South Korean Candidates Flood Local Election Race with Unrealistic Semiconductor Pledges

As the June 3 local elections approach, a frenzy of 'semiconductor factory attraction' pledges has gripped the campaign trail across South Korea. Candidates, from metropolitan mayors to local council leaders, are leveraging the global 'semiconductor boom,' fueled by the AI revolution, to win votes. Dong-A Ilbo observes a concerning trend of 'overheating' promises, with candidates in six major regions alone rolling out ambitious, often grandiose, pledges.

These promises range from attracting 10 trillion won in semiconductor facilities within their first year to establishing massive 30 trillion won funds and fostering secondary semiconductor industrial complexes. While the desire to invigorate regional economies is understandable, history shows that many such grand pronouncements made during election cycles often amount to empty promises. It is particularly noteworthy that some incumbent mayors are repeating pledges made four years ago, suggesting a lack of progress or a cyclical pattern of unrealistic commitments.

The reality of attracting semiconductor plants, which require hundreds of trillions of won in investment, is far more complex. Even with governmental backing and international pressure, securing such investments is a monumental task. The editorial in Dong-A Ilbo rightly points out that local candidates cannot simply make these pledges without prior consultation with the central government or understanding the long-term investment plans of major corporations. The controversy surrounding the potential relocation of the Yongin semiconductor complex last year, sparked by a ministerial remark, serves as a cautionary tale of how semiconductor policy can become entangled in political disputes.

Instead of making 'whatever-the-cost' investment pledges that risk misleading voters and politicizing corporate decisions, Dong-A Ilbo urges candidates to focus on tangible, foundational reforms. This includes assessing and improving the local investment infrastructure – ensuring stable electricity and water supplies, fostering local universities to produce talent sought by industry, and creating a business-friendly regulatory environment. The message is clear: voters should be wary of 'no-questions-asked investment attraction' promises and demand concrete plans for creating an environment where companies naturally want to invest.