The South Korean government announced a dual-track strategy to develop the nation into '5극 3특' (five poles, three special zones) super-regional areas, according to a parliamentary briefing submitted by the Ministry of Land, Infrastructure and Transport. The government will finalize detailed plans this year for enterprise-led smart cities in regional hub cities, combining industrial complexes, urban fusion special zones, and new towns, while beginning the second wave of public institution relocations from the capital region starting next year. The initiative aims to connect corporate investment in regional areas to local economic growth, with the Honam region semiconductor cluster location confirmed as Gwangju military airport for an 800 trillion won project involving four new fabs. The Presidential Sejong office is scheduled for move-in in August 2029, with National Assembly Sejong building construction starting the same year. This effort forms part of the government's broader administrative capital completion plan.
Government Plans Enterprise-Led Smart Cities in Regional Hubs
The Ministry of Land, Infrastructure and Transport will cultivate enterprise-led smart cities in regional hub cities that combine advanced industrial complexes, urban fusion special zones, and new towns. The ministry plans to finalize specific plans and customized locations by the end of this year after conducting corporate briefings and consultations with related agencies. These enterprise-led smart cities are designed as spatial projects connecting corporate regional investment to regional growth, serving as second headquarters for companies and advanced industry hubs enabling large-scale mass production, demonstration, and research simultaneously.
Gwangju Military Airport Confirmed for 800 Trillion Won Semiconductor Cluster
The government decided on Gwangju military airport as the location for the Honam region semiconductor cluster, one of three mega-projects, through a recent public-private joint meeting considering corporate requests. The project will establish four new semiconductor fabs with a total scale of 800 trillion won in the southwestern region. The government will develop this project as a leading model for enterprise-led smart cities and a new growth hub for the Honam region within the '5극 3특' framework. The government has begun follow-up procedures for the cluster development.
Government Reforms Development Procedures with Fast-Track System
The core of the enterprise-led smart city initiative involves a complete overhaul of the existing 'develop-first, sell-later' system to enable companies to invest 'where they want, in the way they want.' The public sector will support this by creating a stable long-term rental foundation. The government will introduce a fast-track system to development procedures, as timely investment is essential in global advanced industry competition. To reduce the typical period of over 10 years from industrial complex planning to factory operation, the government will proceed with permits, compensation, and design simultaneously. The government is reviewing preliminary feasibility study exemptions or expedited studies for public institution project operators, and will accelerate permits through advance consulting with the Ministry of Environment, Ministry of Agriculture, and other related agencies.
Second Wave Public Institution Relocations Begin Next Year
The Ministry of Land will prepare a second relocation plan including relocation institutions and regional allocation, and will begin immediate relocation of leading institutions starting next year through leased office buildings. The government is accelerating the relocation of national core facilities to complete the administrative capital. The 'Administrative Capital Construction Act' for relocating major institutions including the National Assembly and Presidential Office to Sejong City, and amendments to the 'Happy City Act' containing grounds for relocating the Ministry of Justice and Ministry of Gender Equality and Family, are currently pending in National Assembly subcommittees. The ministry is pursuing active consultations with the National Assembly for prompt submission.
Presidential Office Moves to Sejong in August 2029
The Presidential Sejong office targets move-in in August 2029. The National Assembly Sejong building will begin construction the same year. The Ministry of Land noted that during a public hearing held at the National Assembly Land Committee in May, a majority of experts provided opinions that 'compared to the past, conditions have changed and constitutional concerns have been resolved.'
FAQ
What is the scale of the Gwangju semiconductor cluster project?
The Gwangju military airport semiconductor cluster will establish four new semiconductor fabs with a total investment scale of 800 trillion won in the southwestern region. The government confirmed this location through a public-private joint meeting considering corporate requests.
When will the Presidential office move to Sejong City?
The Presidential Sejong office is scheduled for move-in in August 2029. The National Assembly Sejong building will begin construction the same year as part of the administrative capital completion plan.
How will the government speed up industrial complex development?
The government will introduce a fast-track system that proceeds with permits, compensation, and design simultaneously to reduce the typical 10-year period from industrial complex planning to factory operation. The government is also reviewing preliminary feasibility study exemptions and will accelerate permits through advance consulting with related agencies.
