Jeonnam-Gwangju is planning a three-zone industrial belt that would connect semiconductor and AI manufacturing with materials production and renewable power. The strategy follows the region’s administrative merger on July 1 and aims to create more of the supply chain within the region. Its success will depend on investment in specialist facilities, industrial suppliers and the electricity grid.
The proposed belt assigns a distinct role to each area: Gwangju would focus on advanced manufacturing, the east on materials and parts, and the west on renewable energy supply. The city says this could reduce the region’s dependence on South Korea’s capital region.
Key Conditions for Success:
- A focused role for Gwangju: The city plans to link AI design, semiconductor testing and packaging, future vehicle parts, and energy data. Developing specialist capabilities in chips for AI, power systems and vehicles will require facilities and skilled workers.
- Support for eastern suppliers: Yeosu and Gwangyang Bay already have strengths in petrochemicals, steel and ports. Materials and parts companies would need support to move into products for semiconductor production, batteries, robotics and aerospace.
- Renewable power in the west: Offshore wind, solar power and industrial sites designed to use renewable electricity are central to the plan. Projects under discussion include an RE100 pilot industrial complex near Haenam, wind farms and local microgrids.
- Enough grid capacity: New generation will benefit factories only if electricity can reach them reliably. Transmission investment is therefore as important as building renewable energy projects.
- Coordination and delivery: The city intends to seek support from the national government and parliament. Several elements remain proposals, and the three zones will need to develop in step for the belt to work as intended.
For Europe, the plan offers a useful example of regional industrial planning: chip production, its suppliers and renewable power are being considered together. Whether that approach delivers results in Jeonnam-Gwangju will become clearer as facilities are built, suppliers expand and grid connections are secured.