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๐Ÿ‡ฐ๐Ÿ‡ท South Korea /Technology

Ruling Party Erupts Over 'Semiconductor Honam-ization' Plan, Citing Regional Conflict

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The ruling People Power Party (PPP) is strongly opposing the government's plan to establish a second national semiconductor cluster in the Gwangju-Jeonnam region.
  • PPP lawmakers, particularly from the Daegu-Gyeongbuk (TK) area, argue that the decision is politically motivated and favors one region over others, potentially exacerbating regional conflict.
  • They contend that semiconductor industry decisions should be based on market competitiveness and existing industrial infrastructure, highlighting the strengths of the TK region.

The ruling People Power Party (PPP) erupted in protest on Tuesday against the government's initiative to establish a second national semiconductor cluster in the Gwangju and Jeonnam regions. Party leaders and lawmakers, particularly those from the Daegu-Gyeongbuk (TK) area, decried the plan as a politically driven move that unfairly concentrates resources in one specific region, potentially fueling existing regional tensions.

This administration still hasn't come to its senses. It intends to send our semiconductor industry, the backbone of our economy, to Honam.

โ€” Jang Dong-hyukThe PPP leader criticized the government's plan to establish a semiconductor cluster in the Gwangju-Jeonnam region.

During a party leadership meeting, PPP leader Jang Dong-hyuk, speaking publicly for the first time since his hospital discharge, criticized the administration, stating, "This administration still hasn't come to its senses. It intends to send our semiconductor industry, the backbone of our economy, to Honam (Gwangju-Jeonnam)." He emphasized that decisions regarding such massive investments, involving hundreds of trillions of won, should be driven by corporate assessments of essential factors like water, electricity, and workforce availability, rather than political considerations. Jang further alleged that President Yoon Suk Yeol is personally pressuring for the cluster's placement in the Honam region, referencing a past controversial remark.

Is the government trying to use this important semiconductor industry as a spark to ignite regional conflict?

โ€” Shin Dong-wookA PPP supreme council member questioned the government's motives behind the semiconductor cluster decision.

Shin Dong-wook, a supreme council member, echoed these sentiments, questioning if the government was intentionally using the vital semiconductor industry as a "spark to ignite regional conflict." He directly addressed Samsung Group Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won, urging them not to make investment decisions in this manner. Meanwhile, PPP lawmakers from the Daegu-Gyeongbuk region held a separate press conference, asserting that national semiconductor industry development should be dictated by market forces and competitiveness, not political choices. While stating they did not oppose Gwangju's development, they stressed that industrial competitiveness must be the primary criterion.

National semiconductor industry development must be based on market competitiveness, not political choices.

โ€” PPP Lawmakers from Daegu-GyeongbukIn a joint press conference, these lawmakers argued against politically motivated industrial development.

These lawmakers highlighted the Daegu-Gyeongbuk region's established role as a core hub for semiconductor materials, parts, and equipment, along with its industrial base centered around the Gumi National Industrial Complex and advanced manufacturing capabilities. Lee In-sun, a PPP lawmaker and chairman of the party's Daegu chapter, suggested the timing of the cluster's push was politically motivated, coinciding with the election of PPP candidates in Daegu-Gyeongbuk and ahead of the main opposition Democratic Party's national convention. Former PPP lawmaker Yoo Seung-min and independent lawmaker Han Dong-hoon also voiced criticism on social media, demanding explanations for the decision and warning against using semiconductor investments as political leverage.

We demand President Yoon Suk Yeol's answer to the question: 'Semiconductor investment, why Honam? Why not coexistence and balance between Yeongnam and Honam?'

โ€” Yoo Seung-minThe former lawmaker questioned the regional allocation of semiconductor investments on Facebook.
DistantNews Editorial

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