The government will enact a Mega Zone Act this year and push for new nuclear power plant construction to support three major mega projects: semiconductors, artificial intelligence (AI) data centers, and physical AI. It plans to launch comprehensive support covering electricity, water, sites, and housing, including creating residential complex towns comparable to the greater Seoul area and reviewing customized rental housing supply for companies and special allocations for workers.
President Lee Jae-myung said at the National Fiscal Strategy Meeting held at the Blue House on the 13th, "We will mobilize all of the government's capabilities so that investment in semiconductors, AI data centers, and physical AI can be carried out according to companies' timelines."
The government first plans to enact the Mega Zone Act this year to significantly shorten permit and licensing procedures within mega zones and provide tax and fiscal support as a package. Industry, Trade and Energy Minister Kim Jung-kwan said, "Institutional support that can be felt in the field is as important as fiscal support," adding, "Through the enactment of the Mega Zone Act, we will grant top-level regulatory exemptions to semiconductor investment companies."
The existing Semiconductor Special Act will be converted into an implementation-type special law responsible for carrying out large-scale national projects. In line with the Defense Semiconductor Support Act, which takes effect at year-end, a full-cycle support system involving the Defense Acquisition Program Administration and the Ministry of Science and ICT will also be established.
Support for AI data centers is also accelerating. Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon explained, "Building a 1GW-scale AI data center requires a site of at least 300,000 pyeong or more," adding, "We will operate a pan-government comprehensive support task force (TF) to fully support site acquisition, power supply, and permit and licensing issues."
The Ministry of Climate, Energy and Environment will pursue expansion of renewable energy, deployment of energy storage systems (ESS), and securing of new power sources to respond to large-scale power demand of more than 50GW by 2040. To supply the more than 2 million tons of industrial water needed daily by the Yongin and Honam semiconductor clusters, it will also expand multipurpose use of dams, wastewater reuse, and seawater desalination.
Climate Minister Kim Sung-hwan said, "To address the surge in power demand and stabilize baseload power sources, we will reflect whether to introduce new nuclear power plants and small modular reactors (SMR) in the 12th Basic Plan for Electricity Supply and Demand after going through a public deliberation process." He continued, "We will integrate dam functions currently divided by purpose and upgrade them so that all dams can be used for multiple purposes."
The Ministry of Land, Infrastructure and Transport will apply exemptions from preliminary feasibility studies and permit and licensing fast-tracks to fab sites to shorten the industrial complex development period, while creating residential complex towns comparable to the greater Seoul area. It will also push measures to supply specialized rental housing proposed by companies and, if necessary, support special allocations for advanced industry workers.
Land Minister Kim Yoon-duk said, "We will complete land compensation this year by conducting site negotiation compensation and expropriation procedures in parallel and begin construction," adding, "We will supply infrastructure linked not only to Honam but also to the Yongin industrial complex in a timely manner."
