[Advanced Industry Promotion] The Key to Developing National Industrial Complexes is 'Speed'... Yongin Cluster Investment 300 Trillion+ Alpha

National Advanced Industry Development Strategy and National Industrial Complex Plan Announced
World's Largest Semiconductor Cluster to be Established in Yongin
Major Companies' Investment Scale Reaches 300 Trillion Won
Intergovernmental Support Team Formed for Rapid Industrial Complex Development

The government will create 15 national advanced industrial belts, including Gyeonggi Yongin, which will become the world's largest semiconductor cluster. This is the largest scale ever by any government, aiming to rapidly develop six major advanced industries by region to enhance national competitiveness. In the Yongin industrial complex, private investment worth 300 trillion won will be made. This amount only accounts for the expected investment from major companies, and the investment scale could increase further if fabless (semiconductor foundry) and materials, parts, and equipment companies also establish themselves there.

The Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport held a briefing at the Government Complex Seoul on the afternoon of the 15th. The briefing was attended by Lee Chang-yang, Minister of Trade, Industry and Energy; Won Hee-ryong, Minister of Land, Infrastructure and Transport; Joo Young-joon, Director General of Industrial Policy at the Ministry of Trade, Industry and Energy; and Moon Sung-yo, Director General of Land and Urban Policy at the Ministry of Land, Infrastructure and Transport, who explained the national advanced industry promotion strategy and national industrial complex development plans.

[Image source=Yonhap News]

During the briefing, the Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport consistently emphasized the importance of fostering national advanced industries. Since major countries are competing for hegemony centered on advanced industries such as semiconductors, the government and private sector must join forces to respond. To this end, the government has designated six core industries: ▲semiconductors ▲displays ▲secondary batteries ▲bio ▲future vehicles ▲robots, and plans to concentrate private-led investments totaling 550 trillion won by 2026. Additionally, 15 advanced national industrial complexes covering a total area of 40.76 million square meters (approximately 12 million pyeong) will be established.

In particular, to secure competitiveness in the semiconductor sector, where global hegemony competition is prominent, a mega cluster of 7.1 million square meters (approximately 2.15 million pyeong) will be created in Namsa-eup, Yongin, Gyeonggi Province, making it the world's largest. The plan is to encompass the entire semiconductor ecosystem, focusing on system (non-memory) semiconductors, along with memory, foundry (semiconductor foundry), and materials, parts, and equipment. To this end, five advanced semiconductor manufacturing fabs will be newly established, and up to 150 excellent domestic and foreign materials, parts, equipment, and fabless companies will be attracted.

Minister Lee Chang-yang explained, "The biggest advantage of the cluster we are creating this time is building an ecosystem where companies are concentrated. Since anchor (major) companies and materials, parts, and equipment companies are located geographically close, information flow is free, and foreign companies can also enter the cluster, enabling the integration of overseas technologies."

The government will lead large-scale new private investments, including from Samsung Electronics, to build the cluster. Investments totaling 300 trillion won are expected by 2042. This investment amount only accounts for the major companies' investments and does not include investments from 150 materials, parts, equipment, and fabless companies. Director General Joo Young-joon explained, "The investment amount from leading companies includes costs for multiple industrial complexes and industrial complex operation facilities besides fabs. The investments from the 150 companies entering the cluster are separate."

The Ministry of Land, Infrastructure and Transport is pushing for speed in the development of national industrial complexes due to the urgency of fostering advanced industries. To facilitate rapid decision-making, a pan-government advanced industrial belt promotion support group has been formed, involving not only relevant government ministries but also local governments and related companies. Unlike in the past, when greenbelt removal and other tasks were carried out after deciding on the industrial complex, this time the greenbelt removal review was completed during the industrial complex review process.

Minister Won Hee-ryong said, "We aim to reduce the industrial complex development period, which used to take about 10 years, to about one-third, targeting an average of 7 years. For locations where companies are already prepared, we will expedite procedures so that construction can begin by the end of 2026." He also explained that during the selection of industrial complex candidate sites, "we received letters of intent from companies averaging over 200% compared to the expected number of companies," and "for all 15 industrial complexes, anchor companies have almost confirmed their investment intentions."

Regarding concerns about the concentration of investment in the metropolitan area due to the larger investment scale of the Yongin industrial complex compared to other regions, the Ministry of Land, Infrastructure and Transport stated that it was an unavoidable choice. Director General Moon Sung-yo said, "Our position remains to prioritize balanced development when designating national industrial complexes," but added, "Due to the intensifying hegemony competition in the semiconductor sector, it was unavoidable to make an exception this time."

The government will pursue six core tasks to foster national advanced industries. Specifically, these are ▲securing a super-gap in technological capabilities ▲training innovative talent ▲regional specialized clusters ▲building a robust ecosystem ▲becoming a special investment country ▲strengthening trade capabilities. To secure a super-gap in technological capabilities, the government will introduce a 'Korean-style IMEC' (IMEC is the world's largest semiconductor research institute located in Belgium). Starting with semiconductors, the IMEC model will be concretized in advanced fields such as secondary batteries in the future.