Yongin Mayor Lee Sangil: "Transport Networks, Worker Housing Key to Semiconductor Cluster's Success"

Yongin Mayor Lee Sangil Sends Letters to Land Ministry and Financial Services Commission
Urges Land Minister Hong Jiseon to Build South Gyeonggi Metropolitan Railway and Other Projects
Calls for "Five Rail Lines to Be Included in the 5th National Railway Network Construction Plan"
Tells Financial Services Commission Chairman Lee Eokwon of Funding Difficulties for Construction Worker Housing
Calls for Easing Regulations: "Apply PF Equity Ratio Requirements Flexibly"

Lee Sangil, mayor of Yongin Special City in Gyeonggi Province, has asked the government to expand connecting transport networks and provide financial support for housing construction workers, to ensure the successful development of the semiconductor cluster.

Yongin Special City Mayor Lee Sangil speaks at a rally held on the 1st at Daejang Neighborhood Park in Seongnam to call for the Southern Gyeonggi Metropolitan Railway to be included in the 5th National Railway Network Construction Plan. Provided by Yongin City.

A letter sent by Yongin Special City Mayor Lee Sang-il to Minister of Land, Infrastructure and Transport Hong Ji-seon. Provided by Yongin City.

On October 13, Mayor Lee sent separate letters to Hong Jiseon, Minister of Land, Infrastructure and Transport, and Lee Eokwon, chairman of the Financial Services Commission, calling for the early construction of railway and road networks and flexible application of the project financing (PF) equity ratio requirements for housing projects for construction workers.

In his letter to Minister Hong, Mayor Lee said, "To successfully develop the semiconductor cluster and enable the movement of people and goods, connecting transport networks, including roads and railways, must be built quickly. Government support for this is urgently needed."

He added, "Construction of the national industrial complex site is set to begin in November, and once construction of semiconductor production facilities starts at the end of 2027, traffic in the surrounding area is expected to surge as construction workers travel to the site and the number of construction vehicles increases." He called for major railway projects to be included in the 5th National Railway Network Construction Plan.

The five projects proposed are the construction of the South Gyeonggi Metropolitan Railway, extension of the Gyeonggang Line, extension of the Bundang Line, construction of the South Gyeonggi East-West Railway, and quadruple-tracking of the Suseo High Speed Railway (SRT) and construction of a new Guseong Station.

The South Gyeonggi Metropolitan Railway is a 50.7-kilometer line that would run from Jamsil Sports Complex Station in Seoul to Bongdam in Hwaseong, via Suseo Station, Pangyo in Seongnam, Sinbong-dong and Seongbok-dong in Yongin, and Gwanggyo in Suwon. Mayor Lee has discussed the project with Seongnam, Suwon, and Hwaseong since October 2022. On October 1, he joined Seongnam Mayor Shin Sangjin and residents of the four cities at a joint resolution rally calling for the project to be included in the national railway network plan.

The Gyeonggang Line extension would connect Gwangju Station to Namsa via Everland, covering about 38 kilometers. The Bundang Line extension would connect Giheung Station to Osan via Dongtan 2, covering about 16.9 kilometers. The South Gyeonggi East-West Railway would run 89.4 kilometers from Bubal-eup in Icheon to Jeongok Port, via the Yongin Semiconductor Cluster General Industrial Complex in Wonsam-myeon, Yongin; the National Advanced System Semiconductor Industrial Complex in Idong-eup and Namsa-eup; and Dongtan and Byeongjeom.

Mayor Lee also called for the early advancement of the Central Region Metropolitan Express Railway (JTX). The 135-kilometer project would connect Jamsil in Seoul to Cheongju International Airport and Osong Station via Gwangju, Yongin, Anseong, and Jincheon. The Korea Development Institute (KDI) is conducting a feasibility assessment for private investment.

"If the JTX is built, it will help address the transport imbalance between the Seoul metropolitan area and the central region and make it easier for semiconductor industry talent to travel between clusters," Mayor Lee said, calling for swift completion of the private investment feasibility assessment and support for an early start to construction.

For roads, he called for the Wonsam-Mapyeong section of Local Assistance Route 57 and the Jangji-Namsa section of Local Assistance Route 82 to be included in the 6th National Road and Local Assistance Road Plan. The letter also proposed widening Local Road 321, building a new connecting road to the national industrial complex, widening and building new sections of Baegok-daero, constructing an interchange providing access to the industrial complex, and improving major intersections.

Mayor Lee also sent a letter to Financial Services Commission Chairman Lee Eokwon, calling for financial regulations to be eased to help ensure stable housing for workers at semiconductor industrial complex construction sites.

"A large construction workforce is moving to Yongin, so it is urgent to secure housing where workers can stay comfortably throughout the construction period," Mayor Lee said. "The PF equity ratio requirements, which are based on typical profit-generating real estate development projects, are also being applied to worker housing serving as support facilities for industrial complexes. This is causing considerable difficulties in securing financing."

Lee Sang-il, mayor of Yongin Special City. Provided by Yongin City.

Yongin Mayor Lee Sang-il sent a letter to Financial Services Commission Chairman Lee Eog-weon on the 13th, requesting eased project financing regulations to ensure the timely supply of accommodations for workers building the semiconductor industrial complex. Photo provided by Yongin City.

Worker Housing Stymied by PF Regulations: "Equity Ratio Requirements Should Be Applied Flexibly"

Mayor Lee also sent a letter to Financial Services Commission Chairman Lee Eokwon, calling for financial regulations to be eased to help ensure stable housing for workers at semiconductor industrial complex construction sites.

"A large construction workforce is moving to Yongin, so it is urgent to secure housing where workers can stay comfortably throughout the construction period," Mayor Lee said. "The PF equity ratio requirements, which are based on typical profit-generating real estate development projects, are also being applied to worker housing serving as support facilities for industrial complexes. This is causing considerable difficulties in securing financing."

He added that delays in building worker housing could also affect the availability of the construction workforce needed to bring the semiconductor cluster into operation on schedule. He asked the government to make an exception and ease the equity ratio requirements for worker housing, including rental dormitories, in specialized complexes designated for national advanced strategic industries, or to establish separate review guidelines.

Yongin City expects up to around 26,000 workers to be employed at construction sites in the Yongin Semiconductor Cluster General Industrial Complex in Wonsam-myeon, Cheoin-gu. The city is providing administrative support, including expediting relevant permits and approvals, to supply housing by August 2028, when the construction workforce is expected to peak.

As of late September, permits and approvals had been completed for 9,634 housing units, including rental dormitories, officetels, and temporary accommodations. Applications for another 6,112 units are under review. If the projects under review are approved and built as scheduled, a total of 15,746 units will be supplied. However, some developers have been unable to begin construction despite obtaining building permits because of difficulties securing PF financing.

"The success of the Yongin Semiconductor Cluster is directly linked to strengthening the future industrial competitiveness of the Republic of Korea," Mayor Lee said. "Decisive action and active support from the government are urgently needed to ensure that transport infrastructure, including roads and railways, as well as housing infrastructure for workers, is in place on time."

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