South Korea’s semiconductor cluster plan at risk as political calls for regional relocation unsettle industrial roadmap

“Relocate to North Jeolla as a regional growth solution”
vs. “Political turbulence that ignores the industrial ecosystem”
Court ruling on approval invalidation lawsuit adds uncertainty

Debate over relocating the Yongin semiconductor cluster, a national strategic project for South Korea, has continued to intensify. Some political figures have called for a review of the site, citing power supply concerns and regional balance, but the argument has struggled to gain broad social consensus. Critics note that transportation, infrastructure, and supply-chain conditions were already examined from multiple angles during the original site selection process, warning that renewed relocation talk only heightens uncertainty for the project.

Yongin City: “The semiconductor cluster is South Korea’s future”

According to political sources on the 13th (local time), Yongin Mayor Lee Sang-il held a press briefing at Giheung ICT Valley on the 9th, where he shared a New Year address emphasizing a focus on completing a specialized semiconductor mega-city. He stated that “some regions and politicians are making unreasonable claims about relocating the semiconductor mega cluster led by Yongin,” adding that “the successful development of the semiconductor cluster is not only Yongin’s future but the future of South Korea, and we will ensure this task proceeds without disruption regardless of political headwinds.”

Calls to relocate the cluster to North Jeolla Province gained traction after Democratic Party lawmaker Ahn Ho-young, who represents Wanju, Jinan, and Muju, formally proposed to Governor Kim Kwan-young and lawmaker Lee Won-taek that they “jointly present a solution that restructures the existing semiconductor industry.” Ahn argued that North Jeolla possesses key requirements for the semiconductor industry, including renewable energy, ample water resources, and industrial land, describing the proposal as “a strategic choice to redesign the national growth path, beyond simple corporate attraction.” He also characterized it as “our answer to the Lee Jae-myung administration’s policy line of region-led growth.”

Governor Kim echoed the position, stating that “North Jeolla stands at the forefront of South Korea’s renewable energy transition,” and arguing that “a structure in which energy-producing regions bear the burden while consumption centers enjoy the benefits is no longer sustainable.” He pointed to the acceleration of renewable-energy-based industrial development within the Saemangeum National Industrial Complex since the second half of last year, saying the area offers easier power supply and sufficient renewable energy to meet RE100 requirements. The argument gained further momentum after Climate, Energy and Environment Minister Kim Sung-hwan remarked that “companies should go where electricity is produced.”

Yongin City pushed back strongly. Mayor Lee dismissed the relocation argument as “a politically motivated claim that shows no understanding of the industrial ecosystem or the substance and pace of projects underway in Yongin.” He cited investment figures and project progress, noting that 92 semiconductor materials, components, and equipment firms have already moved into or committed to the Yongin area, with planned investments totaling 2.31 billion dollars. The figures were presented to underscore that the Yongin semiconductor mega cluster is a project built on long-accumulated investment and infrastructure.

He also challenged the power shortage argument central to the North Jeolla proposal. Lee said that “even if Saemangeum were entirely covered with solar panels and energy storage systems, it would still be difficult to supply the electricity required to operate a semiconductor cluster.” Based on the average domestic solar capacity factor of 15.4 percent, securing the 15 gigawatts needed for the cluster would require more than 97 gigawatts of installed capacity. With Saemangeum’s reclaimed land covering 291 square kilometers, more than three times that area would be required to support such capacity. These calculations have reinforced criticism that relocation arguments based on power supply lack technical and practical grounding.

Renewed emphasis on distributed industrial placement

Despite this, proponents of the North Jeolla option have maintained their stance, emphasizing balanced regional development and energy decentralization. At a press conference held at the North Jeolla Provincial Assembly, Ahn argued that reviewing risks to the Yongin cluster and attracting semiconductors and advanced industries to Saemangeum are linked issues that should be pursued independently under separate rationales. He framed the debate not as a binary choice over relocation, but as a broader discussion of distributed industrial placement.

Ahn cited power and water supply capacity as reasons North Jeolla could serve as an alternative. He said plans are in place for 3 gigawatts of offshore wind and 3 gigawatts of solar power in Saemangeum, with an additional 4 gigawatts potentially secured through agrivoltaic installations and designated energy land. While acknowledging transmission challenges, he said coordination with relevant agencies could allow grid connections to be completed by 2029. For water supply, he proposed utilizing Yongdam Dam in the upper Geum River basin.

Ahn further argued that relocating or distributing parts of the semiconductor cluster could serve as a national-level solution, stating that dispersing some facilities to regional areas would allow South Korea to address regional decline and balanced development simultaneously. He also criticized the government’s southern semiconductor belt plan for excluding North Jeolla, calling for expansion into a four-pole structure linking Jeonju, Gwangju, Busan, and Gumi. The remarks amounted to a challenge to the concentration of the semiconductor industry in a single region and a call for a national redesign of industrial siting.

The presidential office responded that it had not reviewed the issue. Presidential spokesperson Kim Nam-jun said there was no specific directive from the president regarding relocation, adding that detailed decisions such as relocation would ultimately be made by companies participating in the cluster. Opposition within the Democratic Party also surfaced. Gyeonggi Governor Kim Dong-yeon said in a statement that the Yongin semiconductor cluster was “a landmark achievement secured by President Lee Jae-myung during his tenure as Gyeonggi governor by overcoming capital-region regulations to secure the nation’s future growth engines,” adding that Gyeonggi Province would continue to support power, water, and transportation infrastructure.

Gap between site changes and power solutions

Industry voices have remained skeptical of relocation discussions. Semiconductor production depends on long-term client schedules and process stability, and revisiting the location of a cluster whose site has already been finalized and construction begun is seen as a significant burden. Industry representatives warn that altering plans already determined after years of comprehensive review of power, water, transportation, and labor access would heighten uncertainty. Such changes are likely to delay timelines and raise costs, undermining trust with global customers.

Power supply challenges are also widely viewed as a nationwide issue rather than a problem unique to one region. Demand growth from the semiconductor industry affects both metropolitan and non-metropolitan areas, and meeting large-scale cluster demand solely through renewable energy in the short term is seen as unrealistic. Even in regions with strong renewable potential such as Saemangeum, issues including capacity factors, grid stability, and storage burdens must be addressed simultaneously, creating a gap between claims that relocation itself offers a power solution and on-the-ground realities.

Meanwhile, the Yongin semiconductor cluster faces an additional variable in the form of a legal ruling. Early last year, activists from the environmental group Climate Solution and five residents of the planned industrial complex area filed a lawsuit against the Ministry of Land, Infrastructure and Transport seeking to invalidate the approval of the project plan. The case centers on the adequacy of greenhouse gas emission calculations tied to large-scale power use and the feasibility of planned liquefied natural gas power generation and hydrogen co-firing. The Seoul Administrative Court is scheduled to deliver its ruling on the 15th, and a finding of procedural flaws could further disrupt the project timeline.