'Solarcido' as a Candidate for Honam Semiconductor Plant: Power, Water, and Land Pass the Test, but Talent and Living Conditions Are Key

Koo Yoon-chul, Deputy Prime Minister, Visits Solar City and Chairs 3rd Public-Private Council
Site Over Seven Times the Size of Yeouido: Half-Price Power and Abundant Water from Yeongam Lake
Aiming to Attract a Fab, but Back-End Operations More Likely... Fierce Competition with Gwangju Cheomdan 3 District

On the afternoon of June 16, the Guseong District of Haenam County, Jeonnam Province. As the hot winds signaling the start of summer swept across the vast, seemingly endless site, a grand blueprint emerged—one set to reshape the economic map of Korea's southwest. This area, known as Solar City (Solarcido), is both the starting point for the "Energy Expressway" pledged by the Lee Jaemyung administration and one of the leading candidates to host a semiconductor industrial complex in the Honam region, which has recently become a focal point for the industry. It is renowned as Korea's first and largest RE100 (100% renewable energy) complex.

The Guseong District of Solar City, where we set foot today, covers a total area of 20.9 million square meters—over seven times the size of Yeouido, or 6.32 million pyeong—making it the largest public-private urban development project site in Korea. Koo Yoon-chul, Deputy Prime Minister and Minister of Economy and Finance, visited Solar City in Haenam, Jeonnam's core growth engine, as part of an inspection of industrial sites in the 5 major super metropolitan areas and 3 special autonomous regions. He toured the data center site and solar power generation complex, and presided over the 3rd Public-Private Council for Corporate Innovation Support.

Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol visited Haenam Solarisdo, a key growth engine in Jeonnam, on the 16th as part of an inspection of industrial sites in the 5 major metropolitan areas and 3 special autonomous regions (5 super metropolitan areas - Haenam in Jeonnam and 3 special autonomous regions). At the observatory, he received an explanation from officials about the data center site and solar power generation. Ministry of Economy and Finance.

1.2 Million Pyeong Site, Power at Half Price (100 KRW per KWh), and 800,000 Tons of Water Supply: Competitive Advantages

Recently, President Lee Jaemyung, in a press conference marking his first year in office, called on major corporations to invest, pledging to bring balance to the underdeveloped Honam region. Min Hyungbae, the newly elected Mayor of the Jeonnam-Gwangju Integrated Special City, also announced that a large-scale semiconductor investment would soon be officially revealed. It is expected that an investment plan for a semiconductor plant in the Honam region will be announced as early as the end of this month.

Passing by the massive 98MW solar panels that color the reclaimed fields red, one could see firsthand the hardware advantages presented by Jeonnam Province. Solar City holds a powerful card as a site capable of hosting an advanced semiconductor cluster, which requires extensive infrastructure. Its greatest asset is that a significant portion of the land has already been prepared, making it a "large-scale site ready for immediate construction." Without the lengthy burden of land acquisition procedures, large enterprises can break ground on over 1.2 million pyeong of industrial land within a year of deciding to invest, as the land has already been secured.

In addition, Solar City's capabilities in supplying electricity and water—both essential for semiconductor plants—are unrivaled. The plan is to establish a 20GW renewable energy belt by 2035 and to deliver the generated electricity directly to nearby industrial complexes through a "local production and consumption" model. If the "Special Act on Creating Renewable Energy Self-Sufficient Cities," which is pending passage in the National Assembly, is enacted, Solar City will be able to supply RE100 electricity at a groundbreaking rate of around 100 KRW per kWh, half the rate of other regions (180–200 KRW). Water supply is also abundant, with the adjacent Yeongam Lake (reservoir capacity: 240 million tons) able to provide up to 800,000 tons per day.

Jeonnam Wants a 'Fab,' but Faces Fierce Competition with Gwangju Cheomdan 3 District for Back-End Operations

On the 16th, Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol visited Haenam Solar City, a key growth engine of Jeollanam-do, as part of a field inspection of the five major metropolitan areas and three special autonomous regions. He toured the operation center. Ministry of Economy and Finance.

However, the mood among Jeonnam Province officials on site appeared complicated. Jeonnam is eager to attract a large-scale semiconductor fabrication facility ("fab"), which could create up to 50,000 jobs, but industry expectations remain soberingly realistic. Professor Lee Jonghwan of Sangmyung University’s Department of System Semiconductor Engineering noted, "In reality, the most feasible and likely scenario for the Honam region is to attract a back-end packaging process that assembles wafers produced by front-end fabs." The packaging process has the advantage of consuming less power compared to the front-end fab.

If attracting a back-end packaging plant becomes the reality, Solar City will face fierce, uncompromising competition with Gwangju Cheomdan 3 District, another regional infrastructure powerhouse. Gwangju Cheomdan 3 District is a strong candidate for the packaging plant, with its concentration of AI-based science and technology start-ups, well-established transportation networks, and existing research ecosystem. For Solar City to win this competition, it must prove its advantages in land size and RE100 power, while proactively addressing the biggest challenge in regional areas: securing talent.

Professor Lee emphasized, "To attract outstanding human resources, not only should there be industry-academia cooperation with local universities, but also attractive residential conditions, and packaging equipment companies must move together to create a robust collaborative ecosystem." In response, Solar City has signed a Memorandum of Understanding (MOU) to attract RCS, a prestigious private school in the United States, and is pushing ahead with plans for a 10,000-unit residential complex, focusing on building a strong infrastructure for residency.

Linked with the National AI Computing Center... Building a Complete Tech Ecosystem by 2027

The government and Jeonnam Province plan to transform Solar City into an advanced tech ecosystem integrated with next-generation IT infrastructure, rather than simply a manufacturing base. Leading this initiative is the "National AI Computing Center" by the Samsung SDS consortium, which will break ground next month in July.

After signing an implementation agreement with the Ministry of Science and ICT, the center will start with an initial 40MW computing infrastructure, expanding to 100MW in the future. In addition, a large-scale "Data Center Park (DCP)" infrastructure, totaling 1GW by 2030, will be organically linked to this. Based on this high-tech infrastructure, the government has laid the foundation to complete, by 2027, a fully integrated tech ecosystem in the Honam region, tightly connecting R&D and industrial promotion functions in Gwangju with production lines in Solar City, Jeonnam.

After his on-site inspection, Deputy Prime Minister Koo stated, "Solar City is a leading hub for Korea’s new growth, pioneering future industries, renewable energy, and tourism," adding, "We will actively support the acquisition and commercialization of next-generation ultra-high-efficiency solar power technology, leveraging the region’s renewable energy infrastructure to lead the future global market."

This content was produced with the assistance of AI translation services.