[PoliticsWHY] Semiconductor Talent Development Crucial for National Fate... Also Aiming for Regional Balanced Development

Expanding Talent Development from Semiconductors to Advanced Industries... Utilized as a Core Axis for Regional Decentralization
Strengthening Regional Universities in Line with Local 4th Industrial Revolution Hubs
Additional Regulatory Relaxations for Industry Promotion

President Yoon Suk-yeol (Photo by Yonhap News)

[Asia Economy Reporters Baek Kyunghwan and Geum Boryeong] The government is considering utilizing the cultivation of talent in advanced industries, including semiconductors, as a core axis of its decentralization policy. President Yoon Seok-yeol recently expressed a strong commitment to nurturing semiconductor talent, which is interpreted as a strategy to simultaneously secure the nation's future and revitalize local regions.

A ruling party official said on the 15th, "I understand that some parts of the Ministry of Education have raised concerns about the imbalance between local areas and the metropolitan area when emphasizing talent development in the metropolitan area," adding, "The recent decision to recruit semiconductor talent separately from both local areas and the metropolitan area reflects these concerns."

Last week, during a Cabinet meeting, President Yoon criticized the inability to increase quotas due to metropolitan area regulations by saying, "What is this talk about regulations?" thereby supporting the easing of metropolitan regulations. However, two days later, Prime Minister Han Duck-soo stated at the Government Policy Coordination Meeting, "The basic framework for talent cultivation will involve similar increases in both the metropolitan area and local regions." This was seen as an effort to quell concerns that the concentration in the metropolitan area might distance the new government's national agenda from regional balanced development.

The government believes that increasing quotas at universities in both the metropolitan area and local universities through semiconductor talent cultivation will also help activate the Fourth Industrial Revolution in the regions. For this reason, the scope of talent cultivation has been expanded to include "advanced industries including semiconductors."

This consideration stems from the fact that limiting the focus solely to semiconductors could further exacerbate the concentration in the metropolitan area, contrary to the purpose of nurturing local talent. Currently, the southern boundary of the semiconductor industry is considered to be Chungbuk, where SK Hynix’s factory is located. SK Hynix is planning to build a new factory in Yongin, Gyeonggi Province. From a corporate perspective, there is a practical concern that it is difficult to find talent outside the metropolitan area.

President Yoon has proposed pledges such as "Fostering Fourth Industrial Revolution Technologies" in major local hubs including Busan, Daegu, Gwangju, Daejeon, and Ulsan. This indicates a plan to advance the sophistication of regional key industries, with "talent cultivation" expected to be the starting point. A presidential office official also stated, "The guideline for (semiconductor talent cultivation) is not simply to produce many semiconductor experts and concentrate talent in major companies like Samsung and SK," adding, "Discussions to grow related industries together should be conducted by each ministry." A ruling party official said, "To establish Fourth Industrial Revolution complexes in local hubs, it is necessary to increase local talent."

However, there are voices that local governments must also play a certain role to revitalize local areas. A senior government official said, "It is now difficult to expect decentralization to be realized solely through central government support," adding, "If the central government sets the basic framework, each local government must independently develop local universities and establish regional hubs." Since simply increasing local university quotas could lead to graduates returning to the metropolitan area, efforts by local governments must accompany this.

Movements in the National Assembly have already begun. There is growing support for the view that if talent is increased in the metropolitan area, corresponding efforts to foster regional industries are also necessary. A People Power Party lawmaker representing Daegu said, "Instead of constantly trying to restrict, it is necessary to create conditions that allow large companies to enter each region so that balanced regional development can be achieved," explaining, "You have to plant good trees for the birds to come."

In particular, the People Power Party appears to be accelerating efforts by proposing a partial amendment to the "Special Act on Tax Reduction and Exemption" to significantly expand the tax credit rate for companies investing in semiconductor facilities. The proposal includes increasing the tax credit rate for large companies from the current 6% to 20%, for mid-sized companies from 8% to 25%, and for small and medium-sized enterprises from 16% to 30%. Representative lawmaker Bae Jun-young, who introduced the bill, said, "The government should support future growth industries such as semiconductors, and the National Assembly should ease regulations," adding, "Politics should focus on intensively supporting regions and sectors that need assistance and removing regulations."

This content was produced with the assistance of AI translation services.