"Is It Only Samsung and SK Hynix?"... Stocks Quietly Smiling at the 1,000 Trillion Won Yongin Plant [Weekend Money]

Trillions Flow into Samsung and SK hynix's Yongin Plants: Beneficiaries Expected
Yongin Semiconductor Region Draws Attention from Construction Industry Perspective
"Performance Impact Will Be Reflected Faster Than in the Southwestern Region"

With hundreds of trillions of won in investment pouring into the construction of the semiconductor plant in Yongin, it is expected that construction companies will experience a performance momentum.

Samsung Electronics Chairman Jay Y. Lee and SK Group Chairman Tae Won Choi shook hands at the National Briefing on Three Major Mega Projects held at the Blue House on the 29th of last month, presided over by President Jae Myung Lee. Photo by Yonhap News Agency

On July 4, IBK Investment & Securities, in its report "The Era of a Nationwide Semiconductor Cluster: Yongin as the Starting Point," projected that Samsung C&T and SAMSUNG E&A would be the biggest beneficiaries.

On June 29, the government announced large-scale industrial investment plans for sectors such as semiconductors and artificial intelligence (AI) data centers. In the semiconductor sector, the main directions presented were the early completion of production bases in the Seoul metropolitan area, the establishment of a second production base in the southwestern region, the nurturing of a packaging hub in the Chungcheong region, and the expansion of the materials, parts, and equipment ecosystem in the southeastern and Daegyeong regions.

From a construction industry perspective, attention should be paid to the Yongin semiconductor area. While the southwestern region is significant due to the expansion of its long-term pipeline as a second production base, new site acquisition and infrastructure construction must come first. In contrast, in Yongin, industrial complex plan approvals, land acquisition procedures, and infrastructure development are already underway.

Projects underway on pre-secured sites, such as Yongin, can lead to faster recognition of orders and revenue. In contrast, new site projects in the southwestern region, even with significant investment amounts, require land acquisition, compensation, and permits, resulting in a time lag before reflecting in performance. According to plans for Yongin, Samsung Electronics announced that it would move up the completion year for six factories, worth 360 trillion won, from 2047 to 2040. SK hynix said it would increase its factory investment from 122 trillion won to 600 trillion won and shorten the completion year from 2045 to 2033.

Jounghyun Cho, a researcher at IBK Investment & Securities, said, "Yongin is expected to provide construction companies with performance momentum, given the early monetization of a highly visible existing pipeline and a large-scale pipeline resulting from the increased investment by SK hynix."

This content was produced with the assistance of AI translation services.