"Legal Basis Needed to Secure Water for Honam Semiconductor Cluster... Interregional Disputes Also Must Be Resolved"

NARS Reviews Feasibility of Supplying Water to the Honam Semiconductor Cluster
Legal Grounds Needed to Repurpose Boseong River Dam's Power Generation Water
Water Management Pact Needed to Prevent Interregional Disputes

The National Assembly Research Service (NARS) has recommended that new legal grounds must be established for the use of Boseong River Dam's water—originally designated for power generation—for other purposes, in order to supply 650,000 tons of water per day to the Honam Semiconductor Cluster, a core project among the three major mega projects. NARS also pointed out the importance of resolving the "water conflict" between the Yeongsan River basin and Seomjin River basin regions.

On the 19th, legislative researcher Kim Jinsu from NARS noted, "According to the Rural Community Improvement Act, agricultural water can be used for industrial or domestic purposes, but there is no legal basis for repurposing water for power generation," and added, "If water for power generation is supplied to the Honam Semiconductor Cluster without passing an enabling law, it could create problems."

Previously, NARS released a report titled, "Feasibility Assessment for Water Supply to the Honam Semiconductor Cluster," covering these issues. Researcher Kim commented, "As with the Yongin Semiconductor Cluster being developed in the Seoul Metropolitan Area, the feasibility and supply of essential resources such as electricity and water remain a subject of continuous debate for the Honam Semiconductor Cluster. In particular, the Ministry of Climate, Energy and Environment, responsible for water supply, has only announced broad plans, without providing specific solutions to the problems raised by the media and academia."

The Honam Semiconductor Cluster, as a key project of the three major mega projects, aims to construct four semiconductor fabrication (Fab) facilities and create a "second semiconductor production base" in Gwangju, bringing together partner companies, research institutes, and a specialized semiconductor workforce. On July 29, the government designated the site of the Gwangju Air Base as a candidate for the "Honam High-Tech National Industrial Complex for Semiconductors." On August 25 and September 1, it exempted preliminary feasibility studies for establishing water and power infrastructure, thereby accelerating the project's progress.

It is estimated that operating the planned Honam Semiconductor Cluster will require 650,000 tons of industrial water daily. The government plans to secure and supply this water for semiconductor manufacturing using both water from dams and recycled wastewater.

◆ Need to Provide Legal Basis for 'Repurposing Power Generation Water as Industrial Water' = In addition to multipurpose and water-supply-dedicated dams intended to provide domestic and industrial water to the Honam region, the government intends to supply 100,000 tons of power generation water daily from Boseong River Dam (a power generation dam) and 100,000 tons of agricultural water daily from Naju Dam (an agricultural reservoir) as industrial water.

The issue arises because the "stored water" in the dam, which has not yet been released downstream after power generation, was initially approved solely for power generation purposes under the river water use permit, and therefore cannot legally be used for any other purpose. Supplying 100,000 tons of industrial water daily from the Boseong River Dam without an appropriate legal basis may continuously trigger controversy.

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Researcher Kim stated, "According to current law, only agricultural water is eligible for 'use for purposes other than originally permitted.' Therefore, unlike the agricultural water from Naju Dam, repurposing power generation water from Boseong River Dam for industrial use would require the relevant laws to explicitly allow flexibility for power generation water." He added, "Supplying water from a power generation dam would, like a multipurpose dam, require a certain amount to be released regularly. While multipurpose dams charge a fee for water supplied, there is currently no legal support for power generation dams to do the same, leaving them unable to collect fees for supplied water." He suggested, "As an alternative to new dams, to enable multipurpose use of power generation dams, regulations covering the repurposing of power generation water and the charging of usage fees are needed."

◆ Need to Prevent Water Disputes in Advance = The Gwangju area, where the Honam Semiconductor Cluster will be located, falls within the Yeongsan River basin. However, most of the water needed for semiconductor production will come from the Seomjin River basin.

The report pointed out that while some economic benefits from building the Honam Semiconductor Cluster will accrue to the Seomjin River basin, most advantages go to Gwangju, which receives water supplied from different regions, increasing the risk of interregional conflict over water distribution.

Researcher Kim commented, "Back in September 2013, the Seomjin River Environmental Administration Council, comprising 11 local governments within the basin, presented the 'Seomjin River Declaration' in the National Assembly, calling for measures such as securing adequate river water and revising distribution plans. These disputes over water allocation have existed long before." He further emphasized, "It is essential to establish a social consensus through inclusive consultations among all stakeholders on water use in the Honam region, and based on that outcome, to sign a water management agreement, proactively preventing disputes and ensuring stable water supply through effective measures."

◆ Need to Adjust Permit Volumes to Improve River Water Utilization Rates = Water for the Honam region is currently supplied from the Yeongsan, Seomjin, and Tamjin river basins, but most river water is already in use, leaving little surplus. As a result, water to operate the Honam Semiconductor Cluster will inevitably have to be secured and supplied from dams.

According to the report, as of 2025, the river water utilization rates for the Yeongsan, Seomjin, and Tamjin Rivers are 36.2%, 58.4%, and 41.3% respectively, with the overall average standing at just 44.7%. Researcher Kim pointed out, "Less than half of the permitted river water is actually used, so users holding excessive permits should have them adjusted to reflect real usage in order to strengthen water security." He also recommended, "Non-structural measures, such as saving river water that would otherwise go to waste and thus reducing the burden on dam water supply, should be implemented first to make the most of limited water resources."

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