People Power Party lawmakers from Daegu and North Gyeongsang Province hold emergency press conference

Samsung Electronics, SK Hynix Honam investment plans spark backlash over southeastern region's exclusion

'We don't oppose Gwangju's development, but electoral logic must not drive industrial policy'

The semiconductor cluster site in Cheoin-gu, Yongin, Gyeonggi Province [Yonhap]
The semiconductor cluster site in Cheoin-gu, Yongin, Gyeonggi Province [Yonhap]

As plans for a massive semiconductor cluster investment by Samsung Electronics and SK Hynix in the Honam region take shape, political backlash is intensifying, with critics warning that the southeastern part of the country is being left behind.

Cheong Wa Dae has said industries underpinning physical AI will be concentrated in the southeastern region, but calls are growing — particularly from the opposition — for the government to make all semiconductor-related policy decisions fully transparent.

People Power Party lawmakers from the TK region — Daegu and North Gyeongsang Province — held an emergency press conference at the National Assembly on Wednesday, saying that while balanced national development is essential, "industrial policy must not be driven by political logic under the banner of balanced regional development."

"We are concerned that the government's approach of selecting specific regions and concentrating large-scale incentives and policy packages there may be influencing private companies' investment decisions and distorting the natural development of the industrial ecosystem," the lawmakers said.

They said the semiconductor industry is "a national strategic industry on which South Korea's future depends," adding that its competitiveness "must be determined not by political considerations but by rigorous economic and industrial logic — including workforce, power, water, research and development capacity, supply chains, logistics systems and the broader corporate ecosystem."

The lawmakers particularly said, "We do not oppose Gwangju's development," but warned that if political consideration for a specific region translates into industrial policy, it "will not only deepen regional conflict but could also weaken the country's overall industrial competitiveness."

They doubled down, saying the government "must not approach national strategic industries through electoral logic or political interests," and that "the future of the semiconductor industry must be a victory for all of South Korea, not a victory for any particular region."

On the investment decision for the semiconductor cluster, the lawmakers proposed full transparency in all policy decision-making processes, non-interference by political forces in private companies' investment decisions, and the pursuit of national strategic industries strictly in accordance with industrial competitiveness and economic principles.

Meanwhile, Kim Yong-beom, Cheong Wa Dae's policy chief, said at a Kwanhun Club forum on Tuesday that the government views semiconductors, AI data centers and physical AI as interconnected industries. "The physical AI side will be centered on the southeastern region," Kim said.

Asked whether the semiconductor cluster in Yongin, Gyeonggi Province, was being relocated to the Honam region, Kim said that was "absolutely not" the case. "We are creating new clusters — in Honam and elsewhere — not moving what is already in the greater Seoul area," he said.

Political circles in the southeastern region have continued to push back, saying that while large-scale investment plans are taking shape for the Honam and Chungcheong regions, "no concrete roadmap — including the scale of corporate investment or support measures — has yet been presented for the southeastern region."

Samsung Electronics and SK Hynix are expected to officially announce detailed investment plans next week, as Cheong Wa Dae moves to support the creation of regional semiconductor clusters, according to political sources.

People Power Party lawmakers from the TK region — Daegu and North Gyeongsang Province — including Lee In-seon (center), chair of the party's Daegu chapter, hold a press conference at the National Assembly on Wednesday regarding plans to establish a second national semiconductor cluster in the Gwangju-South Jeolla area. [Yonhap]
People Power Party lawmakers from the TK region — Daegu and North Gyeongsang Province — including Lee In-seon (center), chair of the party's Daegu chapter, hold a press conference at the National Assembly on Wednesday regarding plans to establish a second national semiconductor cluster in the Gwangju-South Jeolla area. [Yonhap]

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