President Lee Jae-myung Says "Regional Discrimination? A Drop in the Bucket Compared to Cumulative Investment"

The newly announced investment scale is 1,558 trillion won. When combined with previously ongoing projects, it reaches 4,755 trillion won. As predicted by the Blue House Chief of Staff for Policy, highly 'unfamiliar numbers' were presented, and an 'unfamiliar scene' also emerged where the president bowed 90 degrees to the heads of major conglomerates.
The 'Three Mega Projects for Korea's Great Leap Forward' was announced by the president with the chairmen of Samsung and SK on either side. It is an industrial development plan aimed at taking the lead in the AI era to create a 'super-gap,' as well as a national balanced development plan to break away from the unipolar system centered on the Seoul metropolitan area. Controversies can arise from both of these aspects. First, there is controversy over whether the government twisted the arms of companies to force them to release investment plans they did not want. Yesterday, Presidential Chief of Staff Kang Hoon-sik responded, "Samsung Electronics started its semiconductor business in 1985, and its total profit from semiconductors over the 40 years until 2025 was 295 trillion won, but its (expected) profit for this year alone is 350 trillion won." This is a rebuttal that such criticism is made without realizing how much the world has changed. Given that the two companies could have built factories abroad in search of better locations rather than domestically, it is difficult to find fault with the domestic investment plan itself. Ultimately, the controversy yesterday and today is focused on the fact that more investment is being directed toward the Honam region. Looking at the newly disclosed investment scale by region, the Honam region receives 896 trillion won, the Chungcheong region 392 trillion won, and the Yeongnam region 270 trillion won. Beyond the sheer scale of the investment, controversy continues over the plan to build four semiconductor fabrication plants (fabs) for front-end memory semiconductor production in the Honam region. This essentially makes the Honam region the second semiconductor production base after the Seoul metropolitan area, and the value-added and job creation effects are expected to be greater compared to back-end processes or the physical AI industry. Consequently, the opposition People Power Party's reaction yesterday was to downplay the initiative, claiming, "The core is ultimately the 'Honam Semiconductor Cluster,' and the remaining projects are just side shows to dilute the concentration of benefits on Honam." Yesterday, lawmakers from the People Power Party representing Chungcheong, Daegu, and Gyeongbuk, and today, those representing Busan, Ulsan, and Gyeongnam, came forward in large numbers to express strong regret. The core issue is the lack of justification for 'why Honam?' Let's look at the relevant part of the press conference.

The People Power Party lawmakers, who demanded the government disclose the site evaluation sheets and plans for power supply and water procurement, added the following: At the beginning of the press conference, they laid down this premise: "We do not oppose the development of Honam. Nor do we wish to block the growth of any specific region. Any region has the need and the right to grow. Naturally, balanced national development in accordance with the Constitution and laws is also necessary." However, they argued that if the projects are pursued as announced yesterday, it would only result in regional discrimination.

'Regional discrimination' and the resulting 'regional conflict' and 'regional animosity' may seem unfamiliar to today's younger generation, but they have been a chronic disease plaguing Korean society since the 1970s. There is no dispute that regional animosity, often called a nation-ruining disease, originated from the Yeongnam-centered development strategy of the Park Chung-hee administration in the 1970s. Although the foundation for economic development was laid through the Heavy and Chemical Industry Development Plan in 1973, most investments and support were concentrated in the Yeongnam region, with the exception of the petrochemical complex in the Yeosu area. Not only economic power but also political and administrative power remained concentrated in Yeongnam until the election of President Kim Dae-jung in December 1997. It was the golden age of Yeongnam-based administrations. Since then, from the Kim Dae-jung administration to the Lee Jae-myung administration, the Democratic Party has produced four presidents, and it is also a reality that a certain vested interest has formed in Honam. Amid this, when the plan to establish South Korea's second semiconductor cluster in the Honam region was announced, the situation reversed, with Yeongnam now raising concerns of 'regional discrimination.'

Regarding these claims, President Lee Jae-myung said the following during a cabinet meeting this morning.
At yesterday's event, President Lee explained the selection of Honam as the semiconductor cluster site focusing on economic suitability. He noted that while the region had been marginalized from development for a long time, this had actually turned into an opportunity, making Honam the optimal site in terms of power, water, and land, which are essential for constructing a semiconductor cluster. He gave a similar explanation at today's cabinet meeting, adding the following remarks.
Looking only at yesterday's announcement, it is true that more investment is being directed to Honam. However, when comparing the historically highly discriminatory investment volumes between Yeongnam and Honam, the 896 trillion won for the Honam region is a mere drop in the bucket—literally 'bird's foot blood' (meaning a drop in the bucket). Since the history of South Korea's economic development strategy has seen Honam sacrificed to a Yeongnam-centered development strategy, this is a counterargument that the plan is correcting this past imbalance rather than discriminating against Yeongnam. This statement clearly reveals President Lee's historical awareness and perception of the current situation. For PPP politicians in Yeongnam, they will likely feel they cannot just sit idly by, and the controversy over whether this constitutes regional discrimination could grow. Since the president even used the expression 'a drop in the bucket,' the debate could heat up further as figures comparing investment volumes between Yeongnam and Honam since the 1970s are brought forward. Hopefully, while the debate may be fierce, politicians must never make reckless remarks or actions that rekindle regional animosity, the nation-ruining disease. This applies to both the ruling and opposition parties. I hope the debate will proceed calmly on whether the plan announced yesterday is realistic and desirable from the perspective of balanced national development.

This afternoon, the president held a national report meeting for the Honam region in Gwangju. The event was planned as a follow-up to yesterday's 'National Report on the Three Mega Projects,' and he said the following:
Report meetings for the Chungcheong and Yeongnam regions are also scheduled to follow. Unlike Honam, residents of Chungcheong and Yeongnam may feel a sense of relative deprivation and marginalization. As the president mentioned today, although he is a president from the Democratic Party, he is a president for all of South Korea, which necessitates a careful approach that takes into account the public sentiment in Chungcheong and Yeongnam. We will have to wait and see with what words the president will explain and persuade the residents of Chungcheong and Yeongnam regarding this plan.

A debate is in full swing over whether Honam is a suitable site for a semiconductor cluster in terms of power and water. Since this is a large-scale project being launched from scratch, any region would inevitably face shortages in power and water. The key will be whether the central and local governments, along with the companies involved, can join forces to solve the problems they face and make the project a success. Samsung is currently constructing eight fabs in Pyeongtaek and Yongin, while SK is building four in Yongin. They have announced plans to advance completion by 7 and 12 years, respectively, with active support from the central government. For the companies, this would be an immediate economic benefit they can grasp by responding to the Lee Jae-myung administration's request. What came in return is an additional investment plan worth 1,500 trillion won. However, like all projects, it will not be entirely rosy. The current investment plan is based on the outlook and expectation that the semiconductor business has entered an unprecedented 'big cycle' and that Samsung and SK will reap hundreds of trillions of won in operating profits every year, but who can guarantee that 100%? On the path to overcoming such uncertainties and succeeding in astronomical investments to create stable future growth engines, a calm response from the political circle will be essential to prevent the controversy over regional discrimination from escalating into serious regional conflict in the immediate term.
※ Please note: This article was translated by AI and may contain errors.