Honam Semiconductor Power: 3GW to Be Supplied by 2029 First... Samsung, SK, and KEPCO Sign Agreement

Ministry, Jeonnam-Gwangju Integrated Metropolitan City, KEPCO, and Corporations Participate
Power Supply Agreement Ceremony for Honam and Yongin Semiconductor Mega Projects
New Transmission Line to Connect Shinjangseong-Singwangju to Honam Semicondu

On the 12th, representatives of participating organizations pose for a commemorative photo after signing the agreement at the power supply agreement ceremony for the Honam Region and Yongin Semiconductor Industrial Complex held at the KEPCO Gyeongin Construction Headquarters in Jung-gu, Seoul. From the left: Yong-Kwan Kim, President of Management Strategy at Samsung Electronics DS Division; Hyung-Bae Min, Special Mayor of Gwangju and Jeonnam; Sung-Hwan Kim, Minister of the Ministry of Climate, Energy and Environment; Dong-Chul Kim, President of Korea Electric Power Corporation; Sung-Jin Yeom, President of Communications at SK hynix. Ministry of Climate, Energy and Environment. Photo by The Asia Business Daily

The government has announced plans to supply 3 gigawatts (GW) of electricity to the Honam semiconductor industrial complex—one of the three major mega-projects—by 2029 as the first phase. For the Yongin National Industrial Complex, led by Samsung Electronics, the approach is to respond to initial demand by building three 1GW liquefied natural gas (LNG) power plants by 2032.

On August 12, the Ministry of Climate, Energy and Environment stated that it held the "Honam and Yongin Semiconductor Mega Project Power Supply Agreement Ceremony" at the Korea Electric Power Corporation (KEPCO) Gyeongin Construction Headquarters, Jung-gu, Seoul to this effect.

The agreement ceremony was attended by the Ministry of Climate, Energy and Environment, Jeonnam Gwangju Special Integrated City, Samsung Electronics, SK hynix, and KEPCO. Three agreements were signed: one for power supply to the Honam semiconductor industrial complex and two for power supply to the Yongin national and general industrial complexes. The Ministry explained, "Under the agreement, each participating institution will maximize its respective capabilities to ensure timely power supply. In particular, Jeonnam Gwangju Special Integrated City, which signed the Honam-region agreement, has pledged to actively cooperate so that permits and approvals for constructing power supply facilities can proceed quickly."

The Honam semiconductor complex, where total power demand is expected to exceed 6GW, aims to have approximately 3GW of initial power supply facilities installed in advance so that fabs can begin running from 2029. Following this, cumulative power supply is to be expanded to more than 6GW by constructing additional facilities in Phase 2.

In the first phase, the power transmission line for the Honam complex will branch from the Sinjangseong-Singwangju line to directly connect to the complex. The Phase 2 route will be detailed through technical reviews and consultations with companies and related institutions. One substation will be built inside the complex during Phase 1, with an additional substation to be constructed in Phase 2.

Eunseop Kwak, Head of the System Planning Division at Korea Electric Power Corporation, is explaining the power supply plan at the 'Honam Region and Yongin Semiconductor Megaproject Power Supply Agreement Ceremony' held on the 12th. Photo by Heejong Kang

The cost of phase 1 power supply facilities will be shared between the public and private sectors, proportional to their usage. For a portion of the shared costs, the government plans to seek state funding in accordance with the 'Special Act on Semiconductors,' which came into effect on August 11, following inter-ministerial consultations.

On the same day, Samsung Electronics, SK hynix, and KEPCO each signed strategic supply agreements for the Yongin national and general industrial complexes. On June 29, the government unveiled a goal as part of the "Korea Leap Forward: Three Mega Projects" to move up the completion of the final fabs at Yongin complexes, with the aim of doubling memory production capacity within five years.

As a result, SK hynix revised portions of its November 2024 power supply agreement for the Yongin general complex, and Samsung Electronics signed a new phase 2 power supply agreement for the Yongin National Industrial Complex.

The Yongin semiconductor cluster, led by Samsung Electronics and SK hynix, is projected to generate power demand totaling over 14GW by 2041, beginning with initial power supply to the Yongin general complex in July 2026.

For the Samsung Electronics-led Yongin National Industrial Complex, power will be supplied in stages for a total of six fabs through 2041. In phase 1, the company plans to build three 1GW LNG power plants near the complex and connect short-distance transmission lines by 2032 to meet initial demand. These three LNG plants are intended to replace aging coal-fired plants.

In phase 2, additional demand will be met by increasing the capacity of existing transmission lines by 2035. Ultimately, new transmission lines connecting to the East Coast and Central regions will be constructed, with details finalized through additional technical reviews and stakeholder consultations.

For the Yongin general complex led by SK hynix, initial power will be supplied via a transmission line connecting the new Ansung substation—completed in July 2026—to the Dongyongin substation as phase 1. In phase 2, supplementary lines near the complex and the East Coast supply route are scheduled for early completion in 2031 and 2032, respectively.

A passenger plane is taking off from Gwangju Military Airport in Gwangsan District, Gwangju, Jeonnam, seven days ago. The government has selected Gwangju Military Airport as the site for the Honam semiconductor cluster. Yonhap News Agency

Sunghwan Kim, Minister of the Ministry of Climate, Energy and Environment, emphasized, "The core factor that will determine the success of the semiconductor mega-projects is prompt power supply. The government, companies, and localities must act as one team to radically shorten administrative procedures, and we will make every effort to ensure timely power supply in line with the construction of new complexes."

Hyungbae Min, Special Integrated Mayor of Jeonnam Gwangju, stated, "The Special Integrated City will accelerate the administrative process for building the power grid and ensure that essential infrastructure is prepared in sync with corporate investment schedules. Public and private sectors, working as one, will open a new chapter for the Korean semiconductor industry in Jeonnam Gwangju."

Dongchul Kim, President of Korea Electric Power Corporation, remarked, "As the corporation responsible for the nation's power infrastructure, KEPCO will fully mobilize its capabilities to supply timely electricity that meets increasing corporate demand. With today's agreement, we are committed to actively strengthening the global competitiveness of Korea's semiconductor industry."

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