The Ministry of Environment of South Korea announced the implementation of the “Green Cluster” in Gumi City from 2023 to 2027. “Gumi Green Cluster” is an attempt to create a circular economy by recycling the silicon waste from the semiconductor industries in the Gumi national industrial complex and reusing it as the anode material of secondary batteries. The project contributes to reducing waste to prevent environmental pollution and increasing industrial profit to boost the local economy (Wontae Lee, personal communication, March 8, 2024).This research analyzes the crucial factors that contribute to the Gumi Green cluster from a holistic perspective. The study uses the causal loop diagram from system thinking to show the economic and social factors that contributed to the downfall of the Gumi national industrial complex and industrial agglomeration. The ecological lens adds to the environmental impact of reducing industrial silicon waste. Critical policy analysis questions the reality of the green cluster project by introducing the concept ecological modernization. This research concludes that there are critical holistic factors that contribute to the green cluster but strong ecological modernization is crucial to harmonize the economic and ecological goals.