Gyeonggi Governor Kim Dong-yeon has expressed concern over the government's draft enforcement decree for the Semiconductor Special Act and called for its review.
In a Facebook post Tuesday, Kim said the draft decree "should not proceed as it is," adding that "concerns are growing among regions and companies due to a clause that specifies 'areas outside the capital region' as a requirement for designating semiconductor clusters."
Kim emphasized that Gyeonggi Province is the core hub of Korea's semiconductor industry. "The semiconductor industry depends on an ecosystem that spans design, production, marketing, materials, parts and equipment, and workforce," he said. "Gyeonggi has a natural concentration of anchor semiconductor companies and materials, parts and equipment firms, and the province has worked to expand infrastructure such as underground power grids."
He went on to argue that "the key to the global semiconductor hegemony race is speed," adding that "swiftly designating the most competitive Gyeonggi semiconductor cluster is the shortcut to strengthening the competitiveness of K-semiconductors."
While Kim said he sympathized with the need for balanced national development, he stated that the issue should not be approached as a competition between regions.
"Non-capital regions should be supported through industries suited to their local characteristics, while the Gyeonggi semiconductor cluster should proceed as planned for the sake of national competitiveness," he said. "We need a 'plus-sum' development strategy rather than a 'zero-sum' one."
He also stressed that "the investment decisions of companies that invested with trust in the government should not be shaken by policy changes," adding that "since a semiconductor cluster is a long-term project looking 30 or 50 years ahead, policy consistency is important."
Kim added that "Gyeonggi has already submitted an official objection to the draft decree to the Ministry of Trade, Industry and Energy," and that "Gyeonggi will protect Korea's semiconductor industry to the end so it is not shaken."
Meanwhile, the draft enforcement decree for the Semiconductor Special Act specifies "areas outside the capital region" as a requirement for designating semiconductor clusters, sparking controversy over reverse discrimination against Gyeonggi Province.
