President Chun Doo-hwan officially declared in 1981, "The government will focus on fostering the semiconductor industry," heralding a national all-out effort. [Photo=Yonhap News]The fourth session of 'The Fifth Republic: The Chun Doo-hwan Era,' which looks back at the nascent stage of the IT industry that became a decisive turning point in South Korea's economic development, took place on the 21st at 2 PM at a location in Seoul.

Hosted by the Free Korea Patriotic Group (Representative Oh Sang-jong), the lecture was held under the theme 'The Untold Story of Building the IT Industry that Sustains Korea,' with detailed explanations from Senior Reporter Kim Yong-sam, a former editor of Wolgan Chosun.

July 15, 1981: The 'True' Starting Point of the Korean Semiconductor Industry

Today, as South Korea dominates the global semiconductor market, the success story often brings to mind entrepreneurial spirit first. However, behind it was a critical process supported by strong national will and extraordinary administrative assistance.

The lecture was conducted on the theme 'The Untold Story of Building the IT Industry that Sustains Korea' by Senior Reporter Kim Yong-sam, former editor of Wolgan Chosun. [Photo=Free Korea Patriotic Group]

According to recently disclosed documents, while many consider Samsung's 'Tokyo Declaration' as the starting point of the semiconductor industry, President Chun Doo-hwan approved the 'Semiconductor Industry Development Plan' on July 15, 1981, prior to that. This plan contained precise analysis and countermeasures regarding the necessity of semiconductor development, manufacturing processes, and current status and issues.

On September 5 of the same year, at the monthly trade promotion meeting held at the Gumi Export Industrial Complex, the President officially declared to the outside world, "The government will focus on fostering the semiconductor industry," heralding a national all-out effort.

At the time, semiconductors were an area that received pessimistic forecasts from domestic experts and foreign research institutions due to lack of technology, a narrow domestic market, and massive investment capital issues. In response, at President Chun's directive, Minister of Communications Choi Soon-dal took the lead in persuading the chairmen of large corporations.

Minister Choi's conditional recommendation, "You must participate in the semiconductor business to supply switching equipment to the government," was effective, leading the chairmen of Samsung, Goldstar (LG), Hyundai, and Daewoo groups to begin studies for participation in the semiconductor business. The government's forceful push for corporate participation turned into a historical achievement.

President Chun's Decision Transcended Laws and Regulations

The construction of semiconductor factories faced numerous obstacles. In particular, strong regulations like the 'Capital Region Rearrangement Law' hindered progress.

According to the law promulgated in 1983, new factory construction within the Giheung complex was impossible. If the construction of the second line had been abandoned at that time, not only would the production of 256K DRAM have been impossible, but Samsung's semiconductor business itself might not have materialized. However, with President Chun's direct intervention and approval, factory construction became possible.

The Hyundai Electronics (now Hynix) factory was in an even more difficult situation than Samsung because it included prime agricultural land and pasture in the middle of Icheon. However, this too was made possible by President Chun's decision, which, after passing through a cabinet meeting, granted a groundbreaking change of land use on September 17, 1983.

At the cabinet meeting at the time, President Chun Doo-hwan strongly instructed all cabinet members twice, saying, "Our entry into developed countries depends on how quickly we develop semiconductor technology," and urged their active cooperation in this project. Jung Hong-sik, then an administrative officer in the Presidential Secretariat for Economic Affairs, testified that "The Semiconductor Industry Development Plan was the result of work undertaken based on the President's directive to form a task force."

With the strong drive of the government and the challenge of the corporations combined, Samsung succeeded in developing 64K DRAM in November 1983, just 10 months after the Tokyo Declaration (March 1983). Ten years later, in 1994, South Korea achieved the great feat of becoming the world's number one in DRAM market share.

A commemorative photo after the lecture. [Photo=Dr. Oi]

A representative of the Free Korea Patriotic Group expressed their thoughts, stating, "It was a time to reflect on the IT industry, which became a decisive turning point in South Korea's economic development, and the decisions of President Chun Doo-hwan as its foundation, through the firsthand account of Senior Reporter Kim Yong-sam. At the time, Korea lacked both technology and capital. We learned that without President Chun Doo-hwan easing regulations, pouring in funds, and encouraging large corporations, the prosperity we enjoy today would not have existed."

Reporter Lim Yo-hee