Semiconductor Cluster Accelerates... Gwangju Military Airport Land Transaction Permission Zone Designation Imminent

Government Expected to Announce Designation Decision This Week
Final Coordination Underway on Blocking Speculation and Protecting Property Rights

The designation of the land transaction permission zone surrounding Gwangju Military Airport, where the Honam Semiconductor Cluster is being promoted, is expected to take shape within this week. The government and the Gwangju-Jeonnam Integrated Special City are in the final stages of discussion on measures to block speculative demand while minimizing infringement on property rights.

At an executive meeting held on July 8, presided over by Min Hyungbae, Mayor of the Gwangju-Jeonnam Integrated Special City, Park Geumhwa, Director of Urban Space, stated that meetings had been held with the Ministry of Land, Infrastructure and Transport, and that a government announcement is expected within this week.

On the 7th, a passenger plane took off from Gwangju Military Airport in Gwangsan-gu, Gwangju, Jeonnam. The government has selected Gwangju Military Airport as the site for the Honam semiconductor cluster. Photo by Yonhap News.

Mayor Min asked whether there had been sufficient discussion on how to prevent speculation without hindering property rights, and Director Park replied that working-level consultations were underway with the Ministry of Land, Infrastructure and Transport and Korea Land & Housing Corporation (LH), and that they were preparing measures to guarantee property rights as much as possible while also preventing speculation.

The land transaction permission system designates areas with speculation concerns as permission zones, requiring approval from the relevant administrative authority for transactions involving land exceeding a certain size. Transactions for speculative purposes, rather than genuine demand, are effectively restricted. For areas spanning more than one city, county, or district, the Minister of Land, Infrastructure and Transport is responsible for designation, while for specific areas within a single city, county, or district, the mayor or provincial governor designates the zone.

The government's consideration of designating a land transaction permission zone is interpreted as a preemptive measure to block speculative demand in the surrounding real estate market as the Honam Semiconductor Cluster project becomes more concrete.

Previously, on June 29, the government announced plans to create the Honam Semiconductor Cluster, including an investment plan worth 800 trillion won by Samsung Electronics and SK hynix, at the 'Three Major Mega Projects National Briefing.' Subsequently, at the public-private joint review meeting held on July 6, the Gwangju Military Airport site was confirmed as the location for the cluster.

After the government announcement, it was reported that inquiries from potential buyers have increased, particularly at real estate agencies near the Gwangju high-tech district. However, according to Korea Real Estate Board data, as of June 29, apartment sales prices in Gwangju had fallen by 1.57% compared to the beginning of the year.

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