[Specialized Complexes] Yongin and Gumi for Semiconductors... Chungnam for Display, Chungbuk for Secondary Batteries, and 7 Sites Selected

Private Investment of Total 614 Trillion Won Promoted in 7 Specialized Complexes

Seven national advanced strategic industry specialized complexes have been selected to secure global leadership in advanced industries. Seven specialized complexes in the semiconductor, display, and secondary battery sectors will be established to support a total of 614 trillion KRW in private investment in advanced strategic industries by 2042.

On the 20th, the Ministry of Trade, Industry and Energy announced that it designated seven out of 21 applicant regions as national advanced strategic industry specialized complexes, focusing on the presence of leading companies, new investment plans, potential for industrial ecosystem development, and regional balanced development.

In the semiconductor sector, Yongin-Pyeongtaek (memory and system semiconductors) and Gumi (semiconductor materials) were designated as specialized complexes. Private investments of 562 trillion KRW will be made in Yongin-Pyeongtaek by 2042, and 4.7 trillion KRW in Gumi by 2026. To secure a super-gap in advanced system and memory semiconductor industries, the plan is to develop Yongin-Pyeongtaek in Gyeonggi Province as the hub of the world's largest semiconductor cluster and specialize Gumi in North Gyeongsang Province as a supply base for key semiconductor process raw materials such as wafers and substrates. This will also enable linked development with the currently operating semiconductor production complexes in Icheon and Hwaseong.

Next-generation display specialized complexes will be established in Cheonan and Asan, Chungnam Province, with private investments of 17.2 trillion KRW by 2026. To reclaim the world's number one position in displays, the plan is to create an innovation hub for next-generation displays, making it a starting point for next-generation (inorganic light-emitting) displays such as Quantum Dot (QD), beyond OLED. For secondary batteries, seven regions including Cheongju (battery cells) in Chungbuk Province, Pohang (cathode materials), Saemangeum (raw materials), and Ulsan (cells and materials) were selected as specialized complexes.

What are the main support measures for the specialized complexes?

The newly designated specialized complexes will receive tailored packages including ▲ expedited processing of permits and approvals, ▲ elimination of killer regulations, ▲ tax and budget support, ▲ relaxation of floor area ratio, and ▲ infrastructure support such as power and water supply to ensure timely private investment.

Requests for designation as national industrial complexes (from the Ministry of Trade, Industry and Energy to the Ministry of Land, Infrastructure and Transport) are possible for the establishment of specialized complexes, and the Ministry of Land, Infrastructure and Transport will prioritize processing such designations. Costs for constructing essential infrastructure required for the establishment and operation of specialized complexes, such as water supply, wastewater treatment, power facilities, and access roads, will also be prioritized for support.

Additionally, under the permit timeout system, if the result of a permit application is not notified within 60 days, the permit is considered approved. Through the site policy review committee (Ministry of Land, Infrastructure and Transport), the floor area ratio limit in specific zones within industrial complexes where advanced strategic technology holders are located can be increased up to 1.4 times. Corporate tax credits are also available for commercialization facilities and research and development (R&D) investments by companies holding national strategic technologies and new growth or foundational technologies.

Upon resolution by the Advanced Strategic Industry Committee, various special exceptions for preliminary feasibility studies (PFS) will be provided, including ▲ priority selection for PFS projects, ▲ expedited PFS review, and ▲ exemption from PFS when necessary for national security and industrial supply chain security. To secure a super-gap in advanced strategic technologies, government R&D budgets will be prioritized, and support for building testbeds for corporate demonstration will also be provided.

Following the selection of these national advanced strategic industry specialized complexes, the government plans to prepare customized detailed development plans for each complex in the second half of the year and establish an inter-ministerial support council that provides one-stop support for industry-academia-research cooperation and resolving corporate difficulties. Furthermore, for the bio industry newly designated as a national advanced strategic industry in May, specialized complexes will be announced in the second half of this year and designated in the first half of next year.

Lee Chang-yang, Minister of Trade, Industry and Energy, stated, “The third Advanced Strategic Industry Committee has significance in creating a super-gap innovation ecosystem by designating advanced strategic industry specialized complexes and specialized universities.” He added, “We will continue to pursue the ‘three major strategies for fostering advanced industries’ including designation of advanced strategic industries (semiconductors, displays, secondary batteries, bio), expansion of investment tax credits, securing overwhelming manufacturing capabilities through designation of 15 national industrial complexes, and establishing stable supply chains through specialized complexes for materials, parts, and equipment.”