South Korean President Lee Jae-myung chaired the second public-private joint inspection meeting for mega projects on the 10th, urging an acceleration of the "three mega projects" and calling for a "blitzkrieg" rather than just a "speed war." He specifically mandated the temporary relocation of core military functions at Gwangju Air Base within two years to free up space for a semiconductor mega project in the southwestern region.
According to reports, the South Korean government is pushing forward with the "three mega projects," totaling approximately 4,700 trillion won. The core initiatives include three directions: expanding the semiconductor supply chain, building AI data centers, and fostering the physical AI industry. Companies like Samsung Electronics and SK Group plan to invest about 800 trillion won in Gwangju to construct four semiconductor factories.
Analysis suggests that Lee Jae-myung's push for a "blitzkrieg" is aimed at avoiding the mistakes of the Yongin semiconductor project. The SK Hynix Yongin semiconductor project, announced in 2019, took six years to break ground due to issues such as environmental assessments, water supply, and land compensation. The accelerating pace of Chinese semiconductor companies is also forcing South Korea to speed up its industrial layout, with the relocation of military airfields and the construction of core infrastructure like electricity and water supply becoming urgent.
To accelerate the projects, the government plans to enact a "Super Special Zone Special Act" within the year to streamline approval and environmental assessment processes, speeding up the development of supporting infrastructure for electricity, water, and transportation. Related projects in the Chungcheong region, worth 246 trillion won, and the Yeongnam region, worth 107 trillion won, are also expected to start construction or begin equipment expansion within the year.
On the same day, South Korea also announced the establishment of a new 5 trillion won semiconductor special fund, focusing on investing in promising materials, components, equipment companies, and fabless design firms. An additional 5 trillion won in trade financing will be provided to ease the funding pressure on export-oriented materials, components, and equipment companies, promoting the investment outcomes of the "three mega projects" to spread upstream and downstream in the industrial chain.
However, media reports indicate that multiple obstacles lie ahead for this "blitzkrieg." Beyond approval efficiency, issues such as military deployment, ROK-US consultations, local interests, and labor systems all need to be resolved simultaneously. The military estimates that the redistribution of the Gwangju Air Base flight group will take at least three years. The presence of US Forces Korea (USFK) complicates the project's progress. Gwangju Air Base is a shared base for the South Korean and US air forces, with facilities for exclusive US use and shared use. ROK-US consultations on the relocation of related facilities have been ongoing since 2020, with the original plan to move to Muan by September 2033. Now, with the land clearance deadline brought forward to 2028, coordination on the return of US military facilities, the construction of alternative facilities, and joint operational arrangements may need to be renegotiated.
Furthermore, the 800 trillion won mega project has become embroiled in domestic political controversy. Commentary notes that from the announcement of the southwestern semiconductor project to the two inspection meetings, several key dates have coincided closely with the ruling Democratic Party's internal election schedule. The semiconductor industry layout, which should be determined by industrial conditions like water, electricity, and talent, is instead being tied to the ruling party's internal elections, according to some critical voices.
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