Gyeonggi Province Pushes Ahead with Semiconductor Ecosystem Creation by Relaxing Non-Seoul Metropolitan Area Preferential Clauses
With multiple proposals from Gyeonggi Province reflected in the 'Enforcement Decree of the Special Act on Strengthening and Supporting the Semiconductor Industry' implemented on August 11, the feasibility of realizing a semiconductor ecosystem being pursued by Gyeonggi Province's Ninth Popularly Elected Administration has increased.
According to Gyeonggi Province on the 19th, six proposals suggested by the province during the legislative notice period for the 'Enforcement Decree of the Special Act on Strengthening and Supporting the Semiconductor Industry,' which ran from June 25, were either fully or partially reflected.
First, the deletion of the application requirement for semiconductor cluster establishment plans that stated 'must be located in an area outside the Seoul metropolitan area,' which was included in the draft enforcement decree that the Ministry of Trade, Industry and Energy consulted with relevant departments and local governments about in May this year, has been confirmed.
In terms of partial reflections, the clause 'non-Seoul metropolitan areas must be given preference' among the conditions for semiconductor cluster designation and support for businesses and institutions located in semiconductor clusters has been relaxed to 'should be given priority consideration.'
The clause regarding overseas talented workforce support requirements stating 'preferential measures can be provided to overseas talented personnel employed or conducting research at semiconductor clusters or business sites located in areas outside the Seoul metropolitan area' has also been relaxed from preferential measures to 'can be implemented on a priority basis.'
In matters related to the designation of semiconductor industry specialized personnel training institutions, the clause 'efforts should be made to prioritize designation of institutions located outside the Seoul metropolitan area' has been revised to 'efforts should be made to ensure designation is possible.' Regarding the installation and operational support of contract departments, the clause 'preferential measures can be provided for contract departments established by industrial education institutions located in areas outside the Seoul metropolitan area' has been relaxed to 'comprehensively consider the contribution to semiconductor industry workforce demand and supply, cooperative systems with semiconductor business operators, etc. However, priority support can be provided to contract departments of industrial education institutions located in areas outside the Seoul metropolitan area,' shifting from regional division to comprehensive consideration of corporate workforce demand, educational capacity, and employment linkage effects.
Gyeonggi Province evaluated that the enactment of this enforcement decree has minimized potential disadvantages that semiconductor businesses and institutions within the province could face in terms of institutional support. Beyond cluster designation application requirements, some clauses related to preferential treatment for non-Seoul metropolitan areas, which apply to semiconductor cluster designation and support, overseas talented workforce support, professional personnel training institution designation, and contract department installation and operation, were also relaxed during the enforcement decree enactment process.
Accordingly, the province plans to accelerate follow-up responses such as semiconductor cluster designation to connect the 'application qualification' secured through the enactment of this enforcement decree to substantial industrial competitiveness enhancement.
Once designated as a semiconductor cluster, businesses and institutions can receive various support and special provisions including support for industrial infrastructure development and operation, administrative and financial support for businesses and institutions located in the cluster, expedited processing of permits and approvals, priority selection and exemption from preliminary feasibility studies, and workforce training and technical support.
The province plans to launch policy research with the Gyeonggi Research Institute for 'semiconductor cluster designation application' to prepare basic plans and establishment plans for a cluster encompassing major semiconductor industry bases in Gyeonggi Province. During the research process, the province will gather opinions from cities and counties, businesses, and research institutions, and will specify details including the current status of the semiconductor industry and infrastructure, industrial agglomeration plans, workforce training and research infrastructure establishment measures, and financial resource procurement methods.
Meanwhile, to revise the initial draft of this enforcement decree, the province maintained close communication with the offices of National Assembly members from Gyeonggi Province including Kim Seung-won, Kim Tae-nyeon, Lee Eon-joo, Lee Sang-sik, Son Myung-su, and Bu Seung-chan, and explained Gyeonggi Province's position to the Ministry of Trade, Industry and Energy. Additionally, the province and 19 cities and counties jointly submitted opinions demanding improvements to the government, and repeatedly visited the Ministry of Trade, Industry and Energy to continuously explain the problems that could arise if the Seoul metropolitan area were excluded from application eligibility and the necessity for system improvements.
Governor Choo Mi-ae also swiftly organized the 'Semiconductor Super-Gap Strategy Special Committee' after her election in June and maintained all-around responses involving the province, cities and counties, National Assembly members, and the Transition Committee (Governor-elect Choo Mi-ae Gyeonggi Province Transition Committee), contributing to efforts to improve the enforcement decree's requirement excluding the Seoul metropolitan area.
Hyun Byung-cheon, Director of the Future Growth Industry Bureau of Gyeonggi Province, said, "The greatest achievement in the enforcement decree enactment process was resolving the institutional hurdle that could have excluded Gyeonggi Province from semiconductor cluster designation application eligibility," and added, "We will not stop at securing application qualification but will prepare a semiconductor cluster establishment plan that can enhance the competitiveness of Gyeonggi Province's semiconductor industry by fully reflecting the opinions of cities and counties, businesses, and research institutions."