[Editorial] Debate over semiconductor investment in Honam intensifies; location matters more than anything else

The 'National Report Meeting on the Three Major Mega Projects for Korea's Great Leap Forward,' chaired by President Lee Jae-myung, will be held on the 29th. Samsung Electronics is expected to announce an investment plan worth more than 1,000 trillion won at the event. In particular, it is expected to unveil a plan to build a large-scale semiconductor cluster in Honam.
As debate intensifies over the creation of a semiconductor cluster in Honam, Samsung Electronics is likely to announce Honam as its semiconductor investment site for now. At the center of the controversy is the concentration of semiconductor investment in Honam. As criticism from the opposition grew stronger, President Lee explained on social media on the 28th that the decision was made because CEOs judged it would benefit their companies, following efforts by public officials to improve the business environment, including water supply, power, land, and infrastructure, and to persuade and request companies.
President Lee's remarks suggest that the semiconductor cluster in Honam was not driven by political motives, but rather that all the necessary conditions were in place and the location was chosen after persuading companies. It can be interpreted as meaning that the government asked Samsung Electronics to build a semiconductor plant in Honam while explaining that the environment and conditions there were excellent. The People Power Party argued that this amounted to outside pressure and abuse of authority.
We have said that political influence should not be allowed to interfere in the creation of semiconductor complexes. President Lee described it as administrative guidance or administrative support, but in any case, it appears that the political circle or the government was involved. The government and politicians can play a role in administratively supporting industrial complex development and attracting companies. However, it is difficult to draw a clear line on how far such involvement becomes political interference.
President Lee's remarks can be seen as falling somewhere between intervention and guidance. Even if it was administrative guidance, it is regrettable that the process was not transparent. News of the semiconductor investment in Honam emerged less than a month after the June 3 local elections. Claims that the Yongin semiconductor cluster would be moved to Honam also surfaced earlier this year. If so, discussions over a third semiconductor cluster involving Samsung Electronics and others must have taken place in the meantime, and government involvement in that process appears clear.
Honam and Yeongnam, both outside the Seoul metropolitan area, are equally designated as regions for balanced development. Because the two regions are politically divided, the fallout from the site selection is bound to be significant. That is why the decision should not have been made in haste. Instead, the central government, local governments, and companies should have held open discussions. Without that, announcing out of the blue that a semiconductor plant would be built in Honam could only provoke backlash.
The top priority in selecting a factory site is, above all, the conditions and environment. The next consideration is the government's push for balanced regional development. No matter how important regional development is, a factory cannot be built if the conditions are poor. The government likely chose Honam as the site because it judged the conditions to be favorable and the move to be helpful for regional development. Honam has fewer industrial complexes than Yeongnam, so if the conditions are the same, there is a rationale for building a semiconductor cluster there.
If the conditions are good and the rationale is strong, there is no reason not to disclose the process. Industrial complexes in Yeongnam are also struggling, except for the automotive sector. Claims of reverse discrimination against Yeongnam are likely to emerge. There is still time. While companies should retain final decision-making authority, the site selection should be discussed more openly. Building clusters for promising industries other than semiconductors in Yeongnam could also be an alternative.