Debate Erupts Over Semiconductor Cluster Location in Honam

By Kim SeongSeo Posted : October 6, 2026, 13:52 Updated : October 6, 2026, 13:52

On October 6, a heated debate over the location decision for the Honam semiconductor cluster and the potential for power and water supply unfolded simultaneously in the National Assembly's Industry, Trade, and Energy Committee and the Climate, Energy, Environment, and Labor Committee. Opposition lawmakers accused the government of effectively pressuring companies to invest in Honam, focusing their inquiries on the decision-making process and the feasibility of power supply. The government reaffirmed its stance that the final location decision rests with the companies.

Kim Jeong-kwan, Minister of Trade, Industry and Energy, stated during the audit that the government made proposals to companies in need of production sites, but the ultimate decision was made by the companies themselves. This response came amid concerns from opposition lawmakers that the Ministry of Trade, Industry and Energy's focus on semiconductor investment in Honam could lead to inequities with other regions and that the decision-making process lacked transparency.

In this context, Rep. Jo Gi-yeon of the People Power Party questioned whether companies had initially proposed investing in the southwestern region, to which Minister Kim replied, "There were indeed such discussions." However, Rep. Jo countered that, based on confirmations from companies like Samsung Electronics and SK Hynix, they had never indicated a preference for a specific region, suggesting a 'truth battle' between the government and the companies.

Rep. Yoon Han-hong, also from the People Power Party, noted the discrepancy between the government's assertion that companies made the decision and the companies' claims that the government had made the decision. Minister Kim responded that companies must consider various sites, and the government also proposed multiple locations, including Gwangju and non-Honam areas, before the companies made their final choice.

Meanwhile, the Climate, Energy, and Environment Committee also addressed the Honam semiconductor issue. Rep. Yoon Jae-ok of the People Power Party referenced past comments by SK Group Chairman Chey Tae-won, questioning whether the decision on the Honam semiconductor location was made by the companies or the government. In response, Kim Sung-hwan, Minister of Climate and Energy, stated that he was not well-versed in the specifics since it falls under the Ministry of Trade, Industry and Energy, but acknowledged that there must have been inter-departmental discussions regarding the feasibility of power and water supply for a semiconductor factory in Honam.

Conversely, Rep. Shin Jeong-hoon of the Democratic Party emphasized that the Honam semiconductor initiative is a balanced development strategy aimed at alleviating the concentration of industry in the Seoul metropolitan area and diversifying the national industrial landscape. Minister Kim concurred, stating that the decision to build a semiconductor facility in Honam was made considering the concerns of the Lee Jae-myung administration and the final judgment of the companies involved.





* This article has been translated by AI.

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