Rep. Jang Dong-hyeok, chair of the main opposition People Power Party, on Friday rejected calls to relocate the Yongin semiconductor cluster, denouncing the proposal as election-driven rhetoric that could undermine South Korea’s industrial competitiveness.
Visiting the construction site of chipmaker SK hynix in Yongin, Gyeonggi Province, Jang warned that even raising the possibility of relocation risked destabilizing a project already deeply embedded in the country’s semiconductor ecosystem.
“This place is, in every sense, the future of South Korea,” Jang said. “It cannot be changed or shaken.”
Calling recent relocation arguments “political agitation aimed at winning votes in local elections,” Jang said reversing years of corporate investment and infrastructure buildup would amount to “selling out the nation’s future.”
With South Korea heading into local elections on June 3, political parties have already begun to ramp up competition, increasingly framing industrial policy through an electoral lens.
“The moment the Yongin cluster is shaken, South Korea’s future is shaken,” he added. “The damage will fall directly on the people and the economy.”
The debate over relocation gained traction following President Lee Jae Myung’s New Year’s address, in which he outlined a vision for a “southern semiconductor belt” as part of a broader push to link advanced industries with regional development.
While Lee did not explicitly call for moving the Yongin cluster, some lawmakers interpreted the remarks as opening the door to new semiconductor hubs in the Yeongnam and Honam regions.
Adding fuel, Climate Minister Kim Sung-whan said during a radio interview last month that “companies should go where electricity is abundant,” referring to Saemangeum in North Jeolla Province, a large-scale reclaimed coastal area on South Korea’s west coast, developed by the government as a hub for renewable energy, industry and international investment.
On Monday, ruling Democratic Party of Korea Rep. An Ho-young said that moving semiconductor companies to Saemangeum was “the only solution for national survival.” An then launched a special committee under the party’s North Jeolla provincial chapter with the goal of achieving relocation.
However, the presidential office on Thursday publicly shut down speculations about relocating the Yongin industrial complex, saying it would not tolerate any more related claims. Cheong Wa Dae also emphasized that it is not reviewing any plan to relocate the Yongin cluster, as controversy over the issue spread across political and business circles.
Presidential spokesperson Kim Nam-joon said during a briefing that “the relocation of companies in the cluster, including Samsung Electronics and SK hynix, is not under consideration,” adding that “decisions on corporate relocation should be made by the companies themselves.”
Kim explained that while the government may consider incentives such as tax benefits if companies choose to move to regional areas, relocation is ultimately a matter of corporate judgment. A senior presidential official underscored the point, saying, “The government has no intention of forcing companies to relocate in the future.”
A political source said the presidential office appeared to step in to settle the issue after repeated debate over proposals “with little practical feasibility.”
Jang urged the government to focus instead on strengthening competitiveness, arguing that easing regulatory constraints — including labor rules — would do more to secure the country’s technological edge than politicizing industrial strategy.
“We, the People Power Party, will take the lead in protecting South Korea’s semiconductor competitiveness,” he said.
Industry officials note that Yongin’s proximity to existing semiconductor operations in the capital region, along with its deep talent pool and supplier network, makes it difficult to replicate elsewhere in the near term.
The Yongin cluster, led by Samsung Electronics and SK hynix, is envisioned as the world’s largest integrated semiconductor manufacturing complex and a cornerstone of South Korea’s future chip supply chain. Spanning more than 11 million square meters in Gyeonggi Province, the project is designed to house 10 semiconductor fabrication plants — six by Samsung and four by SK hynix — along with supporting research facilities, suppliers and infrastructure.
Combined investment commitments from the two chipmakers exceed 900 trillion won ($617 billion), reflecting the cluster’s role in securing South Korea’s long-term competitiveness in memory and system semiconductors amid intensifying global competition.
SK hynix has already begun construction of its first factory in Yongin, with operations targeted to start next year, while Samsung is moving ahead with land acquisition and preparatory work for its system-semiconductor fabs, with construction slated to begin later this year and mass production planned for 2030.
The cluster’s location near existing semiconductor hubs in the capital region — including Samsung’s operations in Giheung, Hwaseong and Pyeongtaek, as well as SK hynix’s bases in Icheon and Cheongju, North Chungcheong Province — is widely seen as critical for securing skilled labor, supplier networks and research collaboration.
As debate continues ahead of local elections, Jang said the issue should not be reduced to regional populism.
“Industrial strategy must be guided by reality, not politics,” he said. “This is not something that can be toyed with.”
mkjung@heraldcorp.com
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