Honam Semiconductor Industrial Complex faces cost and favoritism concerns

Representative Kang Dae-sik of the People Power Party has raised concerns regarding potential preferential treatment for the Honam Semiconductor National Industrial Complex, located on the former site of the Gwangju military airport. Analysis of data from the Ministry of National Defense and the Korea Land and Housing Corporation (LH) suggests the total project cost for the complex is approximately 9 trillion won, comprising a 5 trillion won acquisition cost for the site and 4 trillion won in development costs.

The estimated production cost per pyeong is approximately 5.14 million won. This figure is significantly higher than other regional industrial lands, being roughly double the price of the Gwangju Advanced Complex 3 (2.41 million won per pyeong) and over six times the price of the Bitgreen National Industrial Complex (770,000 won per pyeong).

Concerns have been raised that if the government or LH lowers the actual sale price to between 3 million and 4 million won per pyeong to reduce the burden on companies, the resulting deficit—estimated between 1.8 trillion and 3.4 trillion won—might be covered by national taxes or local government subsidies. Additionally, the rapid pace of the project, with LH issuing design service orders just days after the site was designated, has drawn comparisons to other national industrial complexes that have faced years of delays due to insufficient demand.