Busan City’s Final Push to Attract Semiconductor Industry Specialized Complex

February 1, 2 PM at Seoul Square, Evaluation of 'Materials, Parts, and Equipment Industry Specialized Complex' Attraction Announcement

Deputy Mayor Lee Seong-gwon's Semiconductor Specialized Complex Development Strategy & Mayor Park Hyung-jun's Dec

On the 1st at 2 p.m., Busan City will participate in a local government presentation evaluation at Seoul Square (Jung-gu, Seoul) to attract the ‘Materials, Parts, and Equipment Industry Specialized Complex’ (hereinafter “SoBuJang Industry Specialized Complex”) promoted by the Ministry of Trade, Industry and Energy.

During the presentation evaluation, Deputy Mayor for Economic Affairs Lee Seong-gwon will serve as the presenter and explain Busan’s semiconductor SoBuJang industry specialized complex development plan for 15 minutes. Following this, three key company representatives, including Professor Lee Ho-jun from Busan National University and CEO Lee Geon-jong of Hyosung Chemical, who accompanied him, will respond to a 10-minute Q&A session with the evaluation committee.

The Ministry of Trade, Industry and Energy is conducting a public contest procedure in the first half of this year to designate ‘National Advanced Strategic Industry Specialized Complexes’ and ‘SoBuJang Industry Specialized Complexes’ targeting local governments. Busan City submitted applications for designation focusing on the semiconductor sector in February and April, respectively.

The city has devoted great effort to fostering the semiconductor industry as a core project of its administration and plans to accelerate policy implementation through the designation of the semiconductor industry specialized complex.

The ‘National Advanced Strategic Industry Specialized Complex’ is a project aimed at promoting investment and technology development by creating an innovation ecosystem of education, research, and industrial facilities related to national advanced strategic industries and technologies, pursuant to Article 16 of the ‘Special Measures Act on Strengthening and Protecting National Advanced Strategic Industries.’ The ‘SoBuJang Industry Specialized Complex’ is a project to strengthen the competitiveness and supply stability of the materials, parts, and equipment industry by creating an ecosystem for the SoBuJang industry, pursuant to Article 45 of the ‘Special Measures Act on Strengthening the Competitiveness of the Materials, Parts, and Equipment Industry.’

Busan City completed the local government presentation evaluation for attracting the ‘National Advanced Strategic Industry Specialized Complex’ on May 17 at the same location, Seoul Square, with Deputy Mayor Lee Seong-gwon as the presenter, and is currently awaiting the selection results. The results for the ‘SoBuJang Industry Specialized Complex’ are also expected to be announced in July after the presentation evaluation.

Since 2010, the city has made efforts to foster power semiconductors as a future new industry. As a result, after passing the preliminary feasibility study for the ‘Power Semiconductor Commercialization Project’ in 2016, it completed the first phase of infrastructure construction from 2017 through the ‘Power Semiconductor Industry Cluster Development Project’ in the Dongnam Region Radiation Medical and Science Industrial Complex (Jangan-eup, Gijang), including the establishment of the ‘Power Semiconductor Commercialization Center’ and the introduction of next-generation silicon carbide (SiC) power semiconductor integrated process equipment and reliability evaluation certification equipment.

Investment attraction and company relocations related to power semiconductors have also been steadily progressing. Starting with JEMJECO, the first company to relocate from the metropolitan area to the complex, SK Powertech, a power semiconductor chip manufacturing company affiliated with SK Group, completed its relocation earlier this year and began full-scale mass production of silicon carbide (SiC) power semiconductors.

Additionally, IAE, a specialized automotive semiconductor company, recently signed an investment agreement worth 150 billion KRW with Busan City to build power semiconductor production facilities for its affiliate, Trino Technology. Currently, about ten companies related to power semiconductors are either moving into or actively considering moving into the Dongnam Region Radiation Medical and Science Industrial Complex.

Busan City is also actively promoting semiconductor specialized workforce training projects to attract companies. Since 2019, it has been conducting on-site professional workforce training and master's and doctoral research support projects utilizing the infrastructure of the Power Semiconductor Commercialization Center, and since 2022, it has been operating a shared university for power semiconductors involving 13 regional universities.

Furthermore, Busan National University was selected for the Ministry of Education’s public contest project to designate and operate ‘Regional Semiconductor Joint Research Institutes.’ By 2025, with national and city funding of 18.4 billion KRW, a research institute will be established on the Jangjeon campus, serving as a hub for semiconductor talent development in the Dongnam region.

If Busan is designated as the semiconductor SoBuJang industry specialized complex this time, cooperation with the central government will accelerate the creation of a semiconductor industry ecosystem leading the electrification of mobility industries such as automobiles, ships, and aircraft, which are key industries in the Dongnam region, through various administrative and financial supports necessary for the establishment and operation of the specialized complex, including expedited permits, infrastructure expansion, and research and development (R&D).

Deputy Mayor Lee Seong-gwon plans to emphasize Busan’s long-standing efforts and achievements in fostering the semiconductor industry to the evaluation committee members during today’s presentation evaluation, highlighting Busan as the optimal location for the semiconductor SoBuJang industry specialized complex, equipped with a world-class transshipment port, international airport, railway network, and excellent living conditions.

Mayor Park Hyung-jun is expected to express strong determination to attract the semiconductor specialized complex to Busan through a video message at the end of the presentation evaluation, stating, “I will mobilize all my authority and Busan’s capabilities to lead Korea’s future new industry with the most successful operation of the semiconductor specialized complex.”