South Korea’s Jeonnam-Gwangju pivots to semiconductor supply chain

The Jeonnam-Gwangju region is building a semiconductor industry that connects petrochemical and steel centers in the southwest and east, forming a single supply network. The strategy, due to begin in November, consolidates existing industrial sites under one framework to draw in companies that produce semiconductor materials, components, and machinery, both domestically and internationally.

Central to the plan is the transformation of the Yeosu National Industrial Complex, which currently faces oversupply and rising costs. Yeosu has been named a Proactive Response Zone for industrial restructuring, receiving financial aid and job support while converting its petrochemical facilities into a semiconductor supply chain. Both major corporations and smaller businesses will receive coordinated help to stay competitive during the transition.

Min Hyung-bae, the mayor of Jeonnam, has designated the Muan National Industrial Complex as a critical part of the semiconductor network. The region will also strengthen ties with renewable energy, AI computing, and shipbuilding sectors to support the new industry. Additional measures include workforce training and grouping companies to speed the shift from traditional industries to high-tech production.

On October 13, municipal officials will discuss the eastern region’s semiconductor development at a council meeting. The session will detail how Yeosu’s restructuring will bolster the broader semiconductor industry, with industry analysts monitoring whether the plan can restore the complex’s viability while ensuring sustainable growth.