South Korea to expedite administrative procedures for mega semiconductor cluster project

SEOUL, Aug. 4 (Yonhap) -- The Ministry of Trade, Industry and Energy said Tuesday it will focus on expediting administrative procedures for the government's mega development project to build a new semiconductor cluster in the second half of the year.

"The ministry will make an all-out effort to ensure the swift implementation of the three megaprojects in semiconductors, physical artificial intelligence (AI) and AI data centers," the ministry said in a report submitted for a policy briefing to President Lee Jae Myung.

The "three megaprojects" initiative, unveiled in late June, calls for large-scale investments in semiconductors, physical AI and AI data centers in regional areas.

Under the chip cluster project, Samsung Electronics Co. and SK hynix Inc. have pledged to invest trillions of won to develop the new semiconductor hub in the southwestern region and expand facilities in other areas.

The ministry said it plans to complete the selection of the project developer and candidate sites for the industrial complex in the southwestern region by the end of this year, followed by efforts to secure power and water supplies and complete the necessary permitting procedures.

For the semiconductor cluster in Yongin, just south of Seoul, the ministry said it will expedite administrative procedures to support plans to bring forward the project's completion to 2029.

Regarding South Korea's US$350 billion investment pledge under the Seoul-Washington trade agreement, the ministry said it plans to finalize the first investment project.

As part of efforts to diversify export markets and strengthen supply chains, the ministry also said it will consider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a Japan-led trade pact comprising 12 member economies, including Australia and several countries in Southeast Asia and Latin America.