Senior politicians and technology company representatives pose for photographs after a memorandum of understanding signing ceremony during a public briefing on the development vision for advanced industry in South Korea's southwestern region, in Gwangju, South Korea, on June 30. | REUTERS
REUTERS
Jul 21, 2026
Seoul – South Korea has said it wants to establish a new semiconductor hub in its southwest within four years, but local opposition to the project’s massive power and water needs is set to be among its biggest obstacles.
The so-called Honam semiconductor industrial complex, estimated to cost at least 800 trillion won ($540 billion), is central to South Korean President Lee Jae Myung’s push to spread the gains of the AI chip boom beyond the prosperous Seoul metropolitan area.
However, companies involved in the plan such as Samsung Electronics will need to find new energy sources to power the project, with a goal to establish it by the end of Lee’s term in 2030.
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