Jeonnam Gwangju to Seek Designation of Southwest Semiconductor Cluster at Military Airport Site Within This Year

Non-Capital Regions to Be Prioritized in Government Decree
Application and Development Plans Underway; Master Plan in Progress
Securing Electricity and Water Supply, and Selecting Project Operator

The project to establish the Southwest Semiconductor Cluster on the site of the Gwangju Military Airport is gaining momentum. As the government has stipulated in the enforcement decree that non-capital regions must be prioritized when designating a semiconductor cluster, the Integrated Metropolitan City of Jeonnam Gwangju has begun preparations to submit its application, aiming for designation within this year.

On the 5th, the Integrated Metropolitan City of Jeonnam Gwangju held a meeting at the Gwangju government building, presided over by Mayor Min Hyungbae, to review the requirements and progress related to the semiconductor cluster designation for the Gwangju Military Airport site.

The previous day, the government approved the draft for the “Enforcement Decree on the Special Act on Strengthening Competitiveness and Support of the Semiconductor Industry” at a Cabinet meeting. The enforcement decree, which goes into effect on August 11, sets the demand for company relocation, infrastructure, and funding availability, as well as contributions to balanced regional development, as key criteria for cluster designation. It also includes provisions that non-capital areas should be given priority consideration.

Min Hyungbae, Mayor of Jeonnam Gwangju Integration Special City, is presiding over the "Semiconductor Cluster Designation Response Status Inspection Meeting" at the mayor's office in the Gwangju government building on the 5th. Provided by Jeonnam Gwangju Integration Special City

The cluster can be designated either directly by the Ministry of Trade, Industry and Energy or upon application by a local government. Once designated, between 50% and up to 100% of the costs for building industrial infrastructure such as electricity, water supply, wastewater treatment, and roads will be covered by national funds. Tenant companies will also receive tax breaks and financial support.

The Gwangju Metropolitan City is preparing the application and development plan for the designation, focusing on the Gwangju Military Airport site, which is the candidate site for the Southwest Semiconductor National Industrial Complex. With its official launch on July 1, the city enacted the “Global Semiconductor Strategic Investment Support Ordinance” as its inaugural ordinance, established the Semiconductor Strategy Committee and Semiconductor Industry Support Team, and on July 23 commissioned the drafting of a master plan for the cluster, which will include measures for securing power and water resources and fostering talent.

The Ministry of Trade, Industry and Energy has previously announced its plan to both select project operators and designate the cluster within this year, targeting commencement of construction and production within its term for the Southwest Semiconductor Cluster.

Special Mayor Min Hyungbae stated, “We will develop specific plans for the site, investment conditions, strategies for stable electricity and water supply, and talent cultivation, in order to secure the designation of the semiconductor cluster.”

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