SCBA clashes over ‘Honam semiconductor’: ruling party says ‘a matter of fate,’ opposition calls it ‘a hasty, ill-considered push’

[Financial News] The ruling and opposition parties clashed over the creation of the Honam Semiconductor Cluster, a flagship project of the Lee Jae Myung administration. The Democratic Party of Korea stressed that it must be pursued swiftly to strengthen the competitiveness of the semiconductor industry, while the People Power Party criticized the government for hastily pushing ahead with a large-scale project requiring massive public spending. The opposition says rigorous scrutiny, including a preliminary feasibility study, is needed given that the cost of the project funded by the national treasury amounts to 100 trillion won.
The National Assembly’s Special Committee on Budget and Accounts held a plenary meeting on the 10th and conducted ministry-by-ministry reviews of the economic ministries. On the same day, Minister of Trade and Industry Kim Jeong-gwan said a plan for the placement of semiconductor fabs would be finalized this month. The plan is also to promptly review and finalize the relocation plan for Gwangju’s military airport.
Lee Jong-uk of the People Power Party took issue with the fact that a project involving 94 trillion won in spending was proceeding without a preliminary feasibility study. “Can’t you see the stock market in turmoil? What are you relying on to go all in, staking South Korea’s future?” he asked. He also criticized the government, saying, “The preliminary feasibility study system seems to have been almost hollowed out, especially under this administration.”
He also pointed out that the government was racing ahead without sufficiently assessing the project’s viability. Lee said, “They say they’re going ahead without even examining how to provide infrastructure such as power and water networks, how to provide financial and administrative support, or whether the funding can be secured.” He asked, “While the investment project in the U.S. is scrutinized for commercial viability, aren’t domestic projects being reviewed?” In response, Minister of Planning and Budget Park Hong-keun said, “The figure seems exaggerated,” explaining, “Many projects cover the entire country, some are difficult to specify, and some are aimed at all citizens.”
The Democratic Party’s position is that investment should be made swiftly to widen the semiconductor technology gap. Democratic Party lawmaker Jo In-cheol said, “The site selection was announced last June, and in July the candidate sites for the industrial complex were designated and preliminary project operators selected, but there has been no visible progress since then.” He added, “We’re concerned about whether mass production can begin in 2030 as planned and whether the project might be halted.”
Lee Gwang-jae, the Democratic Party’s SCBA chair, also said, “The Yongin semiconductor project should have moved much faster.” He added, “This issue in particular is not a matter of the ruling and opposition parties; it is a matter of fate, and I hope we can pool our wisdom.” Minister Kim also said, “It’s not that we’re rushing; I feel that things are being delayed even further, which makes me anxious,” adding, “Companies do want to move forward even a day sooner.”
[email protected] Lee Hae-ram Reporter