The development of the Gwangju Semiconductor Industrial Complex, which requires power and water supply, as well as financial support, will be expedited.
This follows the exemption from the preliminary feasibility study.
According to the government and Gwangju Metropolitan City on August 26, during the 37th Cabinet meeting held on August 25 at the Cheong Wa Dae Sejong Room, President Lee Jae-myung presided over the meeting where the exemption from the preliminary feasibility study for four infrastructure and financial support projects related to the southwestern semiconductor industrial complex was unanimously approved.
The preliminary feasibility study is a system that verifies the economic viability and policy justification of large-scale national financial projects in advance. Exemption from this study can significantly accelerate the start of the projects.
During the meeting, President Lee emphasized, "To structurally reorganize the capital region's dominance and create new growth engines in each region, bold and macro-level approaches are necessary. The central and local governments must work as a solid team to pave the way for a better future for South Korea."
The key decision made at the Cabinet meeting was to establish a legal basis for quickly building the power and water supply networks necessary for the operation of the semiconductor complex without legal procedures.
The government plans to apply both the exemption from the preliminary feasibility study and the omission of the feasibility study to the 'Three Mega Project Infrastructure Construction Projects' to accelerate the implementation of the infrastructure needed for the operation of Fab 4.
Power will be supplied through a connection of approximately 20 to 25 kilometers from the Shinjang and Shinkwangju 345kV transmission networks to the complex, with the first phase of about 4GW of power capacity to be established by 2029.
Subsequently, additional direct transmission lines to the complex will be added to meet the total demand of 6.3GW required by Fab 4 and its partner companies, utilizing nuclear and renewable energy as the primary power sources, while also considering liquefied natural gas combined heat and power generation and energy storage systems as supplementary options.
Water supply is estimated to require 650,000 tons daily for the operation of the complex. This will be sourced from the Juam Dam (450,000 tons) and the Jangheung and Naju Dams (100,000 tons each). An additional 300,000 tons from Gwangju's wastewater treatment reuse and 270,000 tons from regional water management reserves will be secured, establishing a system to provide 1.33 million tons daily.
The integrated financial support project for the creation of the southwestern semiconductor cluster has also received confirmation of its feasibility exemption.
This project, which will run from 2027 to 2030, is expected to amount to 6 trillion won and will encompass infrastructure expansion, the establishment of upstream and downstream industrial ecosystems, and workforce development.
The focus is on timely linking investments in new fabs by Samsung Electronics and SK Hynix with public infrastructure to achieve initial mass production by June 2030.
However, the exemption was processed conditionally, based on the revision of the 'Special Act on the Establishment of the Integrated Special City of Jeonnam and Gwangju,' which serves as the legal basis for the project.
* This article has been translated by AI.
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