Power Grid Failures Threaten South Korea's Honam Semiconductor Hub
High failure rates for underground power projects cast doubt on the government's 2028 timeline for a new chip cluster in the southwest.
The South Korean government is establishing a semiconductor cluster in the Honam region to decentralize the nation's chip industry. However, critical infrastructure gaps and a history of construction delays now threaten the project's viability.
Central to the plan is the development of a hub at the Gwangju military airport site. To power the facility, the government is reviewing the undergrounding of approximately 20-25 km of transmission lines along Local Road No. 49 and the Hwangryonggang River, with a target to supply power by late 2028. While the government aims for a rapid rollout, historical data suggests a different outcome.
The Infrastructure Gap
Data submitted by the Korea Electric Power Corporation (KEPCO) to lawmaker Lee Chul-gyu reveals a systemic pattern of failure in similar projects. According to the data, 146 out of 242 underground transmission line projects—roughly 60.3%—faced significant delays. On average, these projects missed their targets by 50 months, or more than four years.
This trend creates a precarious foundation for the Honam cluster. If the current power supply project follows the historical average, the 2028 target could slip well into the next decade, potentially pushing the cluster's operational date past 2030.
Strategic Decentralization
South Korea is aggressively expanding its semiconductor footprint to maintain global competitiveness. While the Yongin-Pyeongtaek region serves as the primary industrial hub, the Honam project is intended as a "second axis." By shifting development to the southwest, the government hopes to boost regional economic growth and reduce industrial concentration in the north.
However, the reliance on undergrounding—often chosen to avoid local opposition to overhead towers—introduces high execution risk. Without a proven track record of timely completion, the strategic goal of chip sovereignty may be undermined by basic utility failures.
The Path Forward
Critics argue that the government cannot rely on optimistic projections given the KEPCO data. Lawmaker Lee Chul-gyu stated that because most undergrounding projects face delays, the Honam cluster’s timeline should not depend solely on this method. He urged the government to disclose specific construction phases, permit schedules, feasibility assessments, and exact routes to the public to ensure accountability.
Observers are now watching whether the government will diversify its power delivery strategy or provide a more concrete roadmap to mitigate the risk of a multi-year delay. The success of the Honam cluster depends not just on silicon and subsidies, but on the government's ability to deliver the electricity required to power them.