MOTIE Minister Unaware of $41 Million in Gwangju Air Base Projects, Raising Risks for Honam Chip Cluster

A view of Gwangju Airport  Controversy is mounting over the feasibility of the government’s plan to develop a semiconductor cluster in the Honam region, as U.S. military facility construction projects worth approximately 58 billion won ($41.81 million) are underway at Gwangju Air Base, which the government plans to clear for the project by 2028. At a comprehensive audit of the Ministry of Trade, Industry and Energy (MOTIE) by the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee on Oct. 22, Rep. Seo Ji-young of the People Power Party asked MOTIE Minister Kim Jung-kwan whether he was aware of the U.S. military facility construction at Gwangju Air Base. Kim replied, “I haven’t seen that information and failed to keep track of it,” highlighting gaps in project oversight. Seo strongly criticized the construction of large-scale aviation fuel facilities and other infrastructure ahead of the planned relocation by September 2028, calling it a waste of public funds and a risk to the project. According to the 2025 annual report of the U.S. Army Corps of Engineers’ Far East District, three facility projects totaling approximately 58.2 billion won ($43.96 million) are underway at Gwangju Air Base this year. They include an aviation fuel supply facility worth approximately 53.1 billion won, renovations to an engineering storage facility costing about 3.6 billion won, and repairs to a steel water tank worth approximately 1.3 billion won. The largest project involves modifying existing fuel tanks and installing new fueling control facilities and fuel-testing laboratories. It is being carried out through an in-kind contribution arrangement under which South Korea bears the costs. The government plans to temporarily redistribute military operations from Gwangju Air Base to locations including Yecheon, Seosan and Chungju by mid-2028 as part of its efforts to develop the semiconductor cluster. However, the ongoing large-scale construction at the base, apparently intended to support long-term use, has raised questions about whether the government’s relocation timeline is realistic. Seo argued that the Ministry of National Defense could not be unaware of the projects given that South Korea is footing the bill, and criticized what she described as the MOTIE minister’s lack of attention to the issue, despite the ministry’s role in coordinating the broader project. Relocating the military air base involves more than securing land; it requires complex security consultations between South Korea and the United States. Gwangju is one of the allies’ collocated operating bases (COBs), where U.S. air assets could be deployed in the event of a contingency. Reclaiming facilities made available for U.S. military use requires U.S. consent on the provision of replacement facilities and adjustments to operational functions. Washington is currently prioritizing a comprehensive agreement covering all five COBs, including Gwangju, while the South Korean government is seeking to negotiate separately on Gwangju to expedite the process, highlighting a clear difference in approach. Political parties are also divided, with the ruling emphasizing speed and the opposition party warning of potential security gaps. The Democratic Party of Korea argues that the relocation should be accelerated, even if relevant laws must be amended, given that the national strategic project is expected to attract 800 trillion won in investment. The People Power Party, by contrast, has warned against rushing the process without sufficient deliberation, citing opposition from residents in potential relocation areas such as Seosan and the risk of reduced military operational capabilities in an emergency. At the audit, Kim said, “The Ministry of National Defense is responsible for handling the relocation of U.S. military facilities and consulting with U.S. Forces Korea, and I understand that the process is proceeding without disruption.” He added that he would separately look into the construction projects raised during the hearing. With MOTIE estimating the cost of Phase 1 infrastructure development alone at 5.4 trillion won, calculating the project’s overall cost — including air base relocation expenses and potential sunk costs associated with demolishing U.S. military facilities — is expected to become a key issue. President Lee Jae-myung has also instructed officials to bring forward the temporary relocation of operations from Gwangju Air Base as much as possible to accelerate the project. He called for a review of the current target of mid-2028 and said the schedule should be advanced even if relevant laws, regulations and guidelines need to be revised. However, despite the government’s determination to accelerate the process, unresolved issues — including ongoing construction at the base and consultations between South Korea and the United States — continue to cast doubt on whether the relocation can proceed as planned.