President Lee Says Yongin and Pyeongtaek Semiconductor Sites Have Reached Their Limits, Calls for Large-Scale Investment in the Southwestern Region

[Financial News] President Lee Jae-myung said on the 29th, "The existing semiconductor sites centered on Yongin and Pyeongtaek have already reached their limits," adding, "We need to secure overwhelming supply capacity in advance through large-scale new investment in the Southwestern Region and other areas."
He made the remarks while chairing the "Three Major Mega Projects National Report Meeting for a Great Leap Forward in the Republic of Korea" at the Blue House Yeongbin Hall that day.
Lee said, "We must quickly complete the production bases now under way to meet the explosively growing demand for semiconductors." He added, "In particular, power and water supplies are reaching their limits. We need to finish all the sites already planned as quickly as possible, and, as will be announced today, we should move much faster than before."
He continued, "We must firmly develop new sites with abundant water, power, affordable land, and infrastructure." He also stressed that building AI data centers across the country is another important task. "When data collected on site through physical AI flows back into data centers and creates a virtuous cycle that drives industrial innovation," he said.
Samsung Electronics and SK hynix are set to announce large-scale semiconductor investment plans in Honam and other parts of the southwestern region later in the day.
Lee said the key task is a great leap forward into a world-leading industrial power with technological super-gap advantages. He added, "We must secure overwhelming competitiveness in advanced fields such as semiconductors and artificial intelligence, and ensure that the fruits of that growth are evenly shared by all people nationwide and felt by everyone. I believe today's event will be the first starting point for carrying out this weighty mission."
Lee said speed is more important than anything else, given the fierce competition in the AI sector. He noted that semiconductors, physical AI, and AI data centers form the three pillars of the country's great leap forward.
Lee said, "As everyone knows, the Republic of Korea is a great country that achieved industrialization and democratization at the same time after liberation from colonial rule. During the industrialization period, we had no choice but to pursue a policy of concentrating resources in the capital region because we lacked resources." He added, "The same was true of industrial placement centered on Yeongnam. Because we did not have enough investment resources to spread them evenly across the country, we had no choice but to select specific regions and, in today's terms, go all in on them."
He went on to say, "That was very useful for growth. But now, inefficiencies from excessive concentration have worsened, the capital region is on the verge of explosion, and the provinces are facing a crisis of near extinction. We must change this now." He emphasized, "Balanced national development has become a core survival strategy for the Republic of Korea. And there are now regions with abundant power, water, and land."
He also said, "We cannot overlook Honam in particular. Investment plans for Yeongnam, Gangwon, and Chungcheong will also be announced, but if we choose one region, Honam has in some ways become an opportunity because it has long been left out of development." He explained, "The Southwest Coast has abundant water and, especially, abundant renewable energy. That is why we must develop regions with ample power, water, and affordable land as new sites."
He said this is precisely why companies such as Samsung Electronics and SK hynix chose the region as a base for the three major mega projects.
Lee said, "From a company's perspective, it may consider the provinces from a public-interest standpoint, but in reality, growth and profit matter more. We must acknowledge that." He added, "From the state's perspective, balanced development is very important. So balancing those two is crucial."
He also said, "What the government should do is build infrastructure through support, and use tax incentives and every other possible measure so that companies can conclude that this region is far more advantageous. That is what the government should do." He added, "As some worry, this is not about forcing losses and risks on companies to push through national needs. It is about deploying the government's capabilities on a large scale so that companies can invest without losses and with better prospects."
Lee said the results of the three major mega projects will determine the next 20 to 30 years for the Republic of Korea.
He added, "The government will not shy away from any innovation needed, from revising policies and laws to designing this sweeping transformation." He said, "If I may make one special promise, I will place a dedicated official for this project inside the Blue House and personally oversee the three major mega projects so they are carried out quickly."

[email protected] Choi Jong-geun, Seong Seok-woo Reporter