Kim Sung-hwan, the Minister of Climate, Energy and Environment, visited the candidate site for a substation in the Honam semiconductor industrial complex in Gwangju on November 11. He stated, "We are preparing to order new transformers instead of relocating existing ones, and we aim to complete the first phase of the power grid by the end of 2028."
After inspecting the substation site, Minister Kim held a meeting at the Hwasun Community Center with residents scheduled to be displaced by the Dongbok Dam, where he explained the plans for power and water supply and support measures for the residents.
Previously, the government had considered using transformers designated for substations in other regions, such as Daegu, to expedite the construction timeline for the Honam semiconductor industrial complex from the end of 2029 to the end of 2028. This raised concerns about potential delays in the completion of substations in those areas.
Minister Kim clarified the rationale behind considering the use of transformers from other regions, saying, "It was reviewed considering the processes in those areas. However, to avoid misunderstandings, we decided to proceed with new orders."
The government plans to supply 3 gigawatts (GW) of power through the first phase of the project. Once the locations for semiconductor production facilities by Samsung Electronics and SK Hynix are confirmed, the second phase of the power supply plan will be developed.
The location for the substation, targeted for construction to begin in January 2027, is expected to be finalized by the end of this year.
Minister Kim noted, "The locations for the semiconductor fabs will soon be determined primarily by the Ministry of Industry and the Ministry of Land, and I expect the substation location will also be decided within this year."
He added, "We will ensure that the construction of semiconductor factories is not delayed due to the power and water supply responsibilities of the Ministry of Climate."
After inspecting the substation site, Minister Kim held a meeting at the Hwasun Community Center with residents scheduled to be displaced by the Dongbok Dam, where he explained the plans for power and water supply and support measures for the residents.
Previously, the government had considered using transformers designated for substations in other regions, such as Daegu, to expedite the construction timeline for the Honam semiconductor industrial complex from the end of 2029 to the end of 2028. This raised concerns about potential delays in the completion of substations in those areas.
Minister Kim clarified the rationale behind considering the use of transformers from other regions, saying, "It was reviewed considering the processes in those areas. However, to avoid misunderstandings, we decided to proceed with new orders."
The government plans to supply 3 gigawatts (GW) of power through the first phase of the project. Once the locations for semiconductor production facilities by Samsung Electronics and SK Hynix are confirmed, the second phase of the power supply plan will be developed.
The location for the substation, targeted for construction to begin in January 2027, is expected to be finalized by the end of this year.
Minister Kim noted, "The locations for the semiconductor fabs will soon be determined primarily by the Ministry of Industry and the Ministry of Land, and I expect the substation location will also be decided within this year."
He added, "We will ensure that the construction of semiconductor factories is not delayed due to the power and water supply responsibilities of the Ministry of Climate."
During the meeting with residents affected by the Dongbok Dam expansion, discussions focused on compensation and livelihood measures for those displaced. The government plans to raise the Dongbok Dam by approximately 15 meters to secure the water needed for the semiconductor industrial complex. This is expected to result in the relocation of about 280 households from 15 villages in the Hwasun and Damyang areas.
The Korea Water Resources Corporation aims to announce the basic plan in the first half of next year, and if the schedule proceeds as planned, compensation procedures will begin in the second half of the year.
Residents expressed concerns that their land has been undervalued due to long-term regulations on water source protection, and they will lose agricultural income and various subsidies after relocation. They requested separate livelihood measures, particularly proposing the introduction of a cooperative pension that would provide monthly payments of 1.5 to 2 million won based on household size.
Minister Kim responded, "Direct support in the form of a pension seems impossible. However, we can consider establishing a solar cooperative where profits from solar facilities are distributed to members as an indirect pension."
He also took a cautious stance on varying compensation standards for individual landowners, stating, "From the perspective of managing water and dams nationwide, it is not easy to apply different standards to specific regions. We will work to improve the living conditions of residents by linking local government support funds with indirect government assistance programs."
He concluded, "Whether through direct or indirect support, I promise to ensure that the residents of the affected areas receive assistance in terms of income and living conditions, as part of my responsibility as Minister."
The Korea Water Resources Corporation aims to announce the basic plan in the first half of next year, and if the schedule proceeds as planned, compensation procedures will begin in the second half of the year.
Residents expressed concerns that their land has been undervalued due to long-term regulations on water source protection, and they will lose agricultural income and various subsidies after relocation. They requested separate livelihood measures, particularly proposing the introduction of a cooperative pension that would provide monthly payments of 1.5 to 2 million won based on household size.
Minister Kim responded, "Direct support in the form of a pension seems impossible. However, we can consider establishing a solar cooperative where profits from solar facilities are distributed to members as an indirect pension."
He also took a cautious stance on varying compensation standards for individual landowners, stating, "From the perspective of managing water and dams nationwide, it is not easy to apply different standards to specific regions. We will work to improve the living conditions of residents by linking local government support funds with indirect government assistance programs."
He concluded, "Whether through direct or indirect support, I promise to ensure that the residents of the affected areas receive assistance in terms of income and living conditions, as part of my responsibility as Minister."
* This article has been translated by AI.
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