The project to develop the ‘Yongin Advanced System Semiconductor National Industrial Complex’ in Yongin City, which has been subject to controversy due to Climate Energy Environment Minister Kim Sung-hwan’s remarks about relocating to another region, is proceeding with the commencement of land purchase agreements. According to Yongin City and others, the Korea Land and Housing Corporation (LH) and Samsung Electronics signed a land purchase agreement on December 19 to develop the industrial complex.
As a result, LH began negotiating compensation with landowners within the planned site for land and structures (buildings, facilities, trees, etc.) on December 22. As of December 26, the compensation process had recorded a progress rate of 14.4%. LH plans to expedite the development of the industrial complex by proceeding with compensations starting with the first phase of land compensation and following up with subsequent compensations once the investigation of structures (buildings, business rights, etc.) is completed.
LH will soon issue a tender for the construction of the industrial complex, with construction expected to begin in the second half of next year. The Yongin Advanced System Semiconductor National Industrial Complex is a massive project, where Samsung Electronics plans to build six system semiconductor manufacturing facilities (Fabs) on a site of 7,773,656 square meters (approximately 2.35 million pyeong) in the Idong and Namsa-eup areas. Around 80 semiconductor materials, components, equipment, design companies, and research institutions are also expected to move in.
The Yongin National Industrial Complex is highly regarded as an optimal location for the future semiconductor business due to its excellent accessibility to existing Giheung, Hwaseong, and Pyeongtaek plants and partners, as well as the advantageous capabilities for securing skilled personnel in the metropolitan area. Following the announcement of the national industrial complex plan in March 2023, it received final project plan approval from the Ministry of Land, Infrastructure, and Transport in December of last year after completing administrative procedures.
Meanwhile, in the midst of these developments, Minister Kim Sung-hwan’s comments regarding the possibility of relocating the ‘Yongin Semiconductor Cluster’ due to power supply concerns have sparked controversy. During an interview on the ‘Climate-Friendly Economic Life’ program aired on CBS Radio, Minister Kim mentioned, “There is contemplation on whether it needs to be moved to a region with a better power supply,” suggesting a consideration of relocation.
This statement has raised opposition within the Yongin region, considering the relocation discussion as disrupting already initiated land compensation procedures. A company representative expressed concern, saying, “It is inappropriate for a specific minister to discuss relocation when the industrial complex approval and land acquisition have already started, and Minister Kim’s remarks are spreading anxiety.”