[Interview] Lee Sang-il, Mayor of Yongin, "Semiconductor Belt Will Bring Ondol Effect to Yongin's Economy"

"Yongin is the Optimal Site for Semiconductors... Meticulously Prepared"
"Development of Satellite Cities and Expansion of Transportation Networks Needed"

"When we created the 'New Growth Strategy Bureau' in a local government, some people found it puzzling. However, we were confident that Yongin was the optimal location for building a large-scale semiconductor belt."

Since taking office last year, Lee Sang-il, Mayor of Yongin Special City in Gyeonggi Province, established the 'New Growth Strategy Bureau' during the organizational restructuring process. It is a large-scale organization consisting of the New Growth Strategy Division, Semiconductor Division 1, Semiconductor Division 2, and the 4th Industrial Convergence Division. This organization embodies the mayor's vision to build a genuine semiconductor hub in Yongin that encompasses Samsung Electronics, SK Hynix, as well as materials, parts, and equipment (SoBuJang).

In just over a year since his inauguration, Mayor Lee's determination has borne fruit. Not only was the 'Yongin Semiconductor Cluster' in Wonsam-myeon, Cheoin-gu, established, but in March, a 2.15 million pyeong (approx. 7.1 million sqm) 'Advanced National Industrial Complex for System Semiconductors' was designated in Idong and Namsa-eup, Cheoin-gu. Last month, these two industrial complexes were designated by the government as 'Advanced National Industrial Specialized Complexes.'

During the successive designation processes, the mayor's extensive network and proactive attraction efforts were highly regarded both inside and outside the organization. We met with him, a former journalist turned lawmaker and now an administrator, to hear about the background and plans for attracting the Yongin semiconductor belt.

Yongin: A Mega Semiconductor Cluster Hosting Hundreds of SoBuJang Companies

-When you took office last year, you declared your intention to transform Yongin from a 'follower city' to a 'leading city.' With the designation of the Idong-Namsa Advanced System Semiconductor National Industrial Complex and the Wonsam Semiconductor Cluster as advanced national industrial specialized complexes last month, you are being praised for realizing your biggest campaign promise within just one year.

▲The ultimate goal is to establish Yongin as a leading advanced science city in South Korea, with a prestigious status as a special city offering many quality jobs. The first task was to 'leap forward as the world's best semiconductor city,' and the core was the creation of an 'L-shaped semiconductor belt.'

-I understand you put a lot of effort into attracting Samsung Electronics' system semiconductor national complex. Could you share some behind-the-scenes details?

▲Since September last year, I have been moving swiftly and confidentially between Samsung, the Presidential Office, and the government. I persuaded Samsung officials by emphasizing that as the 4th Industrial Revolution accelerates, Samsung must focus on foundry operations, and considering various risks, domestic investment rather than overseas investment is essential. I also stressed that Yongin is the ideal place for investment, given the symbolic significance of the existing Samsung Giheung Campus as the birthplace of Korea's semiconductor industry.

-Both Samsung Electronics and SK Hynix have now settled in Yongin. It seems that related materials, parts, and equipment (SoBuJang) companies will also follow. How large is this scale?

▲The specialized complexes include the Cheoin Wonsam 'Yongin Semiconductor Cluster,' Giheung Nongseo 'Samsung Electronics Future Research Complex,' and Cheoin Namsa-Idong 'Yongin Advanced System Semiconductor National Complex.' The combined area of these three sites is 12.44 million square meters (approximately 3.76 million pyeong). This will create a world-class mega cluster. Around 150 SoBuJang companies will enter the Idong-Namsa system semiconductor national complex, and about 50 companies will settle in the Wonsam semiconductor cluster. It has also been virtually confirmed that related companies will move into the Gyeonggi Yongin Platform City.

Ondol Effect to Warm the Entire Urban Economy

-The economic impact of the semiconductor belt on Yongin City seems significant.

▲We plan to share development profits with companies to expand infrastructure such as living and convenience facilities, sports and cultural facilities, and roads for citizens. Not only will quality jobs increase, but consumption will also rise. As commercial districts expand, the city itself will naturally grow. This is the 'Ondol effect'?the principle that when you stoke the fire in the lower part (semiconductors), the upper part (the entire urban economy) warms up.

-The Yongin Semiconductor Cluster in Wonsam-myeon faced considerable difficulties with water and electricity supply during its development. It seems this should serve as a lesson for the Idong-Namsa system semiconductor national complex development.

▲The Yongin Semiconductor Cluster is a general industrial complex, so the city had to take the lead in finding solutions for water, power, and land compensation. However, the system semiconductor national complex is government-led, so we expect it to be somewhat easier. The city will actively share its experiences from the Yongin Semiconductor Cluster project with the government to minimize trial and error. In particular, the government has already disclosed rough plans and promised active support regarding water and power. Yongin City also intends to provide administrative support for various permits and approvals. Regarding land compensation, I personally met with Lee Han-jun, President of Korea Land and Housing Corporation (LH), to request assistance.

Systematic Development of a Hinterland City and Urgent Expansion of Metropolitan Rail Network

-From a corporate perspective, residential, educational, and medical conditions for employees are important. Cheoin-gu still seems to need improvements in these areas.

▲I agree. It is expected that more than 60,000 workers will reside in the system semiconductor national complex and the Yongin semiconductor cluster combined. This is why the development of a hinterland city is necessary. It is not simply a matter of housing supply plans. Through proactive urban planning, we need to create a systematic city where housing, environment, education, culture, and sports facilities are harmonized so that the families of company employees can live stable lives. The day after the government announced the national industrial complex, I met with the LH president to discuss the construction of the hinterland city. We will continue detailed discussions with the government, LH, and others.

-There is virtually no railway or subway network around the semiconductor belt. What measures are being taken to expand the metropolitan transportation network?

▲For the southern Gyeonggi region centered on Yongin to have global semiconductor competitiveness, expanding road and rail networks is essential. We have jointly commissioned a feasibility study with Gwangju City for the 40.2 km extension of the Gyeonggang Line from Samdong Station in Gwangju to Namsa in Yongin. Recently, a feasibility study began for a new railway line branching from Dongcheon Station on the Shinbundang Line, passing through Jukjeon, Mabuk, Dongbaek, and connecting to Namsa. The city has requested that the Dongbaek?Sinbong line, which connects Dongbaek Station on the light rail to Eonnam?Yongin (GTX) and Sinbong, be included in the urban rail network construction plan.

-As seen in foreign cases, the most important factor for companies in site selection is the supply of quality human resources. What are the plans for nurturing talent to support the semiconductor belt?

▲The city is also promoting semiconductor specialist training. To this end, a Semiconductor Talent Development Team was newly established within the New Growth Strategy Bureau. The key is public-private cooperation. First, we decided to collaborate with Myongji University, selected for the Ministry of Education's '2023 Semiconductor Specialized University Support Project,' to establish a foundation for semiconductor talent development. We also agreed to work with Kyung Hee University, which was selected for the Ministry of SMEs and Startups' public project and can now open semiconductor-related departments, to cultivate convergence talents needed by companies. Together with the Gyeonggi Provincial Office of Education, we are pushing to establish the 'Yongin Semiconductor Meister High School (tentative name)' aiming to open in 2026. We plan to establish the school as a Gyeonggi-style specialized high school and then apply for Meister High School designation from the Ministry of Education. The school will be located on the site of the Baegam High School playground in Baegam-myeon, Cheoin-gu. Superintendent Lim Tae-hee of the Gyeonggi Provincial Office of Education and Lee Ju-ho, Deputy Prime Minister and Minister of Education, have also promised active cooperation.

Semiconductor Site Selection Should Be Viewed from a Global Competition Perspective, Not Just Capital Region vs. Provinces

-There are concerns that the semiconductor industry is too concentrated in the capital region during the designation process of the specialized complexes. What is your position on this?

▲This should not be viewed as a regional issue but from the perspective of global competition. Semiconductor technology and production capacity are so crucial that they determine the nation's future success. Since Samsung Electronics, which has global competitiveness, is already located in Yongin Giheung, Hwaseong, and Pyeongtaek, and SK Hynix has settled in Yongin Wonsam and Icheon forming a mega cluster, the optimal site to achieve synergy was inevitably Idong-Namsa in Yongin. The semiconductor industry requires workforce supply and industrial agglomeration, that is, ecosystem formation. It is difficult to completely restructure the industry to be solely in the provinces.

-You are known as a mayor who works on the ground within city hall and personally handles most government-related tasks. Some say citizens' expectations have become very high.

▲I have worked very hard over the past year since taking office. I received an intravenous drip for the first time since my school days. This is already the second time since becoming mayor. It is very exhausting. However, since the citizens entrusted me with this important responsibility, I want to work even more sincerely and show many achievements. The fact that citizens' expectations have risen is actually a very pleasant evaluation. The vision of Yongin City in the 8th local government is 'Future Made Together, Yongin Renaissance.' It is a vision I proposed myself, expressing the will to brighten and pioneer Yongin's future together with the citizens. I will do my best to fulfill the pledges I have presented during the remainder of my term.

-Like other local governments, Yongin City seems to face financial constraints in promoting various projects. Do you have alternatives?

▲Budget is always a concern. Although the city budget has exceeded 3 trillion won for the first time, it is still insufficient to operate a special city with a population exceeding one million. We are brainstorming with staff to reduce unnecessary expenses and allocate budgets to areas that citizens can directly feel and that have significant effects. I will do my best without losing my initial resolve during the remainder of my term so that citizens can evaluate the city administration as moving in a good direction.