Opposition lawmaker demands transparency on Honam semiconductor cluster funding

A prominent opposition lawmaker is demanding transparency from the government over the financial plans for a new semiconductor cluster in the Honam region. Ahn Cheol-soo of the People Power Party urged the administration to immediately reveal how the substantial investment will be funded, calling the current plan for financing the Honam semiconductor project a "blank check."

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Now is the time to transparently reveal the funding plan for the Honam semiconductor cluster. We must reconsider the funding plan for the Honam semiconductor project, which is close to a blank check.

Ahn criticized the government's announcement of an 800 trillion won investment by "Samniks" (a portmanteau likely referring to Samsung and SK Hynix) in the Honam region. He argued that concentrating four core memory fabrication plants in one area neglects other regions. The plan also includes comprehensive support for infrastructure such as water, power, railways, roads, and residential, cultural, and educational facilities, which Ahn characterized as an attempt to build a new city in the Honam region using national funds.

While acknowledging the importance of balanced national development, Ahn questioned the funding mechanism for this massive investment. He pointed out that the government has only vaguely mentioned establishing a "special account" without detailing the financial contributions from local governments. He cited the Ministry of Trade, Industry and Energy's "Semiconductor Special Act Enforcement Decree," which was recently announced, as the basis for this special account. Ahn described this account as providing "special funds akin to emergency fiscal orders."

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The government's plan to build a new city in the Honam region with national funds.

Ahn further elaborated that funds from this special account could be drawn from the national treasury without significant restrictions, and any unused portion could be carried over to the next year. He expressed concern that this could lead to as much as 100 trillion won in excess tax revenue over three years being funneled into the Honam semiconductor infrastructure under the guise of the special account. "If not, is there a separate source of funds other than excess tax revenue?" Ahn questioned. "Are you going to raise taxes or cut other budgets?"

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This special account provides special funds akin to emergency fiscal orders.

The lawmaker insisted that the operation of this special account requires parliamentary deliberation. "The pursuit of the unlimited Semiconductor Special Account must be stopped immediately, and its use must be discussed by the National Assembly," he stated. "Remember that the national wealth created by the people and businesses is not a blank check that the president can use at will."

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The pursuit of the unlimited Semiconductor Special Account must be stopped immediately, and its use must be discussed by the National Assembly. Remember that the national wealth created by the people and businesses is not a blank check that the president can use at will.