Budget Committee Clash Over 'Honam Semiconductor'; Industry Minister: 'Fab Placement to Be Finalized This Month'

At a plenary session of the National Assembly’s Special Committee on Budget and Accounts held on the 10th, the ruling and opposition parties clashed over the “Honam Semiconductor Cluster” project, with one side warning of “delays” and the other criticizing it as “a rushed effort.” Meanwhile, the Minister of Trade, Industry and Energy said that decisions on where companies will locate their semiconductor fabrication plants (fabs) are expected to be finalized this month.

The plenary session of the Special Committee on Budget and Accounts is underway at the National Assembly on the 10th. 2026.11.10 Photo by Yoon Dongju

Minister of Trade, Industry and Energy Kim Jung-kwan attended the committee’s plenary session at the National Assembly that day. Responding to a question from Democratic Party of Korea lawmaker Jo In-cheol about the project schedule, he said, “Overall, things have moved very quickly,” adding, “It is important how companies decide where to locate their fabs, and those details are expected to be finalized by the end of this month.”

Lawmaker Jo conveyed concerns to Minister Kim that the Honam Semiconductor Cluster project might be delayed. “Since the preliminary project operators were selected last July, there has been no visible progress,” Jo said. “I am concerned about whether mass production can begin in 2030 as planned and whether the project might be halted.”

In response to these concerns, Minister Kim said, “Various matters, including fab locations, are being worked out behind the scenes.” He added, “Visible progress could include relocating the military air base and decisions on where things will be located. I expect the overall picture to emerge by the end of this year or around 2027.”

The opposition, however, criticized the project as being rushed. People Power Party lawmaker Lee Jong-wook said, “From what I could find, the total project cost is as much as 94 trillion won. The problem is that most of the projects were exempted from preliminary feasibility studies.”

Minister of Planning and Budget Park Hong-geun countered that the project cost cited by Lee “seems exaggerated,” adding, “Some projects are nationwide or intended for the entire population, while others are difficult to specify.”

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