Lee urges substantial expansion of industry investment beyond capital region

President Lee Jae Myung on Thursday stressed the importance of expanding investment in advanced industries in areas outside the capital region, saying he will soon unveil a related investment plan.

Lee made the remarks while presiding over a regular meeting with his top aides, as the government is reportedly drawing up a plan to foster semiconductor clusters in regional areas in line with his administration's vision for balanced regional development.

"It is essential to pursue a dramatic diversification of strategic industries by expanding large-scale investments in core advanced industries," the president said.

He cited the eastern province of Gangwon, the southern island of Jeju and the southeastern and southwestern regions as areas where such an expansion should take place, adding that the aim is to overcome the country's excessive concentration in the capital region.

Once semiconductor clusters are built, they would serve as key production hubs for major semiconductor companies, such as Samsung Electronics and SK hynix.

"While continuing to increase the sophistication of the capital region's core infrastructure, [the government] should simultaneously establish industrial foundations across regional areas […] so as to open a new era of growth for all," the president said.

"I plan to soon report a detailed blueprint on this matter to the public."

Should the country fail to overcome the development polarization, the country's latest "good changes" could fizzle out or even turn into an unimaginable crisis, the president warned.

"The effects of the phenomenal growth in some industries could further worsen disparities in terms of balanced territorial development" if they fail to trickle down to regional areas, which account for 90 percent of the territory, he said.

Lee also voiced concerns about rising food and dining prices, which he said are driven by increasing oil prices, instructing officials to mobilize all available resources to curb price burdens.

"With special alertness and a sense of crisis, all resources should be poured into stabilizing prices," the president said, ordering prompt action.

Yonhap