Samsung Electronics and SK Hynix's new factory plans spark regional rivalry: Korean media editorial calls for 'semiconductor politics' following DP party congress, with tensions emerging between Yeongnam and Chungcheong, even echoing the longstanding conflict between Jeollanam-do and Jeollabuk-do
Samsung Electronics and SK Hynix are currently discussing plans with the South Korean government to build front-end fabrication (FAB) lines worth several hundred trillion won in Gwangju and Jeollanam-do. On the 25th, President Lee Jae-myung stated: "To overcome the concentration of power in the Seoul metropolitan area, strategic industrial diversification is essential." While the government justifies this move as promoting balanced regional development, the issue has evolved beyond mere politics into a nationwide regional conflict. There remains no clear or rational explanation as to why this region should be selected, nor any transparent economic rationale behind the decision.
The leadership of the People Power Party criticized the move as an "official economy sacrificing semiconductors as political offerings." MPs from Daegu and North Gyeongsang held a press conference arguing that "Daegu and North Gyeongsang are the core hubs for semiconductor materials, components, and equipment industries," emphasizing their geographical advantages.
After opposition from the opposition parties, the Democratic Party criticized the proposal, saying it would intensify regional divisions. However, while Gwangju and Jeollanam-do representatives within the DP welcomed the plan, those from Jeollabuk-do argued: "[The negative side effects of concentrating in Yeoju must not turn into concentration solely in Gwangju]"—demanding a dispersed deployment across both Jeollanam-do and Jeollabuk-do. During local elections, promises were made to bring semiconductor factories worth 20 trillion won (approximately RMB 87.8 billion) to Jeollabuk-do, but the outcome became "Jeollabuk-do being sidelined." Even proposals to divert water from the Chungcheong region to the Honam industrial zone have sparked backlash from Chungcheong. Political disputes, combined with regional tensions among Yeongnam, Honam, Chungcheong, and the Jeolla regions, have caused the situation to deteriorate further.
The Blue House maintains that the semiconductor cluster investment is driven by economic considerations rather than political ones. Yet, before and after the decision, President Lee Jae-myung met with leaders from Samsung and SK, and the Blue House Policy Office stated that discussions had entered their final stages. Independent MP Han Dong-hoon remarked: "Semiconductor site selection must not be used to serve specific political agendas or intra-party competition." Critics argue this decision was politically motivated—crafted by pro-Lee factions aiming to gain votes ahead of the Democratic Party’s full-scale convention scheduled for August.
Due to the controversy over semiconductor cluster location, the entire country has been thrown into turmoil, like a hive of bees suddenly disturbed. Concerns long anticipated—about political interference in economic matters, especially investments in nationally strategic industries such as semiconductors—are now becoming reality. Just as the issue of excessive semiconductor profits and bonus schemes has weakened the industry’s competitiveness, this current dispute over semiconductor parks is exacerbating social divisions. A decision ostensibly made under the banner of regional balance is turning every region across the nation into a battleground tearing itself apart.
Source: Chosun Ilbo
Original article: toutiao.com/article/1869032785885188/
Disclaimer: The views expressed in this article are solely those of the author