Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Jeolla region eyed for new semiconductor cluster: presidential policy chief
Kim Yong-beom, the presidential adviser for policy, speaks during a forum hosted by Kwanhun Club, an association of senior journalists, in Seoul, Wednesday. Yonhap
By Yi Whan-woo
Kim Yong-beom renews call for discussion on sharing AI windfall
The government and chip companies are planning to establish a massive semiconductor cluster in the Jeolla region, separate from the current one near the capital, the presidential policy chief said Wednesday, citing abundant electricity and water in the southwestern provinces.
He also stressed the need to start public discussion on how to share the benefits of the artificial intelligence (AI) era, saying the issue comprises social networks, labor policy and excess tax revenue generated by the booming AI-related industries.
Speaking at a forum hosted by Kwanhun Club, an association of senior journalists, presidential adviser for policy Kim Yong-beom said the AI boom presents an opportunity to redraw Korea's industrial geography, drawing a parallel with how a manufacturing cluster in the southeastern region transformed Korea into an industrial powerhouse decades ago.
He said the demand for chips has skyrocketed and companies are being pressed to advance their plans to construct relevant plants and facilities. While Samsung Electronics and SK hynix are currently building massive semiconductor clusters in Yongin, Gyeonggi Province, Kim said, "Even if we want to build more in the area around the capital, the area has little land, electricity and water left."
For the potential site for the new cluster, Kim noted that the government and companies are eyeing sites around Gwangju and in North and South Jeolla provinces. He said the plans would be pursued alongside clusters that already exist or are being built in the greater Seoul area, not replacing them or moving facilities to the southwestern region.
“Balanced regional development should be approached as a new growth strategy,” Kim said.
He went on to say that the infrastructure needed for the AI era, such as data centers, advanced manufacturing, renewable energy and next-generation power grids, is "closely aligned with the strengths of regional areas."
Kim said that discussions are underway between the companies involved and the government over the location of the new cluster.
He also called for a nationwide discussion on how to distribute excess tax revenues generated by the chipmakers' massive profits, warning that AI-driven growth risks deepening inequality if the benefits are not broadly shared.
Earlier, he proposed using the revenues under the name of a "national dividend," so all citizens can enjoy the AI windfall — comments that caused controversy.
"AI can make a country wealthier, but there is no guarantee that all citizens will benefit equally," he said.
“We need social discussions on social policy, labor policy and the use of surplus tax revenues to address the challenge of K-shaped growth,” he added, referring to a pattern of economic growth that widens the gap between high- and low-income groups.
Assessing the broader economic outlook, Kim said Korea will look "completely different in four years," when President Lee Jae Myung's term ends, pointing to forecasts of real GDP growth of around 3 percent this year and nominal growth exceeding 10 percent, putting the country's per capita income closer to $40,000.