Samsung Electronics Announces 360 Trillion Won Plus Investment Plan
LH to Place Orders for Industrial Complex Construction
Yongin City Requests Active Support from Ministry of Economy and Finance
The development of the 'Yongin Advanced System Semiconductor National Industrial Complex,' a mega-project involving the construction of semiconductor production facilities on a site covering 2.35 million pyeong, is gaining momentum.
According to Yongin City and other sources on December 29, Korea Land and Housing Corporation (LH) and Samsung Electronics signed a land purchase agreement on December 19 for the establishment of the industrial complex in the I-dong and Namsa-eup areas of Yongin City, Gyeonggi Province. Following this, LH began negotiations for compensation with landowners within the planned site, covering land and obstacles (such as buildings, structures, and trees), starting on December 22. As of December 26, just five days later, the compensation process had reached a progress rate of 14.4%.
LH plans to accelerate the establishment of the industrial complex, starting with the ongoing first round of land compensation. Once the investigation of obstacles (including buildings and business rights) is completed, related compensation will proceed sequentially.
The Yongin Advanced System Semiconductor National Industrial Complex is a massive project in which Samsung Electronics will build six system semiconductor production facilities (fabs) on a site of 7,773,656 square meters (approximately 2.35 million pyeong) in the I-dong and Namsa-eup area. Samsung Electronics has announced an investment of 360 trillion won in this location, but expectations are that the investment scale will grow further as the construction of production facilities progresses.
Aerial view of the Advanced System Semiconductor National Industrial Complex in I-dong and Namsa, Yongin City. Yongin City.
To facilitate the establishment of the industrial complex, the LH Yongin Semiconductor National Industrial Complex Headquarters is operating an online reservation system for compensation consultations, considering the convenience of local residents. At the same time, for residents who find online access difficult, an in-person reception desk is available at the on-site office, allowing immediate contract processing. LH plans to soon place orders for construction work on the complex and begin construction in the second half of next year.
Yongin Mayor Lee Sangil stated on this day that he met with Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol the previous day to request active government support, including from the Ministry of Economy and Finance, to ensure the project proceeds without setbacks. Mayor Lee emphasized to Deputy Prime Minister Koo that the Yongin I-dong and Namsa-eup Advanced System Semiconductor National Industrial Complex must be developed swiftly and that transportation infrastructure, such as roads and railways connecting to the national industrial complex, should be rapidly expanded.
The five key requests made to Deputy Prime Minister Koo for active consideration were: timely construction of infrastructure such as power and water supply for the Advanced System Semiconductor National Industrial Complex; provision of low-interest policy funds for residents and businesses relocating to the complex; reduction of local government financial burden for the national advanced strategic industry materials, parts, and equipment investment support program; support for passing the preliminary feasibility study for the 6th National Road and Local Road Construction Plan; and either exemption from or expedited progress on the preliminary feasibility study for the extension of the Bundang Line (from Giheung Station to Dongtan to Osan University Station).
The semiconductor industry believes that this compensation process could be a watershed moment for the competitiveness of Korea's semiconductor sector. With semiconductor demand surging due to the spread of artificial intelligence (AI), it is crucial to ensure timely operation of production lines within the national industrial complex. Approximately 80 semiconductor materials, parts, equipment, and design companies, as well as research institutes, are expected to be located in the Yongin National Industrial Complex.
In particular, the complex is regarded as a future semiconductor hub due to its excellent accessibility to existing sites and partner companies in Giheung, Hwaseong, and Pyeongtaek, as well as its advantageous location for securing talent in the greater Seoul area. Since the announcement of the national industrial complex plan in March 2023, administrative procedures have proceeded rapidly, culminating in the final approval of the project plan by the Ministry of Land, Infrastructure and Transport in December last year. LH has also accelerated the compensation process by announcing the compensation plan in June this year and promptly conducting appraisals and determining compensation amounts.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
