Kim Jung-gwan: "800 Trillion Won Semiconductor Investment Equals 5 Years of Total Production in Jeonnam and Gwangju"

The government is set to provide infrastructure support and deregulation to back corporate investments in the southwest region, which amount to 800 trillion won in the semiconductor sector alone.

Minister of Trade, Industry and Energy Kim Jung-gwan stated today (the 30th) at the National Report on the Development Vision for Advanced Industries in the Southwest Region, held at the Kim Dae-jung Convention Center in Gwangju, "The 800 trillion won semiconductor investment in the southwest region is equivalent to the total production of the Jeonnam and Gwangju areas over five years (an annual GRDP of 160 trillion won)," adding, "This is at a level that will redraw the economic map of this region."

Minister Kim added, "This 800 trillion won investment will create 1.6 million jobs," and noted, "A large portion of these will be generated here (in the southwest region)."

"Now that companies have made the decision to invest, it is time for the central and local governments to respond to that call," he said, promising government support.

The Ministry of Trade, Industry and Energy plans to establish a Semiconductor Innovation Support Team and work with the presidential Semiconductor Special Committee to push forward infrastructure support and deregulation without setbacks.

Minister Kim stated, "We are pushing for the enactment of a 'Mega Special Zone Act' to create an attractive investment environment," and added, "Once the law is enacted, we will designate at least one mega special zone here to resolve various difficulties faced by companies."

He emphasized that the central and local governments will cooperate to take 100% responsibility for infrastructure such as power and water, which are essential for operating semiconductor factories.

Furthermore, he introduced plans to introduce a 'region-specific differential tax system,' a key initiative being pushed by Deputy Prime Minister and Minister of Finance and Economy Koo Yoon-cheol, to ensure that workers and investing companies in the region can enjoy greater tax benefits.

In addition to institutional support, Minister Kim also called for close cooperation from local governments.

Minister Kim said, "Corporate investment is difficult to succeed with the central government alone," and added, "Attracting companies is a competition that takes place on the global stage, and we need incentives that allow competitive companies to decide and execute investments domestically and locally."

Along with this, he urged for close support to ensure companies can invest on time and properly, as well as improvements in living conditions to secure top talent.

Minister Kim requested, "Please pour all the administrative capabilities of the Jeonnam-Gwangju Integrated Metropolitan City, which will be newly launched tomorrow, into this effort."

He promised, "The government will not stop until the promises of these companies become reality and the new heart of South Korea's industry beats vigorously."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.