[Anchor]

President Lee Jae-myung has actively refuted criticisms that the recent investment project constitutes preferential treatment for the Honam region or amounts to arm-twisting businesses. He emphasized that the long-term lack of development in Honam has, in some respects, become a factor of opportunity, and that the government is not forcing losses upon companies.

Reporter Kang Cheongwan has the story.

[Reporter]

President Lee Jae-myung stressed the necessity of regional development, noting that while the success of the global artificial intelligence race depends solely on speed, the capacity of the capital region, where semiconductor complexes are currently being built, has reached its limit.

[President Lee Jae-myung: As inefficiencies due to over-concentration worsen, the capital region is on the verge of exploding, while local regions are facing a crisis of extinction.]

He particularly stated that the fact that Honam has been alienated from development for a long period has, in some aspects, become a factor of opportunity.

[President Lee Jae-myung: The southwestern coastal area is rich in water resources and, in particular, abundant in renewable energy.]

President Lee refuted the conservative opposition party's claim that this is a case of arm-twisting businesses, asserting that companies chose Honam for those very reasons.

[President Lee Jae-myung: It is not about forcing losses and risks on companies to achieve national needs as some fear, but rather enabling them to invest with a better outlook.]

Kang Hoon-sik, Chief of Staff to the President, explained that the conservative opposition's claim of arm-twisting is made without any understanding of corporate circumstances. He added that South Korea is in a situation where it must act with desperation, as failing to secure investments now could lead to a decline in future growth engines.

He further remarked, "Honam has the cheapest land prices," and added, "If it were possible for the government to simply tell companies to invest and have them do it, I think, 'Why didn't the Yoon Suk-yeol administration work hard at it as well?'"

(Video coverage: Jung Sang-bo, Yoon Hyung | Video editing: Jeon Min-gyu | Design: Kang Yoon-jung)