Semiconductor investment in southwest Korea to reach 800 trillion won, industry minister says

The government is moving to support corporate investment in the southwest region — where semiconductor commitments alone total 800 trillion won ($519 billion) — by building out critical power and water infrastructure and easing regulations.

Minister of Trade, Industry and Energy Kim Jung-kwan said at a public briefing on the advanced industry development vision for the southwest region, held Tuesday at the Kim Dae-jung Convention Center in Gwangju, that the scale of investment is equivalent to five years of combined gross regional domestic product for South Jeolla Province and Gwangju, which together generate about 160 trillion won annually. "The economic map of this region is being redrawn," Kim said.

The Ministry of Trade, Industry and Energy plans to establish a "semiconductor innovation support team" and work with the presidential Semiconductor Special Committee to ensure infrastructure support and deregulation proceed without delay.

"We are pushing to enact a 'mega special zone' law to create an attractive investment environment," Kim said. "Once the law is passed, we will designate at least one mega special zone here to resolve the various difficulties companies face."

Kim said the central and local governments would take full, joint responsibility for essential infrastructure — including power and water supply — critical to operating semiconductor factories.

He also said the government plans to introduce a region-differentiated tax system, a priority initiative of Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol, so that workers based in the region and companies investing there can enjoy greater tax benefits.

Kim called on local governments to complement institutional support with hands-on engagement. "Ultimately, talent is the key to corporate success in the regions," he said, urging the South Jeolla-Gwangju integrated special city — set to launch Wednesday — to devote its full administrative capacity to helping skilled workers settle in the area.

"The government will not stop until corporate promises become reality and a new heart of Korean industry beats with full force," he added.