The South Korean government has been instructed to establish a ₩5 trillion semiconductor fund and build a semiconductor cluster in the Honam region by transferring the military functions of Gwangju Military Airport. It also plans to accelerate the development of related infrastructure.
The South Korean government announced that it would establish a new semiconductor fund worth ₩5 trillion. The fund will focus on investing in semiconductor materials and components companies and fabless companies, with the aim of strengthening weaknesses in the supply chain.
President Lee Jae-myung (李在明) chaired the second public-private review meeting on large-scale projects and instructed the Ministry of National Defense to transfer the military functions of Gwangju Military Airport to other bases and secure a site for the Honam semiconductor cluster. The meeting emphasized pursuing both speed and rapid execution.
In addition to the semiconductor fund, the government said it would provide ₩5 trillion in trade finance to support the development of export-oriented suppliers, bringing total financial support to ₩10 trillion. It will also promote legislation to expedite permits and approvals for industrial parks and environmental assessments.
The Honam semiconductor project, estimated at ₩800 trillion around Gwangju Military Airport, is positioned as an important pillar that will serve as a second semiconductor production hub. The government said it would benchmark Japan's Kumamoto model and shorten the preparation period by processing procedures concurrently.