Daegu city, North Gyeongsang Province and lawmakers representing the Daegu-North Gyeongsang (TK) region called on the government Sunday to publicly disclose the criteria used to select sites for semiconductor investment in the Honam region, saying national strategic industries must not be decided by political logic.
North Gyeongsang Governor Lee Cheol-woo, Daegu Mayor-elect Choo Kyung-ho, and Assembly members Lee In-seon and Gu Ja-geun held an emergency press conference at the National Assembly on Sunday, warning that if a semiconductor front-end fabrication plant is built in Gwangju or South Jeolla Province, related companies would follow, in effect devastating the Daegu-North Gyeongsang economy.
"The siting of a front-end fab facility must take into account a comprehensive range of factors — power supply, industrial water, the supplier ecosystem, skilled labor and logistics," Governor Lee said. "I have serious doubts about whether this announcement was made after a sufficient evaluation process."
He added that if a front-end fab is established in Gwangju or South Jeolla Province, a large number of related companies would likely relocate, and the Daegu-North Gyeongsang regional economy would in effect be devastated.
The group also said the TK region already possesses the core infrastructure needed to anchor South Korea's semiconductor industry.
They noted that the region is home to a semiconductor materials and components specialized complex designated in 2023, anchored by companies including SK Siltron, LG Innotek, Wonik QnC, Isupetasys, S&S Tech and Daegutec, along with more than 470 semiconductor partner firms and over 1,700 materials, parts and equipment specialists that together form an established industrial ecosystem.
Local universities and research institutions — including Pohang University of Science and Technology, DGIST, Kyungpook National University and Kumoh National Institute of Technology — continuously produce highly skilled specialists, they said. The region also has sufficient infrastructure for semiconductor factory operations, including stable nuclear-based power supply, industrial water and logistics networks, they added.
Mayor-elect Choo said that immediately after a one-on-one meeting with the head of a major conglomerate, the government announced a massive investment plan and national support policy for a specific region, yet the most critical elements — the site selection criteria and review process — were never made public. "The public deserves a transparent account of when, by whom and on what basis the evaluation was conducted," he said.
He further argued that whether Daegu and North Gyeongsang Province were even considered as candidates, and if so why they were excluded, is a critically important question. "If the region was left out of consideration despite being the optimal non-metropolitan location, that goes beyond mere regional neglect — it undermines the rationality of national industrial policy," he said.
Assembly member Lee In-seon said national strategic industries must not become a tool for political gains in any particular region. "We will pursue this through standing committee hearings, the national audit and, if necessary, a parliamentary investigation, to determine whether there was any political pressure or outside interference in the government's policy decision," Lee said.
Assembly member Gu Ja-geun said the government steering or pressuring companies to invest in a specific region could amount to self-inflicted damage to the semiconductor industry's competitiveness and supply chain stability. "The government should focus on creating an environment where companies can freely invest wherever they are most competitive," Gu said.
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