Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Drought risk missing in water supply plan for new chip cluster
Yeongsan River flows through Naju, South Jeolla Province, in this Aug. 13, 2024 file photo. Yonhap
By Nam Hyun-woo
Concerns linger over potential water shortage at southwestern semiconductor hub
Editor’s note
This is the first in a two-part series on challenges facing the planned semiconductor cluster to be built in the southwestern part of the country with a massive investment from Samsung Electronics and SK hynix, and government support for necessary infrastructure. — ED.
The government has come up with a plan to supply industrial water to semiconductor plants that Samsung Electronics and SK hynix have committed to build in Korea's southwestern region, but questions remain over the lack of clear principles on how water should be prioritized in the event of shortages during droughts.
The Ministry of Climate, Energy and Environment announced on Tuesday the plan to supply 650,000 tons of industrial water per day to the proposed chip cluster by adjusting water allocations from nearby dams.
The plan came in response to concerns raised by semiconductor companies and opposition parties that the region is vulnerable to water shortages. Citing this risk, the opposition bloc has argued that the government-led 800 trillion-won chip cluster plan is seeking to attract new semiconductor plants to an unsuitable area.
Under the plan, the government will secure 350,000 tons of water per day by combining the existing 50,000 tons of surplus capacity at Juam Dam with an additional 300,000 tons obtained by increasing the storage capacity of Dongbok Dam.
It also seeks to secure another 300,000 tons per day by using 100,000 tons of surplus water from Jangheung Dam, converting 100,000 tons of hydropower generation water to industrial use at Boseong River Dam and replacing 100,000 tons of agricultural water supplied by Naju Dam for industrial purposes.
The ministry added that additional adjustments would allow an extra 410,000 tons of water in emergency situations.
Minister of Climate, Energy and Environment Kim Sung-whan, right, speaks to Gwangju Mayor-elect Min Hyung-bae during their visit to Dongbok Dam in Hwasoon County, South Jeolla Province, Tuesday. Courtesy of Ministry of Climate, Energy and Environment
The government’s plan is based on the calculation that each semiconductor fab will require 150,000 to 200,000 tons of water daily. Since Samsung Electronics and SK hynix both committed to building two fabs each, the government believes the 650,000-ton supply would be sufficient to meet demand once the facilities are operational.
However, concerns remain over how the government will address rising water demand over the long term.
Industry officials noted that the planned chip cluster will encompass not only Samsung Electronics' and SK hynix's plants but also a wide range of suppliers. The cluster will also have tens of thousands of new residents with workers and their families. As water demand from those companies and the new workforce is expected to increase over time, they said relying on the current plan may not be a sustainable long-term solution.
“The current water supply plan is designed to support four fabs announced so far,” an industry official said. “Even if it is sufficient for those facilities, expanding the cluster with additional plants could eventually affect water supplies for nearby communities."
The dried bed of Dongbok Reservoir in Hwasun County, South Jeolla Province, is exposed in this March 20, 2023, file photo as a prolonged drought grips the Gwangju and South Jeolla region. Yonhap
The risks could become even greater during periods of drought.
The Gwangju and surrounding South Jeolla Province region relies on water resources from the Yeongsan and Seomjin rivers, whose combined watershed covers about 16,000 square kilometers. That is less than half the size of the Han River basin, which spans about 42,000 square kilometers, and the Nakdong River basin, which covers about 31,800 square kilometers, making the region the smallest among Korea’s four major water resource basins.
According to the government's 2021-2030 National Water Management Master Plan, the Yeongsan-Seomjin river basin would face an annual water shortage of about 78.4 million tons in the event of a once-in-50-years drought. By comparison, the Han River basin, despite being nearly three times larger, is projected to face a shortage of 82.9 million tons under the same scenario, highlighting the southwestern region's greater vulnerability to drought.
In 2022 and 2023, Gwangju and South Jeolla Province came close to imposing water use limits for citizens after suffering severe drought.
Environmental groups argue that the government must present clear principles on how water would be allocated in the case of such droughts.
"Securing enough water and deciding how to allocate it should be considered separately," the Korean Federation for Environmental Movement said in a statement.
“The government's plan does not explain how decisions on water allocation would be made or what discussions would take place with stakeholders, including local residents, farmers, civil society groups and local governments. Water is not a resource that the government can unilaterally allocate to a specific industry. It is a public resource that must be distributed by balancing various public interests," the statement continued.
"You cannot prioritize supplying water to factories when there isn't enough drinking water for people,” the industry official said. “The government needs contingency plans for such emergency situations.”