Gwangju Metropolitan City Welcomes Approval of Exemption from Feasibility Study for Honam Semiconductor Water Supply Project

[Financial News, Jeonnam-Gwangju = Hwang Tae-jong] Jeonnam-Gwangju Integrated Metropolitan City, or Gwangju Metropolitan City, strongly welcomed the State Council of South Korea's decision on the 25th to exempt the water supply project, a core infrastructure project for the Honam region advanced national semiconductor industrial complex, from the Preliminary Feasibility Study and to approve integrated fiscal support worth 6 trillion won.
Gwangju Metropolitan City said the exemption from the feasibility study and the approval of integrated fiscal support reflect the government's firm commitment to developing the semiconductor national industrial complex in the Honam region into a new advanced industry hub for South Korea. It also expressed gratitude and support for the decision.
It added that, starting with the water supply project, it expects the remaining key infrastructure needed for fab operations, including power and land, to be secured without disruption through follow-up government measures. The city said it will work closely with the government, companies, and related agencies to move the next steps forward quickly.
Gwangju Metropolitan City also said the latest decision shows the government's strong determination to nurture the Honam region semiconductor national industrial complex into a new advanced industry base for South Korea.
According to the city, the exemption from the feasibility study will allow the water supply project, which is essential for four semiconductor fabs and partner companies to be built around the former Gwangju military airport site of about 8.26 million square meters, to move into full-scale implementation. The project will provide 650,000 tons of water per day.
Gwangju Metropolitan City expects that, beginning with the water supply project, follow-up projects for the 6.3 GW of power and land needed to operate the fabs will also be exempted from feasibility studies once detailed government plans are prepared.
The city said the integrated fiscal support plan approved for the semiconductor cluster in the southwest region will secure a total of 6 trillion won, or 1.5 trillion won a year for four years, as contributions to the semiconductor special account. This will allow more flexible and faster support tailored to local conditions and business needs, while also helping build the industrial ecosystem.
Because stable land, power, and water supplies are essential for the semiconductor industry, the city plans to establish a "one-team system" that brings together land, power, water, and business support. It aims to provide infrastructure on time in line with corporate investment and fab construction schedules.
Mayor Min Hyung-bae of Jeonnam-Gwangju Integrated Metropolitan City said, "This decision to exempt the project from the feasibility study and approve integrated fiscal support reflects the government's resolve to develop the Honam region semiconductor national industrial complex into a new hub of South Korea's advanced industries." He added, "We will accelerate the key infrastructure, including water supply, and use the integrated fiscal support funds to provide swift and bold assistance that companies can actually feel."
He also said, "We will work closely with the government and related agencies to quickly finalize plans for power and land projects," and added, "We will make sure the goal of starting first semiconductor mass production in June 2030 is achieved without setbacks."
[email protected] Hwang Tae-jong Reporter