[Semiconductors in Yongin] "Can't Buy Even If You Have Money" Listings Disappear... Construction Companies with Payment Guarantees Hit Jackpot

Land Prices in Namsa and Idong-eup Have Increased 2-3 Times in Recent Years
Properties for Auction (Land) Near Planned Sites Disappear from Listings
Development Expected to Accelerate in Idong District and Namsa Complex New Town

The city of Yongin, embracing semiconductors, has not just stirred but soared to the skies. On the 15th, the government announced the selection of Namsa-eup and Idong-eup areas in Cheoin-gu, Yongin City as the site for the 'Advanced System Semiconductor Cluster' national industrial complex (hereafter referred to as the national industrial complex). Following this announcement, the surrounding lands that were on the market disappeared without a trace. Even if buyers want to pay more than the market price, they cannot purchase them.

The real estate market slump feels like a story from another world. Developers who were worried after missing the sales period while promoting housing projects in Idong-eup and construction companies that provided payment guarantees have suddenly hit the jackpot overnight.

Dozens of phone inquiries daily, no listings, quiet transactions

A panoramic view of Idong-eup area, Cheoin-gu, Yongin-si, selected as the site for the semiconductor national industrial complex.
[Photo by Chawan Yong]

On the 21st, the Namsa-eup and Idong-eup areas in Cheoin-gu, Yongin City appeared quiet on the surface. Instead, banners demanding the withdrawal of the national industrial complex development, put up by local residents, were noticeable along various roads. The expressions of the local residents were also somber. In small groups, conversations were dominated by the national industrial complex development, with more concern than expectation. One resident met on-site said, "Where are we supposed to live after leaving the place we've lived all our lives?" expressing frustration.

Visiting 3 to 4 certified real estate agencies around the national industrial complex site, the stories were similar. They said they receive dozens of phone inquiries daily and many visitors come in person, but there are no listings available.

A representative from B Real Estate Agency said, "Due to SK Hynix's selection of the Yongin cluster site (around Wonsam-myeon, Cheoin-gu) in 2019, land prices in Namsa-eup and Idong-eup rose about 2 to 3 times until the first half of 2022," adding, "However, since last year, due to the real estate slump, prices showed a downward trend, but now the atmosphere has completely changed." He continued, "Landowners around the planned site who had been contacting us daily to sell their land immediately withdrew their listings after the government announcement," and hinted, "Currently, there are absolutely no listings for land around the planned site."

According to the land and building platform ValueMap, a land parcel (176 pyeong) traded in Idong-eup in 2022 had a sale price of 2.42 million KRW per 3.3㎡, about three times higher than the 800,000 KRW price at the time of the 2006 transaction. Currently, there are no lands listed for sale. Also, twelve land auction cases appeared in this area in 2022, but all auctions have been canceled now. It is highly likely that these were either traded directly or the owners settled debts and withdrew the properties.

Full of development prospects, previously stalled projects also 'stirring'

The announcement of Yongin's semiconductor national industrial complex is injecting energy into various development projects in the Yongin area that had been stagnant. According to a local real estate development official, the Idong (Songjeon) district urban development project (with 1,360 households) near the Idong-eup administrative welfare center had been sluggish due to the real estate slump, but the national industrial complex announcement has created a positive atmosphere.

In fact, the Idong district urban development project had been drifting for over a decade since the 2008 financial crisis due to bankruptcies and defaults of construction companies and financial institutions. After overcoming land acquisition issues in 2021, GS Construction planned to proceed with the project by providing payment guarantees, but the schedule was disrupted due to the real estate market downturn starting last year.

However, with the national industrial complex development, the atmosphere has changed, and since the project's feasibility is now secured, it can proceed with more flexibility. Additionally, a housing development project for about 1,000 households is underway on the opposite site of the Idong district urban development project, which is also expected to move forward actively following the national industrial complex announcement. A representative from C Real Estate Agency said, "Once the national industrial complex development progresses in earnest, the Idong district area will serve as a residential hinterland for the national industrial complex."

Above the Yongin Technovalley advanced industrial complex located north of the national industrial complex, preparations are underway for the establishment of the 2nd Yongin Technovalley general industrial complex (Deokseong 2nd industrial complex), and there are predictions that factories and logistics warehouses established in the national industrial complex site will relocate here.

Additionally, although not included in the national industrial complex site, the Namsa Complex New Town (6.5 million㎡) development, progressing in the western part of Namsa-eup (around Tongsam-ri, Bongmyeong-ri, Bongmu-ri), has also received a green light for full-scale development.

This area had been promoted as a public development housing site since 2008 but was stalled for a long time due to liquidity deterioration caused by the 2009 global financial crisis. Currently, Yongin City is promoting the Namsa Complex New Town project under the '2035 Yongin Urban Master Plan.'

Meanwhile, the government plans to establish the world's largest system semiconductor cluster (industrial complex) covering 7.1 million㎡ in Namsa-eup and Idong-eup, Cheoin-gu, Yongin City, Gyeonggi Province. Samsung Electronics will build five state-of-the-art foundry (semiconductor contract manufacturing) plants in the Yongin cluster, investing a total of 300 trillion KRW. Earlier, SK Hynix had quietly proceeded with building an advanced memory semiconductor cluster covering 4.15 million㎡ in Wonsam-myeon, Cheoin-gu, Yongin City, with an expected investment of 121.8 trillion KRW. If these plans proceed as scheduled, Yongin City will transform into a city hosting the world's largest national advanced semiconductor industrial complex by 2042.

Yongin = Reporter Cha Wanyong