Mayor Lee Sangil: "Even as Tax Revenues Rise in the Semiconductor Boom, Beware of Discretionary Welfare Spending"

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Despite the increase in tax revenue brought by the semiconductor industry boom, Yongin Special City Mayor Lee Sangil cautioned against excessive welfare spending and emphasized the need for prudent fiscal management to prepare for a future downturn. He called for the city to proactively address the influx of construction workers for large-scale semiconductor industrial complexes and to speed up administrative processes in line with the city’s rapid growth.

Yongin Mayor Lee Sangil presides over the third briefing on the 2027 major initiatives implementation plan in the video conference room at City Hall on the 14th. Provided by Yongin City.

At the third briefing on the 2027 Major Business Plans, held in the video conference room at City Hall on October 14, Mayor Lee said, "Semiconductors are a cyclical industry that repeatedly goes through booms and downturns. We must not spend public funds recklessly just because tax revenue is increasing now."

Mayor Lee urged the city to draw up its budget with long-term fiscal stability in mind, saying, "Samsung Electronics and SK hynix may post large operating profits during a boom, but they could record operating losses when a downturn comes. The tax revenue flowing into the city could fall accordingly."

He added, "We set aside funds such as the railway fund and the semiconductor cooperation fund because we cannot spend lavishly just because revenue is coming in. If we increase discretionary spending in the name of universal welfare during a boom, it could become difficult to sustain later."

"Budget planning must be prudent, but projects that need to be pursued boldly must move forward quickly," he said.

The briefing also focused on response measures for the development of the Yongin Semiconductor Cluster General Industrial Complex in Wonsam-myeon, Cheoin-gu, and the Advanced System Semiconductor Cluster National Industrial Complex in Idong-eup and Namsa-eup.

While outlining the progress of construction at SK hynix's semiconductor production facilities, Mayor Lee directed officials to prepare traffic and parking measures for the expected influx of construction workers.

"Construction of half of SK hynix's first fab is well underway, and work on the other half has also begun," he said. "Construction of the second fab is also set to begin in the first half of next year, so the construction workforce, currently around 24,000, is expected to exceed 30,000 next year."

Yongin Special City Mayor Lee Sangil emphasizes the importance of careful budget planning at the third briefing on the 2027 major work plan on the 14th. Photo provided by Yongin City.

"Work is also expected to begin by the end of this year on site preparation for the national industrial complex. Once construction of the semiconductor production facilities gets underway in earnest, even more workers will come in," he said, urging the relevant departments to prepare proactive measures, including operating a dedicated task force (TF).

Yongin City previously operated a TF during construction of SK hynix's first fab to expedite the building permit process. In response, as part of its efforts to contribute to the local community, SK hynix drew up and is implementing a plan to use local resources worth 450 billion won for construction of half of the first fab.

The city is also pursuing traffic measures, including securing parking hubs, to minimize recurring traffic congestion and illegal parking caused by the growing construction workforce.

Mayor Lee also stressed the need to improve administrative procedures.

"Some projects take a year for a feasibility study and another year for design. It's hard to understand why they need to take so long," he said. "When departments need to coordinate, they should do so on the same day, or at least resolve the matter the following day if they cannot do so immediately. We need to speed up our work."

He added, "As Yongin City is developing rapidly, the public sector must also change and move away from its existing ways of handling work."

He also called for improvements to organizational operations to reduce public officials' workloads.

"At a recent meeting with employees of the Cheoin-gu Office, staff said that their workloads keep piling up as major business plans and new projects are added every year," Mayor Lee said. "Senior officials should carefully review employees' workloads and boldly eliminate tasks that are unnecessary or can be reduced."

Yongin Special City Mayor Lee Sang-il emphasizes the need for prudence in budget allocation at the third briefing on the 2027 key business implementation plan on the 14th. Photo provided by Yongin City.

At the briefing, Mayor Lee emphasized the need to ensure fiscal soundness during the semiconductor boom, proactively respond to urban changes resulting from industrial complex development, and improve administrative efficiency.

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