450 Billion KRW Worth of Resources Invested in Yongin Area for SK Hynix Fab Construction

Priority Allocation to Local Companies in Construction, Materials, and Equipment... Residents Given Hiring Preference
3 Million Workers Deployed Over 2 Years "Also Helps Revitalize Local Economy"

With the construction of the production line (Fab) within SK Hynix's Yongin Semiconductor Cluster, which will break ground next year, 450 billion KRW worth of local resources will be utilized.

Yongin City, Gyeonggi Province, recently announced on the 12th that SK Hynix has submitted a plan to the city to utilize local resources worth 450 billion KRW in relation to the construction of the first fab in the Yongin Semiconductor Cluster, scheduled to begin in March next year.

A panoramic view of the Yongin Semiconductor Cluster where SK Hynix will begin construction of its first production line (Fab) in March next year. SK Hynix plans to utilize local resources worth 450 billion KRW during the Fab construction process. Provided by Yongin City

This plan is a follow-up measure to the memorandum of understanding signed between the city and SK Hynix last February. At that time, the city agreed to support administrative procedures such as building permits to ensure the smooth groundbreaking of the fab, while SK Hynix committed to prioritizing the use of materials and equipment from local companies and hiring local personnel during the construction process. Since then, the city has been discussing with the construction company, SK Eco Plant, ways to utilize local resources after the groundbreaking in March next year.

SK has decided to prioritize local companies for basic construction materials such as ready-mixed concrete, aggregates, and asphalt, excluding areas requiring highly specialized technology like semiconductor process facility construction. Opportunities will also be given first to local companies for services such as parking lot site development, waste disposal, and permits-related services.

Local companies will also be prioritized for the procurement of basic materials and equipment such as rebar, finishing materials, and mechanical and electrical facilities. However, to address issues arising from price differences in materials, the city plans to create and distribute guidelines, including the 'Ordinance on Supporting the Revitalization of the Local Construction Industry,' and apply them on-site.

SK will comprehensively evaluate factors such as sales, construction capability assessment amounts, and financial soundness when contracting with local companies to ensure timely completion and quality of the fab, and will continue to utilize excellent companies.

Simple labor such as workers, flaggers, traffic controllers, cleaning services, and security guards assisting with construction will prioritize hiring residents of Yongin. Even when skilled workers are needed, SK will consult with local manpower agencies to explore ways to contribute to local employment.

Beyond these direct effects, the city expects a trickle-down effect from the large-scale construction. It is estimated that the total number of workers involved over the approximately two-year construction period until the first half of 2027 will reach 3 million person-days. The spending of these workers on meals and accommodation is also expected to help revitalize the surrounding local commercial areas.

The city plans to soon open and operate a dedicated civil complaint office at the construction company's site office to facilitate smooth communication between local companies wishing to participate in the construction and the construction company. This office will encourage prioritizing local companies when obtaining permits or purchasing materials and will handle construction-related complaints.

Lee Sang-il, Mayor of Yongin City, said, "It is understood that 250 billion KRW worth of local resources have already been utilized during the site development process of the Yongin Semiconductor Cluster," adding, "We will continue to pay close attention to ensure that the agreement on local resource utilization with SK Hynix is effectively applied on-site and that the local economy is revitalized."