Samsung Electronics, SK Hynix to expand investment in Chungcheong, Honam regions; Haenam enterprise city emerges as top RE100 industrial complex candidate
The government is set to launch a major project to expand investment in regional areas, led by the semiconductor industry. Announcements are expected to roll out sequentially from late this month, covering expanded investment by Samsung Electronics and SK Hynix in the Chungcheong and Honam regions, the construction of a compound semiconductor research and development fab in Haenam, South Jeolla Province, and the designation of RE100 — short for 100 percent renewable energy — industrial complexes.
Analysts say the Lee Jae-myung administration's vision of balanced national development is taking concrete shape, with the government aiming to disperse advanced industries concentrated in the Greater Seoul area to regional hubs and create new engines of growth.
According to political circles and South Jeolla Province officials, the government plans to unveil specifics of large-scale regional investment projects at a meeting between President Lee and the heads of major conglomerates at Cheong Wa Dae on June 29. Earlier, at a press conference marking his first anniversary in office on Monday, Lee said he would "move toward becoming a nation of supercompetitive industries where all citizens and all parts of the country equally share the opportunities and benefits of growth," adding that he would "soon present to the public a large-scale investment project that will bring about a major transformation in our growth strategy."
The government and political circles are discussing plans to disperse semiconductor production bases — currently concentrated in the Greater Seoul area — to the Chungcheong and Honam regions. The aim is to pursue balanced regional development and foster advanced industries simultaneously through new investment or scale-up projects by Samsung Electronics and SK Hynix.
Various formats are under consideration, including back-end semiconductor packaging factories. Jangseong and Gwangju in South Jeolla Province and Onyang in South Chungcheong Province have been mentioned as candidate sites. Samsung Electronics is reportedly reviewing options including a packaging factory in Gwangju. SK Hynix is also seen as a possible candidate to locate some back-end processing facilities, including packaging operations, in the Honam region.
A plan to establish a compound semiconductor R&D fab in the Haenam enterprise city in South Jeolla Province is also expected to be announced in conjunction with the launch of the Jeonnam-Gwangju integrated special city on July 1. Samsung is among the companies confirmed to participate in the project.
The Haenam enterprise city is also a leading candidate for an RE100 industrial complex, alongside the compound semiconductor industrial complex. An RE100 industrial complex is one where 100 percent of the electricity used by tenant companies comes from renewable energy sources such as solar and wind power.
To develop the RE100 industrial complex, the government is reviewing plans to tap South Jeolla Province's abundant solar and offshore wind resources. Discussions are underway on using state-owned reclaimed land in the Haenam and Jindo areas to build large-scale solar power facilities and energy storage systems. The goal is to supply advanced manufacturers with stable and relatively affordable renewable energy.
The RE100 industrial complex is one of the Lee administration's flagship projects — so central that Kim Yong-beom, the presidential office's policy chief, personally briefed reporters on it shortly after the administration took office last July. If a special law passes, the government plans to provide substantial support, including corporate and income tax reductions and power infrastructure.
oskymoon@heraldcorp.com
