[2026 Parliamentary Audit] 'Honam Semiconductor' Controversy... Opposition: "Mass Deception," Ruling Party: "Essential, Not Optional"

First Parliamentary Audit of the Trade, Industry, and SMEs Committee in 2026
Kim Jungkwan: "Regions Outside Honam Were Also Considered"
Ruling and Opposition Parties Clash Over Site Selection Process

During this year’s National Assembly inspection, rival parties clashed over the process behind the site selection for the government-backed Honam Semiconductor Mega Project. The People Power Party raised suspicions that the government had essentially chosen the Gwangju military airport site in advance and simply pushed ahead procedurally, while the Democratic Party countered that a southwestern semiconductor project is necessary to prepare for expanding demand in the industry.

At the National Assembly's Trade, Industry, Energy, Small and Medium Venture Business Committee hearing on October 6, Seo Ji-young, a lawmaker from the People Power Party, questioned, “The government said it reviewed several sites and proposed them to companies, but did it ever communicate with regions apart from Gwangju and Jeonnam?” Seo further pressed for details on the existence of site review documents shared with companies and the timing of when these materials were delivered.

Kim Jungkwan, Minister of Trade, Industry and Energy, is taking the witness oath at the National Assembly's Trade, Industry, Energy, Small and Medium Venture Business Committee hearing held on the 6th. Photo by Yonhap News Agency

Kim Jungkwan, Minister of Trade, Industry and Energy, replied, “There were regions reviewed outside of the Honam area.” He went on to explain, regarding issues such as relocating the military airport, securing electricity and water supply, and wetland concerns, that “companies were aware of these conditions when choosing the Honam site.”

The People Power Party pointed out that, in order to turn the Gwangju military airport site into a semiconductor production hub, multiple preliminary challenges must be resolved, such as securing electricity and water, relocating the airport, and holding discussions with the U.S. military.

Park Sungmin, a People Power Party lawmaker, claimed, “The Honam semiconductor project is essentially a nationwide scam, with numerous elements in the process—such as procedures and site selection—at risk of halting.” He further criticized, “They decided on a site but are handling key requirements like water, electricity, and consultations with the U.S. military merely as afterthoughts to fit the preselected location.”

Minister Kim responded, “The government is providing support for the site chosen by the company,” adding, “It is my understanding that consultations with the Ministry of National Defense as well as with the United States are proceeding smoothly.”

In contrast, Jang Cheolmin, a lawmaker with the Democratic Party, argued, “Simply expanding existing semiconductor hubs in Yongin, Pyeongtaek, and Cheongju won’t be enough to handle the coming increase in memory chip demand,” emphasizing the need for the southwestern semiconductor project. Jang stated, “The southwestern semiconductor project at the Gwangju military airport site is not a matter of choice,” and added, “Even if we match construction speeds at a near-miraculous pace, it will not be easy to meet even the market’s conservative demand forecasts.”

Baek Hyeryeon, also a lawmaker of the Democratic Party, remarked, “If the semiconductor industry collapses, the Korean economy will collapse as well,” pointing out, “While countries like Taiwan, Japan, and the U.S. are making whole-of-nation efforts to support their industries, our legal and support systems started later than theirs.”

Minister Kim concluded, “Korea’s expertise in semiconductor plant construction is an issue of keen interest even among rival nations.” Regarding the submission of related materials, he added, “Please understand that some of these are sensitive.”

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