On June 29, at the Blue House guesthouse, President Lee Jae-myung honored two business leaders, Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won, calling them "national heroes" for their commitment to a massive investment in semiconductors and AI. This moment marked a bold decision by the government and industry to declare the "Three Mega Projects for South Korea's Great Leap Forward," a significant gamble for the nation's future. This initiative is genuinely welcomed.
From Kim Dae-jung's High-Speed Network to Lee Jae-myung's Semiconductors
There are pivotal moments in a nation's history when visionary leadership and bold infrastructure investments change its fate. A prime example is former President Kim Dae-jung's commitment to building a high-speed information and communication network in the aftermath of the financial crisis. His decision to prioritize information technology despite late industrialization laid a solid foundation for South Korea to become a global IT powerhouse and a hub for content creation.
The current semiconductor and AI mega project could also serve as a historical turning point for a second leap forward. The plan to solidify South Korea's position as an "irreplaceable player" in the memory semiconductor competition, a key asset in the age of artificial intelligence, is both justified and timely. While the proactive investments in information technology during the financial crisis acted as a shield against adversity, this project represents a spear aimed at the future.
The Painful Questions Raised by the Iran War
For this ambitious blueprint to succeed, it is crucial to address the security realities at hand. The precision strikes on Iran's nuclear facilities by Israel and the United States in June 2025 starkly illustrated how modern warfare has evolved. Even deep underground facilities were not spared. The focus of warfare has shifted from territorial conquest to the "neutralization of strategic assets and critical infrastructure" of adversaries. The very grammar of war has changed.
Applying this harsh reality to the Korean Peninsula reveals a national Achilles' heel: the world's largest memory semiconductor production base lies within North Korea's missile range. Pyeongtaek, the heart of semiconductor production, is located just over 100 kilometers from the demilitarized zone. While the decision to disperse new clusters further south represents a meaningful security advancement, the geographical constraints of the Korean Peninsula still leave it vulnerable.
Three Layers of Geopolitical Vulnerabilities
The threat is not limited to physical missiles. We are already exposed to three layers of structural vulnerabilities. First, there is the "supply chain vulnerability." China controls 98% of gallium refining for semiconductors and over half of germanium, weaponizing rare earth elements. Second, there is the "geopolitical vulnerability." Our companies stand at the fault line between Washington's stringent export controls on China and Beijing's ambitions for technological self-sufficiency. Despite supplying 70% of the world's DRAM, they are caught in the crossfire of the G2 power struggle. Third, there is the "production concentration dilemma." Global clients are extremely wary of risks associated with concentrating advanced production capabilities in a single region. As investments in the hundreds of trillions of won are executed, these three risks will proportionally expand.
Proposing a 'Semiconductor Peace Economy'
Advanced semiconductor factories require unimaginable resources. A single cluster in Yongin demands power equivalent to ten nuclear reactors and 1.5 million tons of water daily. The government's commitment to ensure power and water supply along with one-stop administrative support is a step in the right direction. However, one critical, invisible infrastructure is missing: "peace." Just as factories halt without electricity and water, without a stable security environment, even the most advanced technologies can quickly become hostages to geopolitics. The greatest risk to South Korea's advanced industries remains North Korea's nuclear and missile capabilities.
In the past, national security served as a protective fence for industry, but now advanced industries themselves are core assets and weapons of national security. Furthermore, peace has become the most powerful "essential infrastructure" for maintaining the value of these industries and attracting global investment. Technological superiority alone is insufficient. We must be both the world's leading semiconductor nation and a safe haven where global capital can invest with confidence. This requires structurally reducing the risk of war on the Korean Peninsula, diversifying supply chains, and maintaining strategic balance amid U.S.-China rivalry through sophisticated diplomatic capabilities. Only by building a "peace gap" on top of our technological edge can the three mega projects be realized. Making South Korea the "world's number one peace economy" is the true national strategy.
The Most Advanced Factory Requires the Most Sophisticated Blueprint for Peace
The reality is challenging. Dialogue channels between the North and South are severed, communication with the U.S. is stalled, North Korea is tightening ties with China and Russia, and Japan is pursuing military power. The Taiwan Strait remains a powder keg for U.S.-China military clashes. Security uncertainties surrounding the Korean Peninsula are amplifying rather than easing. In this precarious environment, for astronomical industrial investments to bear fruit, it is essential to contain North Korea. True deterrence against a North Korea armed with nuclear weapons and missiles stems from fundamentally altering its strategic calculus. An overwhelming deterrent that reinforces the notion that provocation and war lead to regime collapse is essential. Additionally, a crisis management system that reduces the risk of miscalculation and accidental conflict to zero must be established, including restoring dialogue channels and direct lines of communication.
We can no longer remain passive "face followers" in an international order dominated by great powers. An active stance is needed to set the stage and initiate a peace process. The "problematic awareness and commercial sensibility" left by former President Kim Dae-jung is urgently required to address the massive investment blueprint alongside the harsh security realities we face today.
It is time to ask ourselves: if we must build the world's most advanced semiconductor factory on a dangerous powder keg, shouldn't our capacity to manage that risk and create peace also be world-class? Next to the blueprint for an unprecedented industrial leap, I sincerely hope to see a sophisticated "blueprint for peace" that addresses the structural threats on the Korean Peninsula.
* This article has been translated by AI.
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