Kim Yong-beom on Samsung and SK's rumored Honam semiconductor investment: "Location discussions are under way, and Yongin remains unchanged"

[Financial News] Kim Yong-beom, chief of policy at the Blue House, said on the 24th that, regarding the investment direction of Samsung Electronics and SK hynix's Honam semiconductor cluster, "it is true that serious discussions are taking place among the two companies, the ministries and the government on how to handle the location and related issues."
Kim made the remarks at a Kwanhun Club forum in Seoul's Jung-gu district when asked about the investment direction of Samsung Electronics and SK hynix's Honam semiconductor cluster.
He also drew a clear line, saying the existing Yongin semiconductor cluster plan would not be moved to another region. "This is absolutely not about abandoning what was planned for Yongin and moving it elsewhere," he said. "It is not about relocating what is in the Capital Region. It is about creating a new cluster."
He added, "We will build everything we can in the Capital Region," making clear that the existing semiconductor cluster plan in the Capital Region will proceed as scheduled.
Kim said the background to the additional location discussions is the faster-than-expected growth in semiconductor demand. "For SK hynix, the fourth plant, which was originally scheduled as the final one, is now set to be completed in 2034," he said. "That means what had been planned for 2044 needs to be built by 2034."
He said the same applies to Samsung Electronics. "Samsung also has plans through 2048," he noted. "It will probably need to be moved up to around 2034 or 2035." He added, "There is no more room in the Capital Region. There is no land, and neither power nor water is available."
Kim explained that the need to secure a huge site for the next stage, seven to eight years down the road, is behind the talks. "The companies and the government are seriously discussing how to support such a massive site, along with power and water supply," he said.
He also said the talks are nearing completion. "This is not an early-stage discussion. It is now reaching the final phase," he said. "Once it is finalized, we plan to arrange a public briefing with the companies and the ministries together, and we expect that opportunity to come soon."
On concerns about regional conflict, Kim said, "Rather than creating friction between regions, the goal is to find the most suitable location for the industry's characteristics." He added, "These companies have market capitalizations of more than $1 trillion. They are not going to make such huge investment decisions lightly just because the government talks about balanced growth in principle."
Addressing concerns that the Southeast Region of Korea may be left out, he said, "The Southeast Region is where Korea's manufacturing industry began, and most of the country's manufacturing belt is concentrated there." He added, "All the industries that form the foundation of Physical AI are in the Southeast Region. The Southeast Region will be the center of Physical AI."
He also said, "There will be investment by region as well, including the Honam Region, the Chungcheong region, the Southeast Region and Gangwon Province. We will make meaningful investments in all of them."
Kim stressed that semiconductors are now at the very bottom of the supply chain. "This is not just a problem for Korea," he said. "What matters is ensuring that the pace does not slow down and that disruptions do not occur worldwide."
He added, "The two companies must secure memory production capacity in time and provide support so that the AI Revolution that has already begun can proceed smoothly around the world. There must be absolutely no confusion."
cjk@fnnews.com Choi Jong-geun Reporter