Concentration of Growth Engines in Gwangju Becomes Reality
Demands for Compensation from Eastern and Mid-Western Regions Expected to Intensify
Relocation of Air Base, Nuclear Power Plant, and Water Supply Issues Pile Up
New Variables Emerge, Including Additional Nuclear Plant in Yeonggwang
Concerns Mount over Regional Conflict Without a Vision for Balanced Development That Satisfies All Areas

With the government’s decision to designate the Gwangju Air Base site as the planned location for the “Honam Semiconductor Cluster,” the controversy over the site selection has effectively reached its conclusion. However, within local political circles, there are already comments that “the real negotiations are just beginning.” Now that the establishment of the semiconductor industrial complex is confirmed, there is a strong possibility that new negotiations will arise within the integrated special city over “what will be given to other regions in exchange for Gwangju hosting the semiconductor cluster.”


On July 6, Kang Hoon-sik, Chief Presidential Secretary, officially announced the designation of the Gwangju Air Base site as the candidate location for the Honam Semiconductor Industrial Complex, effectively finalizing the government’s direction for the project. If the planned investment of 800 trillion won by Samsung Electronics and SK hynix becomes a reality, Gwangju will seize the opportunity to emerge as a core production hub for Korea’s semiconductor industry.


With the relocation of the military airport expected to lift height restrictions, secure large-scale industrial land, and foster the concentration of advanced industries, there is little debate that Gwangju will be the greatest beneficiary.

Min Hyungbae, former mayor of Gwangju Metropolitan City in Jeonnam, is announcing his stance on the decision to establish a semiconductor industrial complex in the southwestern region of Gwangju military airport site at the briefing room on the 5th floor of Gwangju City Hall on the 6th. Photo by Song Bohyun

Min Hyungbae, former mayor of Gwangju Metropolitan City in Jeonnam, is announcing his stance on the decision to establish a semiconductor industrial complex in the southwestern region of Gwangju military airport site at the briefing room on the 5th floor of Gwangju City Hall on the 6th. Photo by Song Bohyun

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The real issue lies beyond that. At stake is not just the attraction of a single factory, but a massive national project that will shape the region’s population, finances, jobs, and urban growth trajectory for decades to come. As a result, it is expected that other areas will inevitably ask, “What will our region receive?”


In fact, the ongoing debates since the launch of the integrated special city—over the main government office’s location and the distribution of administrative functions—have essentially been struggles over power and resource allocation. The semiconductor project is likely to expand this discussion on a much larger scale.


First, there is a growing possibility that the eastern region will formally demand the attraction of semiconductor materials, components, and equipment industries. Leveraging existing industrial bases such as the Yeosu National Industrial Complex, Gwangyang Steelworks, and Gwangyang Port, the argument that semiconductor-related industries—including chemical materials, advanced materials, industrial gases, and logistics—can be attracted is gaining traction.


Furthermore, there may be increased calls to establish an energy industry belt linked to the hydrogen industry, which the government is actively fostering. The idea that “Gwangju should serve as the semiconductor production base, while the eastern region is developed as a center for materials, components, equipment, and the hydrogen industry” is likely to be raised, especially among local politicians.

T-50 advanced trainer taking off from Gwangju Air Base. Provided by the Air Force 1st Fighter Wing

T-50 advanced trainer taking off from Gwangju Air Base. Provided by the Air Force 1st Fighter Wing

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After the announcement that the Eastern Government Office would be designated as the official address of the integrated special city, there has been a growing sense in the region that “we are left with just an address, but no real means for economic survival.”


An official from the local political scene commented, “With the collapse of traditional industries such as petroleum and chemicals, the local economy has fallen into complete stagnation. Although integration was achieved with difficulty, in reality, only Gwangju has benefited while the eastern region has become a bystander. To overcome this, we need a breakthrough that will fundamentally transform the situation.”


The movement in the mid-western region is also noteworthy.


The mid-western region, encompassing Muan, Mokpo, Sinan, and Haenam, is most directly affected by the relocation of the military airport. Especially if these areas bear the burden of the air base’s relocation, there is significant potential for public sentiment to emerge that “Gwangju gets the semiconductor cluster while we are left with only the sacrifices.”


In reality, although there were rosy forecasts for offshore wind power and other “energy industries” centered on Sinan and Haenam, the perception that the functions of the Jeonnam Provincial Government have weakened and that the benefits to be gained through the special city have diminished is widespread.


Recently, Kim San, Muan County Mayor of the Jeonnam Gwangju Integrated Special City, stated through the media, “I will steadfastly defend the designation of the main government office for the integrated special city as a matter of local pride.”


Regarding the relocation of the Gwangju Air Base, he said, “There can be no unilateral push without the consent of local residents,” adding, “I will ensure that the government and Gwangju fulfill their promised support and regional development projects, so that these efforts lead to tangible improvements in residents’ lives, not just slogans.”


While these remarks could be seen as typical statements, they are significant because they encapsulate all the factors that have prevented progress on the Gwangju Air Base issue thus far.


This is the fundamental background behind analyses within some local political circles that a de facto “deal” phase among the regions may be beginning.


There is growing discussion that, while Gwangju secures new growth momentum with the semiconductor industrial complex, the eastern region should be allocated industries such as materials, components, equipment, and hydrogen, and the mid-western region should receive public institutions, administrative functions, and national infrastructure projects—effectively formalizing a division of roles by region.


Especially under the integrated special city system, regional development strategies that were previously pursued separately by Gwangju City and Jeonnam Province must now be coordinated within a single framework. Therefore, there are concerns that, unless the semiconductor project leads to new, region-specific development blueprints, competition and conflict between regions could intensify.


Moreover, there are overlapping issues concerning power and water supply.


Once the semiconductor industrial complex is fully operational, stable power supply will become a priority, with discussions likely to arise around additional construction of the Yeonggwang Hanbit Nuclear Power Plant or expansion of power generation facilities. Even in this case, it would be difficult to avoid a new round of regional imbalance debates, such as “Gwangju gets the semiconductor cluster, Yeonggwang gets the nuclear power plant.”


Water supply is also expected to require adjustments among stakeholders, as it is tied to the Yeongsan River system and the use of southwestern water resources.


In the end, the designation of the Gwangju Air Base site is not the end point of the debate over the location of the semiconductor industry, but rather the starting point for new political negotiations within the integrated special city.


Up to now, the main issue was “Where should the semiconductor cluster be located?” Going forward, the central political question is likely to shift to “How should the fruits of growth generated by the semiconductor cluster be distributed?”


Depending on what kind of region-specific development strategies and balanced development blueprints Mayor Min Hyung-bae of the Jeonnam Gwangju Integrated Special City presents during this process, the semiconductor project could either become a new growth engine for the special city or the trigger for local conflict.



An official from the Jeonnam Gwangju Special City said, “The confirmation of the semiconductor cluster in Gwangju will become the litmus test for the success or failure of the hard-won integration of Jeonnam and Gwangju. There is now a sense of crisis within the region that the ‘concentration in Gwangju,’ which was the main cause of conflict during the integration process, could become a reality. Ultimately, an exit strategy is needed to realize the originally intended goal of balanced regional development, and this will be a major challenge for Mayor Min.”


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