Honam Semiconductor Cluster Criticism Forum Held, but Companies and Government Ministries Absent... "Pressure from the Lee Jae Myung Administration"

[Financial News] The People Power Party held a criticism forum over the Honam Semiconductor Cluster project promoted by the Lee Jae Myung administration and the Democratic Party of Korea. However, the invited semiconductor companies and government ministries, including the Ministry of Trade, Industry and Energy, did not attend.
The People Power Party Policy Committee, along with lawmakers Koh Dong-jin and Kim Mi-ae, both former Samsung Electronics executives, held a policy forum on June 26 to discuss the Honam Semiconductor Cluster issue.
At the forum, Koh said, "We invited six semiconductor companies today to hear directly from businesses, but they could not attend because they felt burdened by the government." He added, "Rep. Kim invited two ministries, the Ministry of Trade, Industry and Energy and the Ministry of Climate, Energy and Environment, but they reportedly said attendance would be difficult."
He argued that the government's public push for the Honam Semiconductor Cluster amounted to pressure on companies rather than support, saying, "It is not desirable to help corporate activity and then openly apply pressure."
Ahn Gi-hyun, executive director of the Korea Semiconductor Industry Association, attended the forum on behalf of the industry and said he supports both the existing Yongin semiconductor cluster and the Honam cluster. He said that, as semiconductor demand grows, additional industrial complexes should be built alongside the Yongin cluster.
Koh also criticized the process of acquiring land for the cluster and building infrastructure such as power and water supplies, saying, "If land is not acquired quietly, prices will rise and cause difficulties. Infrastructure investment for power and water requires a great deal of money, and it is frustrating to see things moving quickly without knowing how much preparation has actually been done."
He also pointed to specific obstacles. First, renewable energy sources such as solar power, which are considered key power sources for Honam, fall far short in both capacity and stability for use in a semiconductor cluster. Second, there are no clear incentives or living conditions to attract large numbers of workers, including suppliers of materials, parts and equipment, to Honam.
In that context, Koh called the project "a provocative show to boost the Blue House's approval ratings" and predicted, "I doubt companies will actually invest in Honam even after the Lee Jae Myung administration's term ends."
The People Power Party says it should focus on reinvesting excess tax revenue generated by the semiconductor boom rather than wasting resources on dispersing semiconductor clusters.
Floor leader Jeong Jeom-sik said he agreed with Hwang Cheol-seong, a chaired professor in the Department of Materials Science and Engineering at Seoul National University, who argued in his forum presentation that excess tax revenue should be used to cultivate semiconductor talent. Jeong added, "We will work to make that happen in the National Assembly."

uknow@fnnews.com Kim Yun-ho Reporter