Kim Yong-beom: "Large-Scale Semiconductor Cluster Outside Capital Region Is a Powerful National Strategy"

▲ Kim Yong-beom, Chief of Staff for Policy at the Presidential Office

Kim Yong-beom, Chief of Staff for Policy at the Presidential Office, stated that "a large-scale semiconductor fabrication facility (fab) cluster outside the capital region is a very powerful national strategy," reiterating the necessity of investing in semiconductor facilities in regions such as Honam.

On his social media today (June 28), Kim diagnosed that "semiconductors are no longer just an issue for a specific industry, but a key variable of the era that connects the economy, security, education, youth, the capital and local regions, as well as finance and real estate," adding that "borrowing the language of 1980s social science, artificial intelligence (AI) and semiconductors are the infrastructure of today."

Noting that questions regarding production, liquidity, and the youth are being raised amid the current semiconductor boom, he wrote, "We must increase production while channeling excess liquidity into productive areas and creating new opportunities for the youth."

Kim argued, "A conventional approach is difficult. A special national-level strategy is required," asserting that fabs must be built more boldly, excess liquidity should be directed away from apartments in the capital region, and programs at a 'New Deal' level should be provided to the youth.

Regarding the fab cluster outside the capital region, he emphasized, "This is not a policy for balanced regional development," but rather "a national strategy that simultaneously solves three tasks: industrial policy, macroeconomic policy, and social policy."

Kim also pointed out, "Past ideologies and political frames cannot explain what is happening before us," adding, "Yet our public discourse is still stuck in the past. Ideological debates, value debates, and endless political wrangling."

He further added, "If we are held back by consuming debates and endless procedures, we may miss a once-in-a-lifetime opportunity," and that "value debates do not make life prosperous. Solving the people's livelihood issues is the reason for the existence of politics and policy."

With Samsung Electronics and SK Hynix expected to announce large-scale semiconductor facility investments in the Honam region this week, Kim's remarks appear to dismiss opposition claims that the large-scale Honam investment is driven by political considerations and pressure as 'ideological debates' and 'political wrangling,' while emphasizing the need to view the matter from a broader national strategic perspective.

Yesterday (June 27), Kim also emphasized on social media that "the production capacity required by the AI era cannot be handled by a single cluster alone, and new production hubs must be prepared in advance," adding that "the production capacity of a fab is king."

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