Suncheon Mobilizes Proactive Response Following Passage of Special Semiconductor Act

Full-Scale Launch of Strategies to Attract an RE100-Based National Semiconductor Industrial Complex

With the passage of the "Special Act on Strengthening Competitiveness and Support for the Semiconductor Industry" at the National Assembly on January 29, significant changes are expected in the future landscape and development strategies of South Korea's semiconductor industry.

The city of Suncheon views the enactment of this special law as a turning point, marking the expansion of the semiconductor industry beyond the Seoul metropolitan area into regional centers. In response, Suncheon has launched proactive measures to attract a national RE100-based semiconductor industrial complex.

Perspective view of the 'RE100 Semiconductor Attraction Complex' in Suncheon. Provided by Suncheon City

The newly passed special semiconductor law encompasses the designation of semiconductor clusters and national industrial complexes, support for the development of essential infrastructure such as electricity, water, and roads, the application of special exemptions for preliminary feasibility studies, and the provision of workforce, financial, and tax support. These measures serve as institutional mechanisms to foster the semiconductor industry at the national level.

Suncheon is particularly focused on the provisions in the law regarding ▲the designation of semiconductor clusters, ▲the priority designation of national industrial complexes within cluster regions, and ▲the allowance for overlapping designations with other special zones. The city explains that these provisions are especially significant as they provide a legal basis for local governments to strategically attract the semiconductor industry.

With this special law as a catalyst, Suncheon plans to further develop its strategy for establishing an "RE100 Semiconductor National Industrial Complex." RE100 refers to an industrial standard where 100% of electricity is sourced from renewable energy, which has become an essential requirement for international competitiveness in the energy-intensive semiconductor sector. Suncheon aims to leverage its renewable energy infrastructure to create an eco-friendly semiconductor industrial complex.

Accordingly, Suncheon will have its relevant departments review the requirements and procedures for semiconductor cluster designation and proactively refine plans for building essential infrastructure such as electricity, water, and roads. In addition, the city will develop strategies for fostering semiconductor talent and attracting upstream and downstream industries, including materials, components, and equipment, with the goal of establishing a comprehensive industrial ecosystem.

Suncheon Mayor Noh Gwan-gyu stated, "The enactment of this special semiconductor law will support balanced national development and serve as a catalyst for the decentralization and relocation of the semiconductor industry to regional areas. Suncheon will flexibly and proactively incorporate strategies to attract the RE100 Semiconductor National Industrial Complex in line with the implementation of the special law, and all departments will make every effort to achieve tangible results."

Moving forward, Suncheon will continue to monitor government semiconductor industry policies and changes in laws and regulations, and will work to link the institutional effects of the special law to regional growth strategies through collaboration with expert networks, central government agencies, and related organizations.