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๐Ÿ‡ฐ๐Ÿ‡ท South Korea /Economy & Trade

Chungcheong welcomes $58 billion semiconductor investment amid opposition criticism

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The Chungcheong region in South Korea will receive approximately 81 trillion won ($58 billion) for semiconductor investment, focusing on packaging facilities.
  • This investment is part of a larger national initiative to boost the semiconductor industry, with a significant portion allocated to the Honam region.
  • While local officials welcome the investment, some opposition lawmakers criticize it as politically motivated and insufficient for the Chungcheong region.

The Chungcheong region of South Korea is set to receive a substantial 81 trillion won (approximately $58 billion) in investment for semiconductor industry development, primarily focusing on establishing advanced packaging facilities. This allocation, announced at a government briefing on "Three Mega Projects for Korea's Great Leap Forward," marks a significant inclusion for the region, which had anticipated a greater concentration of investment in the southern Honam area.

This 3 major project is a historic turning point that will provide new opportunities for neglected regions and achieve balanced national development.

โ€” Park Soo-hyunChungcheongnam Province Governor-elect Park Soo-hyun on the significance of the semiconductor investment.

The plan involves constructing new High Bandwidth Memory (HBM) fabrication plants in On์–‘ and Cheonan within Chungcheongnam Province, and supporting HBM packaging investments in Cheongju, Chungcheongbuk Province. This strategic move aims to bolster South Korea's post-processing semiconductor ecosystem to meet surging demand for advanced chips.

Do not ruin the semiconductor industry, on which the nation's fate hinges, with 'semiconductor politicking'.

โ€” People Power Party lawmakersStatement by opposition lawmakers criticizing the government's investment plan.

Park Soo-hyun, the governor-elect of Chungcheongnam Province, hailed the investment as a "historic turning point" for balanced national development, promising swift administrative support for projects. However, the allocation has drawn criticism from opposition lawmakers, who argue the investment is disproportionately skewed towards the Honam region and insufficient for Chungcheong. They labeled the plan "semiconductor politicking."

Despite being the optimal location for semiconductor industry competition, Chungcheong is being harmed by political logic.

โ€” Sung Il-jongRepresentative Sung Il-jong's criticism of the investment allocation.

Representative Sung Il-jong, a member of the People Power Party, argued that despite Chungcheong's optimal conditions, including existing Samsung and SK Hynix facilities, research infrastructure, and proximity to the capital region, political logic is hindering its full potential. Governor Kim Tae-heum echoed these sentiments, stating that Honam's advantages in power, water, and labor are inferior to Chungcheong's, yet the investment appears pre-determined to favor Honam.

The selection of the second semiconductor cluster site by the Lee Jae-myung government was focused on Honam from the beginning, without considering the specific strengths and conditions of each region.

โ€” Kim Tae-heumChungcheongnam Province Governor Kim Tae-heum's critique on social media.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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