Political Circles

[Exclusive] Race to Develop Semiconductor and Military Airfield Projects... Ruling Party Pushes for “9 Major Legislative Priorities” for Honam Mega Projects

Mega Special Zone Act to Be Proposed Next Month, Enacted by Year-End Plan to Ease Labor Conditions, Including the 52-Hour Workweek, Takes Shape Includes provisions for the consolidated processing of permits and licenses for power facilities, etc. Amendment to the Special Act on Semiconductors to Be Proposed Next Month Study on Special Act for Military Air Base Relocation Also Underway

Kong Chi-Yu
2026-08-26 16:04:53
[Edaily Kong Chi-Yu Reporter Hwang Byung-seo] As the government accelerates its push for three major mega-projects—centered on the construction of an 800 trillion won semiconductor manufacturing plant (fab) in the Honam region—the ruling Democratic Party of Korea has drawn up a “package of legislative tasks” that must be enacted or amended by the end of this year. The plan is to expedite the passage of comprehensive legislation, including the core Mega Special Zone Act, as well as bills related to permits and the relocation of military airports.
A view of the construction site for the Yongin Semiconductor Cluster General Industrial Complex in Yongin, Gyeonggi Province. (Photo = Yonhap News)
(Photo = Reporter Kim Il-hwan)

According to a comprehensive report by Edaily on the 26th, the Democratic Party has identified nine major bills related to mega-projects in the Honam region that must be passed by the end of this year as legislative priorities. This “mega-project legislative agenda” package includes a wide range of measures, such as providing tailored support packages to enable Samsung Electronics and SK Hynix to make large-scale regional investments, and relaxing licensing and permitting regulations to expedite the development of industrial complexes.

By responsible ministry, the Ministry of Trade, Industry and Energy accounts for three bills, the Ministry of Land, Infrastructure and Transport for two, the Ministry of National Defense for two, and the Ministry of Climate Change for two. Among these, the “Special Act on Strengthening and Protecting the Competitiveness of National High-Tech Strategic Industries” (sponsored by Rep. Kim Won-yi and others), the “Act on Industrial Sites and Development” (sponsored by Reps. Bok Ki-wang and Eom Tae-young, among others), and the “Water Supply Act” (sponsored by Rep. Han Jeong-ae, among others) have already been proposed, while draft bills for the “Mega Special Zone Act” and the “Special Act on the Relocation of the Gwangju Military Airport” have not yet been prepared. The Democratic Party plans to submit these details to the respective standing committees in the near future and request that the committees prioritize the processing of these bills.

The Democratic Party plans to first introduce the “Special Act on the Designation and Operation of Mega Special Zones” as a member-sponsored bill next month, with the goal of enacting it by the end of the year. The Mega Special Zone Act is a bill that provides exceptional regulatory exemptions and tailored support packages for companies such as Samsung Electronics and SK Hynix when they make investments. Although concerns have been raised within the party—particularly by the Special Committee on Climate and Labor—regarding the relaxation of labor regulations, such as “exemptions from the 52-hour workweek,” it is reported that the party is moving toward a plan that eases working conditions.

The government is also pushing to expand the scope of projects eligible for consolidated permit processing within semiconductor clusters and to implement a provision whereby permits are deemed approved if they are not granted within a specified period. The ruling party and the government have decided to introduce an amendment to the “Special Act on Strengthening the Competitiveness and Support of the Semiconductor Industry” (Semiconductor Special Act), which includes these provisions, sometime next month. Currently, various permits required for the construction of power connection facilities or water supply pipelines during the development of semiconductor clusters must be obtained individually; the aim is to speed up the construction of core infrastructure—such as power and water supply—by expanding the scope of permits to allow for batch processing.

A policy research project is also underway to amend the Special Act on the Relocation of the Gwangju Military Airport. Under current law, the relocation of a military airport proceeds via a “donation-for-transfer” process, in which a local government builds a new military airport and donates it to the state, thereby receiving the vacated site in return. However, there are significant concerns that this approach may prevent the Gwangju cluster from achieving its goal of completing the first-phase fab by 2029. Accordingly, the Democratic Party is considering proposing an amendment to the Special Act that would explicitly codify a “pre-transfer” exception, allowing for the “development of the military airport site to begin immediately upon receiving the site” if specific requirements—such as the establishment of a semiconductor cluster—are met. The plan is to conduct the research study to establish the legal basis for this provision and to process the amendment in the second half of the year.

With the regular session of the National Assembly set to begin in earnest on the 1st of next month, the Democratic Party is expected to accelerate its legislative efforts, focusing on the relevant standing committees. On the same day, President Lee Jae-myung presided over the 10th Central-Local Cooperation Meeting held at the Blue House and stated, “I believe that the multipolarization of strategic industries with a ‘super-gap’ advantage—symbolized by the three major mega-projects—will be the key to ushering in an era of growth for all, where the entire nation develops together.” President Lee’s vision is to foster industrial growth and create jobs by multipolarizing strategic industries with a “super-gap” advantage—including the three major mega-projects—across the regions.

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