[Edaily Marketin KIM SUNG-SOO Reporter] As the government pushes forward with an “800 trillion won” semiconductor mega-project in the Honam region, experts have advised that to increase the likelihood of success, the government must not only expand power generation capacity but also ensure “grid flexibility” and “safety.”

Analysis suggests that while the Honam region possesses abundant renewable energy generation potential, transforming this large-scale power into actual industrial competitiveness requires the timely expansion of transmission grids and substations, along with the establishment of technological and operational systems to support power quality and grid stability.

“Continuity and Quality of Power Supply” Crucial for Semiconductor Factories

Moon Seung-il, Director of Research at the Korea Energy Technology University (KENTECH), emphasized the importance of energy on the 5th at the “Honam Region Semiconductor Mega-Projects and Future Power Infrastructure Forum,” held as part of BIXPO 2026—an event organized by the Korea Electric Power Corporation (KEPCO)—at the Kim Dae-jung Convention Center in Gwangju-Jeonnam Integrated Special City.

He explained that, with Jeonnam and Gwangju launching as an integrated special city and semiconductor mega-projects underway, “power infrastructure” must be prepared proactively.

Previously, on June 29, the Lee Jae-myung administration officially announced plans to create an 800 trillion won semiconductor cluster in the Honam (Southwest) region during the “Public Briefing on the Three Major Mega-Projects for Korea’s Great Leap Forward.” Led by Samsung Electronics and SK Hynix, a total of 800 trillion won will be invested.

Four additional memory semiconductor fabs (two by Samsung Electronics and two by SK Hynix) will be built at semiconductor production hubs in the Honam region, including the integrated city of Gwangju and South Jeolla Province. The government aims to break ground in 2028, complete the first fab in 2029, and begin semiconductor production in June 2030.

Director Moon stated, “I don’t believe Samsung and SK Hynix decided to come to this region based solely on persuasion from political circles,” adding, “Since these are businesses, they must have judged that South Jeolla and Gwangju are the best regions for conducting their operations.”

He continued, “One of the key reasons is electrical energy,” noting, “This region is ideal for securing existing power supplies and is also an excellent location for utilizing renewable energy.” However, he emphasized, “We are not yet prepared,” adding, “How we prepare and move forward is our challenge.”

Director Moon believed that, given the scale of the investment project, the burden of additional investment in power infrastructure would not be relatively significant.

He said, “In a situation where we are pursuing a project worth over 800 trillion won, if an additional investment of 10 to 20 trillion won is required, that would not be a major issue,” adding, “We would not abandon an 800 trillion won project just to save 10 to 20 trillion won.” He also expressed the view that the project could be realized quickly if the government and local authorities provide appropriate support.

“Continuity and Quality of Power Supply” Crucial for Semiconductor Factories

Moon Chae-ju, Director of the Military Energy Transition Research Center at the Korea University of Energy Technology, highlighted the need to transform the power grid to accommodate the expansion of renewable energy, while addressing changes in national energy policy and the current state of power infrastructure in the Honam region.

Regarding the government’s energy transition policy, Director Moon explained, “The direction is to deploy over 100 GW of renewable energy by 2030, shift from a centralized to a decentralized power grid, and simultaneously ensure flexibility and stability.”

She continued, “The power grid cannot be stabilized by simply expanding renewable energy,” adding, “We must apply the latest technologies and reinforce infrastructure to compensate for any gaps that arise.”

He cited semiconductor factories, nuclear power plants, and military bases as facilities where power outages are simply not an option. He pointed out that semiconductor factories, in particular, rely on precision equipment, making not only “continuity of power supply” but also “power quality” critical.

Center Director Moon said, “Semiconductor factories that use precision equipment require not only high instantaneous voltage but also protection against voltage surges,” adding, “Nuclear power plants, military bases, and semiconductor factories are places where power outages must be avoided at all costs.” He explained that the power quality necessary for semiconductor production must be ensured through equipment and technology that compensates for voltage fluctuations.

While the Honam region’s potential for renewable energy generation is a strength, expanding the transmission grid to connect it to consumption centers was identified as a difficult challenge.

Center Director Moon said, “Plans to expand the transmission grid using technologies such as high-voltage direct current (HVDC) are being discussed to send renewable energy produced in Honam to the Seoul metropolitan area, including the Yongin Semiconductor Industrial Complex,” adding, “The key issue is consulting with local residents.”

He emphasized that securing community acceptance during the construction of transmission lines could determine the project’s timeline. “Convincing residents is extremely important,” Center Director Moon said, adding, “I believe obtaining their permission is crucial.”

He also identified grid stability issues arising from the expansion of renewable energy as a key challenge. This is because an increase in inverter-based power sources, such as solar and wind, could weaken the inertial function previously provided by conventional synchronous generators. Director Moon explained that the introduction of grid-forming (GFM) inverters—which regulate grid voltage and frequency—should also be considered for military base microgrids.

“Military bases must not experience power outages during wartime or disasters,” he said. “While smart inverters are currently being installed in military microgrid projects, measures should be put in place to ensure they can be replaced with grid-forming inverters once the projects are completed.”