hundreds of trillions of won, it is not a decision made simply by a handful of executives — there are investors who put up the capital and countless overseas shareholders." He said it was "simply impossible for a company to make such a decision under government coercion."
Im said "now is the time to use the current semiconductor supercycle to prepare for the next 30-plus years," adding that "bold investment is needed at this moment."
President Lee posted a series of rebuttals on X (formerly Twitter) on June 27 and 28, addressing concerns about water supply for semiconductor manufacturing, opposition politicians' demands for criteria on the Honam site selection, power supply issues and accusations of arm-twisting large conglomerates.
The posts were seen as a direct effort to win over public opinion as the political battle over the Honam site's viability intensified. Analysts said Lee appeared intent on firmly holding the initiative on a major economic agenda item he has prioritized in his second year in office.
On accusations that the government pressured global semiconductor companies into investing, Lee said, "Those who used to exploit national policy for political ends and twist corporate arms themselves may see this the same way." He said the decision was "precisely the result of the government creating a business-friendly environment — securing water, power, land, infrastructure, workforce development and living conditions — and of officials persuading and requesting, after which CEOs judged it to be in their companies' interest and made the call."
Lee added, "This is not called abuse of authority or coercion — it is called administrative guidance and facilitative governance." He said the outcome was "the result of officials fulfilling their proper responsibilities in pursuit of balanced national development, which has become a survival strategy for South Korea," and that "this historic achievement of attracting an unprecedented, massive regional investment is something that deserves to be praised."
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