Kim Won-bae
The author is an editorial writer at the JoongAng Ilbo.
Calls to relocate semiconductor fabs slated for the Yongin semiconductor cluster to Saemangeum in North Jeolla Province mark a departure from conventional regional lobbying for industrial projects. These demands seek to politically overturn a national strategic industry already approved and under construction by invoking access to renewable energy. Asking companies to move fabs that have already broken ground in Yongin is unrealistic and would impose enormous national opportunity costs. The semiconductor industry is not a matter of simply moving buildings. It depends on dense ecosystems of skilled workers, supplier networks and research infrastructure.

The controversy escalated ahead of local elections after some North Jeolla politicians raised the idea and Climate, Energy and Environment Minister Kim Sung-hwan publicly echoed concerns about whether factories should move to regions with more power capacity. Attempting to use central government authority to relocate operating or soon-to-be-operating fabs to areas that have yet to meet basic location requirements is anachronistic and inappropriate. Advocates cite the principle of local production and local consumption of energy, yet it is unclear whether Saemangeum actually meets that standard better than existing sites.
According to the government's Power Statistics Information System, South Chungcheong Province generated the most electricity in 2024 at 103,618 gigawatt-hours, largely due to its concentration of thermal power plants. In terms of self-sufficiency, North Gyeongsang, South Jeolla and South Chungcheong all exceeded 200 percent, producing more than twice their own consumption and exporting the surplus. North Jeolla produced 15,878 gigawatt-hours, about 15 percent of South Chungcheong's output, with a self-sufficiency rate of 73 percent. While plans exist to build an RE100 industrial complex in Saemangeum, renewable sources with limited generation hours cannot reliably supply the massive and continuous power demand of semiconductor fabs.
If this logic were applied consistently, regions with higher existing output or self-sufficiency could demand that fabs be moved to their jurisdictions once they add renewable capacity. Such arguments would never end. Political pressure that distorts corporate location decisions ultimately harms the industry and the national economy.
At the same time, the current model in which the Seoul metropolitan area functions as a black hole absorbing provincial power and resources is not sustainable. Regional grievances are clear. Electricity is largely produced outside the capital area, yet power-intensive factories are concentrated around Seoul. While tax revenues collected in the capital are redistributed through grants and subsidies, that mechanism alone can no longer justify persistent concentration.
The solution is equally clear. Instead of pressing the central government to force relocations, regions must compete to create sites companies cannot ignore. Stable electricity supply is necessary but insufficient. Abundant industrial water and livable environments that allow skilled workers to settle, including housing, education and health care, must also be in place.
Japan's Kyushu region offers a useful comparison. Through long-term coordination between local governments and companies, it built infrastructure, talent pipelines and supply chains to become a semiconductor hub. Investments by firms such as Sony and Taiwan's TSMC flowed to Kyushu not because it was rural but because it was competitive.

The same applies to Texas in the United States. In 2024, Texas ranked first in U.S. natural gas production, with gas accounting for 44 percent of power generation. Wind made up 24 percent and solar 10 percent, while nuclear and coal provided additional stability. Combined with aggressive state tax incentives and work force programs linked to universities, this energy mix ...