Second Yongin Technovalley Nearly Sold Out at Just 15% Completion
Semiconductor Firms Replace Traditional Industries in Wonsam and Wonsam 2 Complexes
The industrial complexes being developed in Yongin, Gyeonggi Province, are benefiting from the semiconductor halo effect. Most of the sites in the early stages of development have already been sold, and semiconductor companies are purchasing land instead of traditional industries, transforming these areas into advanced industrial complexes.
According to Yongin City on August 24, the “Second Yongin Technovalley General Industrial Complex” in Idong-eup, Cheoin-gu, has achieved only 15% progress in site development, but 45 out of 46 industrial facility plots have already been sold, with just one plot remaining. This is in stark contrast to many new industrial complexes in both provincial and metropolitan areas, which often struggle to attract tenants even after construction is completed.
Locals attribute the popularity of the Second Yongin Technovalley to the “semiconductor cluster” effect. Since the beginning of the year, SK Hynix has started building its first production line at the Yongin Semiconductor Cluster in Wonsam-myeon nearby. Samsung Electronics is investing 360 trillion won to establish a large-scale production line at the Idong and Namsa-eup “Advanced System Semiconductor National Industrial Complex,” attracting semiconductor companies seeking the benefits of agglomeration.
In fact, the list of land buyers for the Second Yongin Technovalley includes Tokyo Electron Korea, the Korean subsidiary of the global semiconductor equipment company Tokyo Electron. The company acquired a 63,292-square-meter plot within the complex to establish a new business site.
Existing industrial complexes that had faced delays or struggled with sales are also enjoying the special benefits of the semiconductor cluster.
Wonsam General Industrial Complex and Wonsam 2 General Industrial Complex, located near the Yongin Semiconductor Cluster, originally aimed to attract plastic and chemical manufacturers but have struggled due to underwhelming performance.
Recently, however, companies such as Tokyo Electron Korea, STI Co., Ltd., and NanoX Korea have moved into these complexes, changing the industrial landscape. Tokyo Electron Korea will begin construction next month on a research and development (R&D) center with nine buildings and a total floor area of 61,788 square meters on a 45,069-square-meter plot in Wonsam General Industrial Complex. STI Co., Ltd. partially completed and began operating its second plant there in 2020.
In the case of the Jigok General Industrial Complex in Giheung-gu, the Korean subsidiary of Lam Research and Search & Delve Co., Ltd. have moved in. With the completion of infrastructure and the handover of facilities to tenant companies, the complex is nearing completion. The Jeil General Industrial Complex, currently under development in Yangji-myeon, will also soon house semiconductor companies such as TES Co., Ltd., PTC Co., Ltd., and SNC Solution Co., Ltd.
As demand for industrial complexes centered on semiconductors increases, Yongin City is considering expanding the supply of industrial land. As a follow-up to the Second Yongin Technovalley, the city plans to apply for approval from the Ministry of Land, Infrastructure and Transport within the year for the “Yongin Semiconductor Cooperation General Industrial Complex,” which will be developed on a 260,378-square-meter site in Jugneung-ri, Wonsam-myeon. The original target for completion was set for 2030 by the developer, but the city aims to accelerate the timeline in response to corporate demand.
Lee Sangil, Mayor of Yongin, stated, “Once the Advanced System Semiconductor National Industrial Complex and the Yongin Semiconductor Cluster General Industrial Complex are completed, Yongin will have the world’s largest semiconductor ecosystem for a single city.” He added, “We will support Korea’s semiconductor companies in maintaining their competitive edge by minimizing the time required for permits and approvals for outstanding companies entering Yongin.”
As of August, Yongin City has either completed or is developing 21 general industrial complexes. Of these, five complexes-Yongin Technovalley, Packaging, Tongsam, Nongseo, and Hancom-have been completed, while eight, including Wonsam, Jigok, and the Second Yongin Technovalley, are under construction. Six complexes, including Jugneung and Tongsam 2, are in the process of obtaining business plan approval.
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