- "Gyeongbu Axis" Is a Thing of the Past, Now It's the "Semiconductor Axis": Real Estate Surges on Record Samsung and SK Investments
- Intense Competition to Secure "Yongin Prugio One Cluster 2 and 3 Complexes"... Exempt from New Regulations
As the semiconductor industry, the core driving force of South Korea's economy, begins a full-scale restructuring centered around the southern region of Gyeonggi Province, the local real estate market is rapidly emerging as a new "wealth line." With the advent of the global AI era, semiconductors have become a key industry that determines national competitiveness, far beyond their former status as simple IT components. As a result, the value of regions capable of hosting production bases is being further highlighted.
In particular, as the "Yongin Advanced System Semiconductor Cluster National Industrial Complex" is scheduled to begin land compensation in the second half of this year, there is growing activity among buyers seeking to secure future value in advance.
◆ 'Semiconductor Two-Top' Drives Growth, Land Compensation for Advanced System Semiconductor Cluster in Full Swing
Large-scale investments by global "semiconductor two-top" companies, Samsung Electronics and SK Hynix, are being concentrated in the southern region of Gyeonggi Province, especially in the Yongin area. This region is transforming into a core axis that combines future-oriented industries and residential spaces. In the Wonsam-myeon area, SK Hynix is developing the "Yongin Semiconductor Cluster General Industrial Complex," with the first fab (semiconductor factory) breaking ground in February 2025 on a 4.15 million square meter site. The remaining three fabs are also planned for sequential completion. Additionally, in the Idong and Namsa-eup areas, Samsung Electronics plans to invest KRW 360 trillion to build six fabs and more as part of the "Advanced System Semiconductor Cluster National Industrial Complex," with construction scheduled to begin next year.
From the second half of this year, land compensation work for the Advanced System Semiconductor Cluster will also commence in earnest. On July 14, the Ministry of Land, Infrastructure and Transport announced the start of public notice for the revised project plan. The revision includes an increase in the industrial complex area by 500,000 square meters, from the previous 7.28 million square meters to 7.77 million square meters. This expansion is to provide additional relocation complexes for 52 companies located on the site. The total project cost also surged by nearly KRW 600 billion, from the original KRW 9.0637 trillion to KRW 9.637 trillion.
Accordingly, the real estate market is expected to undergo a seismic shift centered around semiconductors. In the past, the axis of South Korea's industrial map was formed along the Gyeongbu Expressway, known as the "Gyeongbu Axis." Now, the paradigm is shifting toward the "semiconductor axis." With the addition of the massive Yongin investment to the existing K-Semiconductor Belt, the southern region of Gyeonggi Province is emerging as the undisputed heart of South Korea's future industries.
The pre-sale market is also showing vitality. Notably, "Yongin Prugio One Cluster 1 Complex," located in the Eunhwasam District of Cheoin-gu and offering excellent accessibility to the advanced cluster, achieved a complete sell-out of all 1,681 units. Land prices are also on the rise. According to data from the Korea Real Estate Board, Cheoin-gu in Yongin ranked first in the nation for land price growth for two consecutive years, recording a 6.66% increase in 2023 and a 5.86% increase in 2024, driven by the creation of the semiconductor national industrial complex.
A real estate expert stated, "With semiconductor investments now within visible range in the Yongin area, complexes that have secured locations with proximity to the industrial clusters are emerging as regions with not only complete sell-outs but also expectations for long-term value retention." The expert added, "This is a representative case where changes in industrial structure are directly linked to future demand in the real estate market."
◆ Smooth Contract Progress for Yongin Prugio One Cluster 2·3 Complexes
Amidst these developments, "Yongin Prugio One Cluster 2·3 Complexes," currently being sold in the Eunhwasam District of Cheoin-gu, Yongin, are emerging as key beneficiary complexes in the southern Gyeonggi region, which is being restructured as the semiconductor axis.
Yongin Prugio One Cluster 2 and 3 Complexes are follow-up projects to "Yongin Prugio One Cluster 1 Complex," which was successfully sold out in 2024. They consist of a total of 2,043 units, with exclusive areas of 59 square meters and 84 square meters.
Above all, the complexes are optimally located between the Advanced System Semiconductor Cluster being built by Samsung Electronics and the Yongin Semiconductor Cluster being developed by SK Hynix. They boast direct access to both industrial complexes via National Route 45 and Local Route 57.
In terms of contract conditions and sale prices, the complexes offer favorable terms for both end-users and investors. The initial contract payment is KRW 5 million, with a total contract payment of 5% under a fixed-rate system. Units can be resold six months after the winner announcement, reducing the initial burden. In particular, the ability to resell before the interim payment loan period adds investment appeal. For the 59-square-meter units, move-in is possible at a price in the KRW 20 million range, while the sale price for the 84-square-meter units is in the upper KRW 500 million range, making it competitive compared to the metropolitan area average. Furthermore, as the complexes were announced before the June 27 loan regulation, they are not subject to the Stress DSR Stage 3 and interim payment loan restrictions.
As befits a large-scale brand apartment, landscaping, design, and community facilities are also strengths. All parking lots are located underground, allowing the ground level to be designed as a park-type complex. Approximately 40% of the area is dedicated to landscaping, with a central courtyard, walking trails, exercise spaces, playgrounds, and various outdoor rest areas, providing a pleasant residential environment. The interior layouts maximize space utilization with features such as four-bay, pantry, and alpha rooms, which are highly preferred by end-users. In addition, a variety of community facilities are provided, including screen tennis, an indoor tennis practice room, an indoor gymnasium, a golf club, a fitness club, a sauna, shower rooms, a study room, a shared office, and a kids' cafe, enabling a one-stop lifestyle for leisure, exercise, education, and childcare within the complex.
Furthermore, Jongno M School will be established in the Eunhwasam District, offering lectures in elementary and middle school English, mathematics, and other subjects. Residents' children will receive a 30% tuition discount for two years. A public library, Namdong Library, is also scheduled to be completed on an adjacent site before the complex is finished, allowing residents to enjoy reading and a variety of cultural activities.
The living infrastructure is also abundant. The Gyeongan Stream Riverside Park is located nearby, allowing residents to enjoy nature and leisure within the city. Additionally, amenities such as E-Mart, CGV, Yongin Central Market, and Cheoin-gu Office are close by, enhancing satisfaction for residents.
A representative of a real estate agency in Cheoin-gu stated, "With the development of the semiconductor cluster becoming visible, the atmosphere in the Cheoin-gu area has changed so dramatically that the phrase 'sangjeonbyeokhae' (a complete transformation) is fitting." The representative added, "In particular, large-scale brand apartments like 'Yongin Prugio One Cluster,' which combine location and product quality, are likely to become future landmarks of the region. As a result, there is steady interest not only from end-users but also from metropolitan investors seeking to secure future value."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
