Gyeonggi Province has cleared a key regulatory hurdle in its push to secure national semiconductor cluster status after South Korea removed a capital-region exclusion from the enforcement decree supporting its new semiconductor special law.
The final decree allows Gyeonggi, home to major chip manufacturing operations, to formally seek cluster designation and potentially access government support for infrastructure, permitting and workforce development.
A draft released for consultation in May had required applicants to be located outside the capital region, effectively preventing Gyeonggi from applying. The final version removes that requirement.
The decree also softens provisions favouring non-capital regions. Language stating that such regions “must be given preference” was changed to say they “should be given priority consideration”. The revision reduces the likelihood that companies and research institutions in Gyeonggi could be disadvantaged when seeking support, the province said.
The change is significant for South Korea’s semiconductor strategy because Gyeonggi already anchors much of the country’s chip ecosystem. The province includes SK hynix (KRX: 000660)’s Yongin cluster and Samsung Electronics (KRX: 005930)’ semiconductor operations around Giheung and Dongtan.
National cluster designation could help Gyeonggi secure support for power, water, roads and other industrial infrastructure. Designated clusters can also benefit from accelerated permitting, priority or exemptions in preliminary feasibility reviews, workforce training and technical assistance.
Gyeonggi said it will now begin work on a formal designation application and development plan in cooperation with the Gyeonggi Research Institute. The province plans to consult local governments, companies and research institutions while assessing infrastructure, workforce and funding requirements.
The move comes as Seoul intensifies efforts to expand semiconductor production nationwide. The government announced a 5 trillion won ($3.52 billion) semiconductor fund earlier this month for materials, components, equipment and fabless companies, alongside another 5 trillion won in trade finance for suppliers.
The government is also pursuing a broader Mega Special Zone framework intended to accelerate permits, environmental reviews and infrastructure development for semiconductor hubs.
For Gyeonggi, the regulatory change opens the door to compete formally for that national support as South Korea seeks to expand chip capacity amid rising demand from artificial intelligence and advanced computing.
