From Materials and Equipment to Cafeterias: SK Hynix Plant Construction Brings Vitality to Yongin's Economy

Local Resource Utilization Reaches 172.7 Billion Won Since Last Year’s Groundbreaking
Industrial Complex Developer Also Pledges 64.8 Billion Won in Public Contributions

SK Hynix's semiconductor production line (fab), currently under construction in Wonsam-myeon, Cheoin-gu, Yongin City, Gyeonggi Province, is breathing new life into the local economy. Since construction began in February last year, the scale of local materials, equipment, and labor used for the fab has already exceeded 170 billion won.

According to Yongin City, from the groundbreaking of SK Hynix's first fab at the Yongin Semiconductor Cluster General Industrial Complex in Wonsam-myeon in February last year until the end of November of the same year, SK's utilization of local resources amounted to 172.67 billion won. This figure exceeds SK's initial target of 141.26 billion won for local resource utilization during this period by more than 31.4 billion won.

Local procurement of materials reaches 72.5 billion won... Ready-mixed concrete and equipment sectors benefit from 'semiconductor boom'

A view of the production line of SK Hynix, which is under construction at the Yongin Semiconductor Cluster General Industrial Complex in Wonsam-myeon, Cheoin-gu, Yongin. SK revealed that since the start of construction of the production line in February last year, it has utilized more than 170 billion won worth of local resources. Provided by SK Hynix

The most prominent area of local resource utilization has been 'materials.' During this period, SK Ecoplant, the construction company, procured 72.5 billion won worth of materials from the Yongin area. Local equipment usage also reached 29.66 billion won, while general expenses such as rental fees and meal costs amounted to 32.2 billion won.

In the labor sector, including manpower, 20.71 billion won was spent, which is 11.11 billion won more than planned. Outsourcing costs also increased to 17.57 billion won, up 1.59 billion won from the original plan.

For example, SK Ecoplant has contracted with a consortium of local companies for ready-mixed concrete, sourcing most of the required volume from Yongin. Nearly half (47.9%) of all equipment is also utilized from Yongin, and for management equipment such as hydro cranes and forklifts, as much as 99.2% is sourced locally.

In the construction sector, the company has signed contracts worth 24.8 billion won for permits, design services, and construction with 19 local companies. Additionally, it is proceeding with the construction of an external parking lot worth about 7 billion won, restricting bidding eligibility to companies registered in Cheoin-gu.

Local companies are also being used for waste disposal, hospitals, shuttle bus operations, food ingredients, and worker accommodations, while local residents have been hired for safety monitoring and safety facility teams.

SK stated, "We have procured food ingredients for the cafeteria from Yongin and even hired restaurant staff and security guards from among Yongin residents, resulting in a much higher utilization of local resources than initially planned."

The amount of local resources utilized is expected to continue increasing until the fab is completed. SK Ecoplant previously submitted a plan to the city to utilize 450 billion won worth of local resources from the Yongin area during the construction of the first fab by December 2024.

The city is also mobilizing all available administrative resources to support fab construction and local resource utilization. The city formed a building permit task force during the approval process to provide preliminary consulting and speedy administrative services. At the same time, it has established a control tower with the project operator to discuss measures for revitalizing the local economy, review quarterly results, and propose additional agenda items, thereby maintaining a cooperative system.

Industrial complex operator pledges 65 billion won in public contributions, including multi-purpose cultural spaces for residents

A bird's-eye view of the 'Yongin Semiconductor Cluster General Industrial Complex,' which houses SK Hynix's 4th semiconductor production line and its partner companies. Provided by Yongin City

Yongin General Industrial Complex Co., the developer of the industrial complex, has also pledged 64.8 billion won in public contributions for local residents.

The company plans to begin construction in the first half of next year on a community center with a total project cost of 30.6 billion won and the Wonsam Multi-purpose Cultural Space Project worth 10 billion won.

The community center will have two underground and four above-ground floors, with a total floor area of 11,115 square meters, and will include a library, swimming pool, public health center, and youth facilities. The Wonsam Multi-purpose Cultural Space, with one underground and one above-ground floor and a total area of 2,369 square meters, will house a museum, performance hall, and a memorial hall for independence activist Oh Hee-ok.

Additionally, the developer will invest 3.2 billion won to build a 32,107-square-meter public wastewater treatment facility in Jukneung-ri, Wonsam-myeon, and create a sports park on its upper level. The park will include a soccer field, multi-purpose field, and park golf course.

Lee Sangil, Mayor of Yongin, stated, "SK Hynix and SK Ecoplant have been implementing a plan to utilize 450 billion won worth of local resources even before the fab becomes operational in order to revitalize the local economy. We positively evaluate their efforts to honor the agreement, such as sharing specific details with the city."

Mayor Lee added, "I will closely monitor the progress to ensure that the public contribution facilities promised by Yongin General Industrial Complex can open as planned."