[Edaily Reporter Kim Yeong-hwan ] The government, KoreaElectricPower (KEPCO), SamsungElectronics(005930), and SK hynix(000660)have joined forces to ensure a timely power supply for a major semiconductor project. By signing an agreement outlining the construction of transmission and substation facilities for the Honam region and the Yongin Semiconductor Industrial Complex, as well as the principles for cost-sharing, they are accelerating the development of power infrastructure—a key challenge in establishing a large-scale semiconductor production hub.

The Ministry of Climate, Energy, and Environment announced on the 12th that it held the “Power Supply Agreement Ceremony for the Honam Region and Yongin Semiconductor Mega-Projects” at the KoreaElectricPower Corporation’s Gyeongin Construction Headquarters in Jung-gu, Seoul. The ceremony was attended by Kim Seong-hwan, Minister of Climate, Energy, and Environment; Kim Dong-cheol, President of KoreaElectricPower Corporation; Min Hyung-bae, Mayor of Gwangju, South Jeolla Province; Kim Yong-kwan, President of SamsungElectronics; and Yeom Seong-jin, President of SK hynix.

The purpose of this agreement is to establish power supply infrastructure and devise cost-sharing plans to ensure the timely operation of the semiconductor industrial complexes. The participating organizations signed a total of three agreements: one for the Honam Region Semiconductor Industrial Complex and two for the Yongin National Semiconductor Industrial Complex and General Industrial Complex.

This agreement also lays the groundwork for the power supply to the Honam and Yongin semiconductor clusters—key projects under the “Three Major Mega-Projects for Korea’s Great Leap Forward” announced by the government last June. It signifies the establishment of a system in which the government, local governments, power authorities, and companies jointly assume responsibility for everything from power grid construction to permitting and cost-sharing.

The Honam Region semiconductor industrial complex is expected to generate power demand of over 6 GW in the future. Accordingly, the government and KEPCO plan to preemptively establish Phase 1 power supply facilities (capable of supplying approximately 3 GW) to ensure that the initial fabs can begin operations in 2029, in line with corporate investment schedules, and subsequently expand supply capacity to a cumulative total of over 6 GW by constructing additional facilities.

To this end, a supply network connecting to the industrial complex will be established using the Sinjang-Sin-Gwangju transmission line; one substation will be installed within the complex as a priority, followed by the construction of additional substations. The costs of the power supply facilities will be shared between the public and private sectors based on usage proportions, and the government plans to seek national fiscal support for a portion of the private sector’s share in accordance with the recently enacted Special Act on Semiconductors.

The Yongin National Semiconductor Industrial Complex and the General Industrial Complex are national strategic projects involving SamsungElectronics and SK hynix. Through the announcement of the “Three Major Mega-Projects for Korea’s Great Leap Forward” on June 29, the government set a goal to double memory production capacity within five years by accelerating the completion of the final fabs.

Accordingly, starting with the initial power supply to the General Industrial Complex in July of this year, the Yongin National Semiconductor Industrial Complex and General Industrial Complex are projected to generate a power demand of over 14 GW by 2041.

The Yongin National Industrial Complex will supply power in phases to a total of six semiconductor production plants (fabs) by 2041. In Phase 1, initial power demand will be met by 2032 using short-distance transmission lines near the complex and three 1-GW LNG power plants within the complex. These power plants will be developed to replace capacity from aging coal-fired power plants.

Next, in Phase 2, the transmission capacity of existing transmission lines will be expanded by 2035 to meet additional power demand. Ultimately, the plan is to complete the power supply system for the National Industrial Complex by constructing new transmission lines to transport power from the East Coast and the Central Region to the Seoul Metropolitan Area.

The Yongin General Industrial Complex will receive its initial power supply via a transmission line connecting the Sin-Anseong Substation and the Dong-Yongin Substation, both of which were completed in July of this year. Subsequently, to meet increasing power demand, the government plans to accelerate the construction of transmission lines near the industrial complex and supply lines from the East Coast in 2031 and 2032, respectively.

The government plans to use this agreement as an opportunity to accelerate financial support through the Special Act on Semiconductors and to expedite licensing and approval procedures.

Minister Kim stated, “The key to the success or failure of this semiconductor mega-project is the rapid supply of electricity,” adding, “The government, companies, and the local community will work as one team to drastically streamline administrative procedures and spare no effort to ensure that power is supplied in a timely manner to coincide with the construction of the new industrial complex.”

President Kim emphasized, “As the agency responsible for the nation’s power infrastructure, KEPCO plans to focus all its capabilities on ensuring that power is supplied in a timely manner to meet the growing power demand from companies,” adding, “Through today’s agreement, we will actively support the enhancement of the competitiveness of South Korea’s semiconductor industry.”