The Ministry of Climate, Energy and Environment (MCEE, Minister Kim Sungwhan) announced that it held the “Agreement Ceremony for Power Supply to the Honam Region and Yongin Semiconductor Mega Projects” at the Korea Electric Power Corporation (KEPCO)’s Gyeongin Construction Headquarters (located in Jung-gu, Seoul) on Wednesday, August 12, and signed an agreement to ensure timely power supply to semiconductor industrial complexes.

The agreement ceremony was attended by the MCEE, the Jeonnam-Gwangju Special Metropolitan City, Samsung Electronics, SK hynix, and KEPCO (Participating institutions), which signed a total of three agreements: one agreement on power supply to semiconductor industrial complexes in the Honam region (Honam regional industrial complex), and two agreements on power supply to the Yongin semiconductor national industrial complex (Yongin national industrial complex), and the general industrial complex (Yongin general industrial complex).

This has established the foundation for timely power supply to the Honam regional industrial complex and the Yongin national and general industrial complexes, which are key initiatives of the “Three Mega Projects for a Great Leap Forward for Korea” announced on June 29.

Under the agreement, the participating institutions will pool their respective capabilities to the fullest extent necessary to ensure timely power supply. In particular, Jeonnam-Gwangju Special Metropolitan City, which participated in the agreement on power supply to semiconductor industrial complexes in the Honam region, agreed to actively cooperate to ensure that the permits and approvals required for the construction of power supply facilities are obtained expeditiously.

< ① Honam Region Semiconductor Industrial Complex Power Supply Agreement >

Power demand in the Honam regional industrial complex is expected to exceed 6 GW. Accordingly, taking companies’ required timelines into consideration, Phase 1 power supply facilities (capable of supplying approximately 3 GW) will be constructed in advance to enable the initial fabrication facilities (fabs) to begin operations from 2029, followed by the construction of additional Phase 2 facilities to supply a cumulative total of more than 6 GW of power to the Honam regional industrial complex.

For the Honam regional industrial complex, the Phase 1 supply line will be constructed by branching off the Sinjangseong-Singwangju line and connecting it to the industrial complexes. The Phase 2 supply line will be developed in greater detail following technical reviews and consultations with companies and relevant organizations.

In addition, one substation will be constructed within the industrial complexes as part of Phase 1, followed by the construction of one additional substation as part of Phase 2.

The costs of the Phase 1 power supply facilities will be shared by the public and private sectors in proportion to their respective usage, while the government will pursue state financial support for a portion of the private-sector contribution following consultations among relevant ministries, pursuant to the “Special Act on Semiconductors,” which took effect on August 11.

< ② Yongin Semiconductor Industrial Complex Power Supply Agreement >

The Yongin national industrial complex and Yongin general industrial complex previously set a goal, as announced on June 29 under the “Three Mega Projects for a Great Leap Forward for Korea,” of significantly bringing forward the completion date for the final fabs and doubling memory production capacity within five years.

Accordingly, the agreement ceremony will amend certain provisions of the power supply agreement for the Yongin general industrial complex signed in November 2024 and establish a new agreement on Phase 2 power supply to the Yongin national industrial complex.

Starting with the initial power supply to the Yongin general industrial complex in July 2026, power demand in the Yongin national industrial complex and Yongin general industrial complex is expected to exceed 14 GW by 2041. 

In the case of the Yongin national industrial complex, power will be supplied in phases through 2041 for a total of six fabs. In Phase 1, by 2032, initial demand will be met through short-distance transmission lines near the industrial complex and three 1 GW LNG power plants within the industrial complex, utilizing capacity freed up by the replacement of aging coal-fired power generation. In Phase 2, additional demand will be met by 2035 through measures including increasing the capacity of existing transmission lines. Ultimately, transmission lines will be constructed to supply power generated on the east coast and in the central region, with the details to be developed following technical reviews and consultations with companies and relevant organizations.

For the Yongin general industrial complex, Phase 1 will provide initial power through a transmission line connecting the Sinanseong Substation, completed in July this year, to the Dongyongin Substation. In Phase 2, transmission lines near the industrial complex and a power supply line from the east coast will be constructed ahead of schedule in 2031 and 2032.

Minister Kim Sungwhan emphasized, “The key to the success or failure of the semiconductor mega-projects is the rapid supply of electricity.” He added, “The government, businesses, and local communities will work as one team to dramatically shorten administrative procedures and do everything possible to ensure that power is supplied on time in line with the construction of new industrial complexes.”

Min Hyung-bae, Mayor of Jeonnam-Gwangju Special Metropolitan City, said, “The Special City will expedite administrative procedures for the construction of the power grid to the greatest extent possible and ensure that infrastructure is prepared without a hitch in line with companies’ investment schedules.” He added, “The public and private sectors will work as one team to open a new chapter for Korea’s semiconductor industry in Jeonnam-Gwangju.”

Kim Dong-Cheol, President of KEPCO, stated, “As the institution responsible for the nation’s power infrastructure, KEPCO will concentrate all its capabilities on ensuring a timely power supply in line with the increase in electricity demand required by businesses.” He added, “Through today’s agreements, we will actively support efforts to enhance the competitiveness of Korea’s semiconductor industry.”

For further information, please contact the Public Relations Division. 

Contact person: Gina Lee, foreign media spokesperson

Phone: +82-44-201-6055

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