Gwangju military airport site selected for Honam chip cluster

The presidential office has decided to build the southwestern semiconductor cluster on the site of a military airport in Gwangju.

Four semiconductor facilities will be constructed on the airport site by Samsung Electronics and SK hynix at a cost of 800 trillion won ($522 billion).

The relocation of the military airport remains an issue, which would also determine the timing of the cluster's completion. President Lee Jae Myung stressed on Monday that "speed is everything" and highlighted the need to move the so-called megaproject forward as quickly as possible.

Lee chaired a public-private inspection meeting on megaprojects at the presidential office on Monday, attended by Cabinet members, including Planning and Budget Minister Park Hong-keun, as well as SK hynix CEO Kwak Noh-jung and Samsung Electronics President Kim Yong-kwan.

"At today's meeting, we decided to create the Honam semiconductor industrial complex on the Gwangju military airport site," said Presidential Chief of Staff Kang Hoon-sik. Honam refers to the greater Jeolla region in southwestern Korea that encompasses Gwangju, North Jeolla and South Jeolla.

"The government will quickly complete the site selection process through consultations with relevant ministries and begin follow-up procedures for the development of the industrial complex," Kang said. "The companies concluded the Gwangju military airport was the most suitable site among the candidate locations in the Honam region."

According to the Blue House, the site received high marks because it covers about 8.2 square kilometers (3.2 square miles), enough space for four fabs; the land has already been leveled due to its use as an airport and thereby shortening site preparation time; it is close to downtown Gwangju and the Gwangju Songjeong KTX station, which makes it it attractive for workers and residents; and it has strong logistics access through roads, airports and ports.

Another advantage is that the land is government-owned, which would simplify the compensation procedures. Samsung Electronics also previously evaluated the military airport site when Gwangju sought to attract a semiconductor plant.

Plans to create the Honam semiconductor cluster were announced last Monday as one of three megaprojects for Korea. The government confirmed the site just one week later.

"There were many reports that real estate prices in Gwangju were beginning to surge," Kang said. "We believed that quickly finalizing the site would prevent unnecessary controversy from growing."

The key obstacle to accelerating the project would be the relocation of the military airport. Moving the Gwangju military airport, located near the city center, out of the city has been under discussion since 2007, though the actual transfer has proven elusive.

After the Lee administration took office, Muan in South Jeolla was selected as the relocation site. Progress has been slow, however, because of opposition from Muan County and local residents, who demand that Gwangju's civilian airport be relocated to Muan International Airport first; that 1 trillion won in support be provided by the integrated Jeonnam-Gwangju Special Metropolitan City and the government; and that major incentives be offered at the national level.

"We will examine various ways to vacate the Gwangju military airport," Kang said. "The premise is that the relocation will take place as early as possible without creating a gap in national security."

He did not disclose a specific timetable or method for the relocation.

Kang said last week that the goal is to complete the Honam semiconductor cluster "within the Lee administration's term," which ends in June 2030. Given that building a fab alone takes about two years, major issues would have to be resolved within that period.

"We cannot simply wait indefinitely," said a senior Blue House official. "The government has to find a way."

One factor that could accelerate the relocation is the integration of Gwangju and South Jeolla, which took effect this month.

Of the 8.2 square kilometers, about 2.1 square kilometers, including land for relocating an ammunition depot but excluding the military airport site, can be used immediately. Officials are discussing building one or two fabs there first. The site also includes the civilian airport, which could be relocated to Muan International Airport sooner than the military airport, making that land available before the military relocation is completed.

Lee repeatedly emphasized speed.

"A full-scale competition that will determine the nation's future is underway in advanced industries, and in this environment, the outcome depends on who moves faster," Lee said at the meeting. "I want to stress again that speed is everything."

On June 29, the government and companies unveiled three megaprojects involving large-scale regional investments in semiconductors, physical AI and AI data centers.

"The government must remove every foreseeable obstacle in advance so that companies can focus solely on investment and operations," Lee said. "Investment and implementation must never be delayed because of administrative procedures."

"If compensation is delayed, the entire process will take longer, so we must prevent that from happening. Environmental impact assessments are necessary, but if one has already been conducted for the same area, there is no need to repeat it. It is important to rely on the existing results," he added.

On land acquisition, Lee instructed officials to begin negotiated purchases and compulsory acquisition procedures simultaneously.

"In the case of the Yongin general industrial complex, people say it moved quickly, but it still took six years from site selection to groundbreaking," Lee said. "By my standards, that is not fast. I hope all procedures can proceed in parallel as long as they remain within the law."

"If regulations stand in the way, they should be changed through legislation," Lee added.

Lee also instructed the Ministry of Climate, Energy and Environment to address concerns about the baseload power required to operate the fabs around the clock.

"Companies are concerned that while the Honam region has abundant renewable energy, baseload power could become an issue," Lee said. "I hope those concerns can also be resolved in advance."

Some within the ruling party have suggested that additional nuclear power plants may ultimately be needed to support the southwestern semiconductor cluster. Ha Joon-kyung, senior presidential secretary for economic growth, also indicated that while renewable energy would continue to expand, nuclear power could still be necessary to meet demand not covered by renewables.

Meanwhile, the presidential office also said it would accelerate land compensation and the supply of electricity and water for the 10 fabs planned for the Yongin semiconductor cluster. Public-private inspection meetings chaired by the president will be held monthly, and a dedicated organization to oversee the megaprojects will be established soon.

"We agreed that a senior official with sufficient authority will be appointed to oversee progress on each project and coordinate differences among ministries," Kang said.

BY OH HYUN-SEOK, YOON SUNG-MIN [[email protected]]