South Korea Selects Honam Region for New Semiconductor Cluster

South Korea has selected the Honam region, including Gwangju, as the candidate site for a new semiconductor industry cluster ^[1].

The decision triggers a significant economic shift, as the project involves an investment of hundreds of trillions of won ^[1]. Because semiconductor hubs drive massive regional growth and high-tech employment, the selection creates a stark divide between the winning region and those excluded from the project.

Local governments in other regions, including Daegu and Gumi city in Gyeongbuk province, said they oppose the announcement ^[1]. These regions had competed aggressively to secure the cluster, offering significant incentives to attract the industry. In Gumi, officials had offered land leases at a rate of 1,000 won per 3.3 square meters ^[1].

Critics of the decision said the selection reflects political logic rather than economic merit. They said the government is concentrating the industry within the ruling party's traditional support base in Honam while deliberately excluding other regions ^[1].

Lee Soon-ah said that people are feeling a great deal of regret because they expected the project to create good jobs and a better environment for children to work ^[1]. The disappointment stems from the belief that the economic benefits of the semiconductor boom should have been more broadly distributed across the country.

While the government has not detailed the specific criteria used for the selection, the backlash from the Gyeongbuk and Daegu areas suggests a deepening regional rift. The scale of the investment makes the site selection one of the most contentious industrial decisions in recent years ^[1].