Korea to enact special law speeding semiconductor, AI megaprojects

The presidential office plans to enact a special law by the end of this year to support the government’s three “megaprojects” — large-scale initiatives aimed at strengthening Korea’s competitiveness in semiconductors, physical AI and AI data centers.

“We will push to enact the special law on ‘mega special zones’ within this year to shorten various approval and environmental impact assessment procedures and swiftly establish infrastructure such as electricity, water and transportation, as well as residential and educational facilities,” Presidential chief of staff Kang Hoon-sik said Monday during a briefing.

The press conference covered the results of the second public-private review meeting on the megaprojects, chaired by President Lee Jae Myung, held the same day.

The mega special zones are designed to economically foster regional strategic industries, including the proposed semiconductor cluster in the Honam region, which refers to the southwestern Jeolla area and Gwangju.

The legislation for the area is intended to accelerate balanced regional development by granting regulatory exemptions, tax and financial incentives and support for attracting skilled workers. 

The presidential office will also establish a dedicated organization for the megaprojects and set up an interagency support council under the Prime Minister’s office to strengthen cooperation among government ministries.

Regarding the Honam semiconductor cluster, facilities at Gwangju military airport — where the cluster will be built — will be temporarily relocated to other military airports by the second half of 2028.

“We will complete the relocation and temporary dispersal of military facilities by the second half of 2028 so that the military airport site can be used for a semiconductor industrial complex as early as possible,” Kang said.

The planned site of an ammunition depot will be cleared in advance so construction of semiconductor fab plants can begin at the earliest possible date. In addition to the 8.3 million square meters (3.2 square miles) currently designated as a candidate site for a national industrial complex, the government will consider designating additional nearby sites after assessing corporate demand.

The government will also draw up plans to secure water supplies using reclaimed wastewater and nearby dams, as well as measures to ensure sufficient electricity supplies.

The government plans to consult with the United States over issues involving U.S. facilities at the Gwangju military airport. The U.S. has so far responded positively, according to a presidential office official.

Labor groups and government ministries remain divided over a possible exemption from the 52-hour workweek limit that could be included in the special legislation.

The proposed law is reportedly set to exempt managers and researchers in the top 3 percent of income earners from the 52-hour cap and overtime, night and holiday pay requirements, instead allowing employers to provide fixed allowances.

“We do not believe the success of the megaprojects is directly tied to the 52-hour workweek,” a senior presidential office official said. “It is something that can only be pursued when the region concerned and labor groups discuss the issue together and reach an agreement.”

“This is not something the presidential office can unilaterally direct, so we are taking time to carefully consider the matter,” the official added.

Investment in the Chungcheong and Yeongnam regions will also begin in earnest this year. Yeongnam refers to the southeastern Gyeongsang region, including Busan, Daegu and Ulsan.

“In the Chungcheong region, six companies are set to begin construction or expand facilities this year on projects worth a combined 246 trillion won ($174 billion), while eight companies in the Yeongnam region will begin projects worth a combined 107 trillion won,” Kang said.

Research and development projects worth 57 trillion won will also begin as planned this year. The government will establish regional consultation channels among the central government, municipal governments and companies to address difficulties that arise during the investment process.

The government also plans to significantly increase its purchases of robots to help develop the physical AI market.

Minister of Trade, Industry and Resources Kim Jung-kwan reported that the government plans to purchase more than 1,000 robots by 2030, including quadruped robots and 700 humanoid robots, to help create an initial market.

“This is not enough to create a physical AI market,” President Lee said, directing officials to “significantly expand the scale of government purchases based on a survey of demand and build a robotics ecosystem.”

The government will also pursue measures to promote cooperation and shared growth between large companies and small- and medium-sized enterprises (SME).

A 1 trillion won cooperation project, under which large companies and SMEs will collaborate from technology development through mass production, will be carried out over the next 10 years. The government plans to provide 5 trillion won in trade financing to help export-oriented materials, parts and equipment companies overcome funding difficulties and establish a new 5 trillion won semiconductor fund.

“We will closely monitor and support companies as they carry out their investment plans so that the megaprojects that have now set sail can stay on course, while doing our utmost to ensure that the broader industrial ecosystem grows together in the process,” Kang said.

BY PARK JONG-SUH [kim.jiye@joongang.co.kr]