Yang Hyang-ja, the People Power Party candidate for Gyeonggi Governor, delivers a speech at the opening of her campaign office in Suwon on May 14. [Photo=Yonhap News]
Semiconductors have emerged as a critical issue in the upcoming local elections. With stocks of semiconductor companies like Samsung Electronics and SK Hynix soaring, public interest has surged around topics such as national dividends, union strikes, and the implementation of a special semiconductor law.
On May 17, candidates for Gyeonggi Province’s local and district offices from the People Power Party held a press conference at the party's headquarters in Suwon. They voiced strong criticism regarding the government's proposed implementation guidelines for the special semiconductor law, which reportedly includes a requirement that semiconductor clusters be located outside the Greater Seoul area.
This has sparked complaints of "discrimination against the Greater Seoul area" from candidates representing southern Gyeonggi cities such as Icheon, Yongin, Suwon, Hwaseong, Pyeongtaek, and Ansung. The southern Gyeonggi region is a key hub for the domestic semiconductor industry, housing significant manufacturing, materials, components, equipment, research and development (R&D), specialized personnel, and infrastructure.
Yang Hyang-ja, the People Power Party candidate for Gyeonggi Governor, stated, "Semiconductors are not just an industry; they are the future of South Korea and a core national security industry. We need to achieve balanced development by enhancing existing industrial bases while also nurturing new ones."
Yang, who began her career as a research assistant in Samsung's semiconductor memory design department in 1985 and rose to an executive position in 2014, warned that excluding the Greater Seoul area from the semiconductor cluster could disrupt the supply chain concentrated there. She noted, "Countries like the U.S., Taiwan, and Japan are consolidating national resources around existing semiconductor hubs. If we exclude Gyeonggi Province, we cannot maintain our global competitiveness."
Participants at the press conference issued a joint statement calling for the removal of the clause excluding the Greater Seoul area from the semiconductor cluster, the realistic establishment of criteria for semiconductor cluster designation, the application of regulatory exceptions for national strategic industries to existing semiconductor production bases, and a dual strategy of enhancing existing semiconductor production bases while developing new ones.
Political analysts suggest that semiconductor issues are heating up the local elections. The significant profits generated for shareholders by semiconductor companies like Samsung Electronics and SK Hynix, which have driven growth in the domestic stock market, are seen as a key factor. Many individual investors hold shares in these companies, making any factors affecting their stock prices a nationwide concern.
Given the economic impact of semiconductor factories on Gyeonggi Province, the proposed guidelines could significantly influence public sentiment in the region. The demands from candidates like Yang for clear positions from Democratic Party candidates are closely related to this context.
Additionally, political disputes over accountability for recent setbacks in the semiconductor industry have been recurring. On May 12, Kim Yong-beom, head of the Presidential Policy Office, suggested returning excess corporate tax revenue from the semiconductor boom to the public in the form of national dividends, which drew criticism from conservative factions.
Park Chung-kwon, spokesperson for the People Power Party's central election committee, condemned the proposal as a "state-led declaration of plunder," arguing that it undermines the foundations of a market economy and threatens to regress South Korea into a communist-style distribution system.
The ongoing tensions between Samsung Electronics and its union, which has announced a strike, could also impact voter sentiment in the local elections. Given the nature of the semiconductor industry, the losses from a strike could be substantial. Concerns are rising in the industry that a disruption in supply stability could lead to diminished customer trust and weakened global competitiveness. If this results in a drop in stock prices, it could lead to a loss of shareholder confidence nationwide.
A political insider remarked, "Given the recent stock market trends, a decline in Samsung Electronics and SK Hynix stock prices could directly affect public sentiment. If these events lead to a significant drop in stock prices, it could shift the focus from political disputes to fundamental economic issues, influencing voter behavior."
On May 17, candidates for Gyeonggi Province’s local and district offices from the People Power Party held a press conference at the party's headquarters in Suwon. They voiced strong criticism regarding the government's proposed implementation guidelines for the special semiconductor law, which reportedly includes a requirement that semiconductor clusters be located outside the Greater Seoul area.
This has sparked complaints of "discrimination against the Greater Seoul area" from candidates representing southern Gyeonggi cities such as Icheon, Yongin, Suwon, Hwaseong, Pyeongtaek, and Ansung. The southern Gyeonggi region is a key hub for the domestic semiconductor industry, housing significant manufacturing, materials, components, equipment, research and development (R&D), specialized personnel, and infrastructure.
Yang Hyang-ja, the People Power Party candidate for Gyeonggi Governor, stated, "Semiconductors are not just an industry; they are the future of South Korea and a core national security industry. We need to achieve balanced development by enhancing existing industrial bases while also nurturing new ones."
Yang, who began her career as a research assistant in Samsung's semiconductor memory design department in 1985 and rose to an executive position in 2014, warned that excluding the Greater Seoul area from the semiconductor cluster could disrupt the supply chain concentrated there. She noted, "Countries like the U.S., Taiwan, and Japan are consolidating national resources around existing semiconductor hubs. If we exclude Gyeonggi Province, we cannot maintain our global competitiveness."
Participants at the press conference issued a joint statement calling for the removal of the clause excluding the Greater Seoul area from the semiconductor cluster, the realistic establishment of criteria for semiconductor cluster designation, the application of regulatory exceptions for national strategic industries to existing semiconductor production bases, and a dual strategy of enhancing existing semiconductor production bases while developing new ones.
Political analysts suggest that semiconductor issues are heating up the local elections. The significant profits generated for shareholders by semiconductor companies like Samsung Electronics and SK Hynix, which have driven growth in the domestic stock market, are seen as a key factor. Many individual investors hold shares in these companies, making any factors affecting their stock prices a nationwide concern.
Given the economic impact of semiconductor factories on Gyeonggi Province, the proposed guidelines could significantly influence public sentiment in the region. The demands from candidates like Yang for clear positions from Democratic Party candidates are closely related to this context.
Additionally, political disputes over accountability for recent setbacks in the semiconductor industry have been recurring. On May 12, Kim Yong-beom, head of the Presidential Policy Office, suggested returning excess corporate tax revenue from the semiconductor boom to the public in the form of national dividends, which drew criticism from conservative factions.
Park Chung-kwon, spokesperson for the People Power Party's central election committee, condemned the proposal as a "state-led declaration of plunder," arguing that it undermines the foundations of a market economy and threatens to regress South Korea into a communist-style distribution system.
The ongoing tensions between Samsung Electronics and its union, which has announced a strike, could also impact voter sentiment in the local elections. Given the nature of the semiconductor industry, the losses from a strike could be substantial. Concerns are rising in the industry that a disruption in supply stability could lead to diminished customer trust and weakened global competitiveness. If this results in a drop in stock prices, it could lead to a loss of shareholder confidence nationwide.
A political insider remarked, "Given the recent stock market trends, a decline in Samsung Electronics and SK Hynix stock prices could directly affect public sentiment. If these events lead to a significant drop in stock prices, it could shift the focus from political disputes to fundamental economic issues, influencing voter behavior."
* This article has been translated by AI.
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