Moon Shin-hak, Vice Minister of Trade, Industry and Energy, said the government is pursuing a plan to bring a southwestern semiconductor cluster into operation around 2031. He said the pace would be accelerated so that chips can be produced not merely after breaking ground during the term, but right after his term ends. To that end, the government is also reviewing a plan to build a liquefied natural gas (LNG) combined-cycle power plant near the semiconductor cluster.
Appearing on Korea Economic TV's "News Plus" on the 9th, Moon stressed, "The government is pursuing the goal of operating a fab in the southwestern region in 2030 or 2031." He added, "While the Yongin National Industrial Complex took seven to nine years just for site development, our goal is to shorten the preparation period in the southwestern region to two to three years." The southwestern semiconductor cluster had originally been known as a project to be completed and put into full operation in the mid-2030s, more than 10 years ahead of the Yongin semiconductor cluster, but Moon presented an even earlier timeline. Earlier, the Jeonnam-Gwangju Integrated Special City had also announced, following an experts' meeting, that it would begin mass production of semiconductors at the southwestern semiconductor cluster around 2030.
To achieve this, the government plans to cut administrative procedures as much as possible. The selection of the Gwangju military airport as the cluster site reflected the fact that most of the land is state-owned, making land compensation issues easier to resolve, and that as an airport, considerable leveling work had already been done. Moon said, "The government is exploring ways to carry out administrative procedures that were previously done sequentially in parallel and simultaneously." He added, "Samsung Electronics and SK hynix reviewed which of the various candidate sites in the Gwangju area could be developed the fastest, and both pointed to the Gwangju military airport."
Moon said that even if the operation date is moved up, there would be no problems with water and power supply. In particular, Moon explained that the government is reviewing a plan to build an LNG combined-cycle power plant close to the southwestern semiconductor cluster. He said, "The position of the Ministry of Climate, Energy and Environment is that it could build new nuclear plants if needed, and would also review an LNG combined-cycle power plant if needed."
The reason the government is even considering building an LNG power plant is time. Bringing a new nuclear plant into operation would require nearly eight years even if it uses the already-secured Hanbit Nuclear Power headquarters site in Yeonggwang County. Renewable energy also cannot supply power stably around the clock unless offshore wind is fully deployed after 2030. As a result, LNG combined-cycle generation, which can be built in a short period and can also minimize the burden of building transmission networks by being located near the industrial complex, has emerged as an alternative. LNG combined-cycle power plants also have the advantage of being able to provide the heat energy needed by the industrial complex in the form of steam when used in a cogeneration format.
The Ministry of Trade, Industry and Energy also plans to enact a mega special zone bill within this month to support mega projects being pursued in the southwestern region and across the country. Moon said, "In pursuing the '5 poles, 3 special zones' policy, the mega special zone law is the most central matter we have been preparing." He added, "We will enact a bill that includes a package of more than 100 support policies, encompassing not only regulatory exceptions but also taxation and fiscal measures."
