Lee Sangil: "Invest Additional Tax Revenue from Semiconductors in Rail Network"... Creating Fund of Up to 1 Trillion Won

Yongin Mayor Lee Sangil launches key pledge of his ninth term
Expanding Southern Gyeonggi Metropolitan Railway, Dongbaek-Sinbong Line, and Gyeonggang Line extension
Building the fund from 2027, with up to 1 trillion won by 2030
Using increased semiconductor tax revenue to secure 1.945 trillion won in funding in advance
Mayor Lee: "Expanding the railway network is essential to the success of semiconductor projects"

"We will invest the additional tax revenue generated by the growth of the semiconductor industry in railway infrastructure for Yongin's future. We will ensure that the benefits of semiconductor projects lead to more convenient transportation and a better quality of life for residents."

Yongin Special City Mayor Lee Sang-il speaks at a joint rally on the 1st calling for the Gyeonggi Southern Metropolitan Railway to be included in the 5th National Rail Network Construction Plan. Provided by Yongin City.

Lee Sangil, mayor of Yongin Special City in Gyeonggi Province, has detailed plans to reinvest the additional tax revenue generated by semiconductor industry growth in expanding the railway network. The city plans to establish a railway fund of up to 1 trillion won by 2030, providing a financial foundation for major railway projects, including the Southern Gyeonggi Metropolitan Railway, the new Dongbaek-Sinbong Line, and an extension of the Gyeonggang Line.

Yongin City announced on the 15th that it had established a master plan for creating a railway fund, a key pledge of Mayor Lee Sangil in his ninth popularly elected term, and had begun the administrative procedures in earnest.

Mayor Lee emphasized, "For Yongin's mega semiconductor projects to succeed, it is crucial to build a railway network on time that improves transportation convenience for semiconductor industry workers and residents and enables smooth freight transportation. We will establish a stable financial foundation so that major railway projects can proceed without disruption."

Yongin City plans to build up the railway fund in stages starting in 2027, securing at least 500 billion won by 2030 and potentially increasing it to as much as 1 trillion won, depending on the city's fiscal conditions.

The fund will draw on the projected increase in local tax revenue resulting from large-scale semiconductor projects by Samsung Electronics and SK hynix, as well as interest income earned through fund management.

The city plans to allocate 70 billion to 150 billion won to the fund through a supplementary budget in 2027. It will then adjust annual contributions flexibly, taking into account both the trend in local tax revenue growth driven by the semiconductor industry's expansion and the city's overall fiscal conditions.

The city will also establish an institutional framework for the fund. It plans to enact the "Yongin City Ordinance on the Establishment and Management of a Railway Fund" (tentative title) and begin making contributions to and managing the fund in the second half of 2027, following the relevant procedures, including deliberation and approval by the city council.

The fund will be used for new metropolitan and urban railway projects, including the Southern Gyeonggi Metropolitan Railway and the Dongbaek-Sinbong Line. It will also provide a financial foundation for expanding major railway networks, such as the Gyeonggang Line extension, and will be used to replace or upgrade aging vehicles and railway systems on the Yongin EverLine.

Yongin City estimates that its share of the costs for future railway projects will total approximately 1.945 trillion won.

The city expects to need 174.3 billion won for railway projects currently underway, including the Indeogwon-Dongtan double-track railway and the Samseong-Dongtan Metropolitan Express Railway; 1.1899 trillion won for new metropolitan and urban railway projects; and 580.8 billion won to replace aging Yongin EverLine vehicles and railway systems.

Yongin Special City Mayor Lee Sang-il speaks at a joint rally on the 1st calling for the Gyeonggi Southern Metropolitan Railway to be included in the 5th National Railway Network Construction Plan. Provided by Yongin City.

However, the city's actual share of the costs may vary depending on the progress of the projects and the funding allocation ratios between the central government and local governments.

Yongin City says it needs to secure funding in advance to expand its railway network, anticipating increased industrial and transportation demand as mega semiconductor industrial complexes are developed. Because large-scale railway projects require substantial investment over many years, the city aims to establish a stable financial foundation through a dedicated fund.

Mayor Lee Sangil particularly stressed that the economic benefits of semiconductor industry growth should be shared with residents.

Mayor Lee Sangil said, "As semiconductor production by SK hynix and Samsung Electronics gets underway in earnest and semiconductor materials, parts, equipment, and design companies continue to move into the city, local tax revenue is expected to increase. We need to be prepared to invest some of that additional revenue in railway infrastructure for Yongin's future."

He added, "Residents have given up their homes and livelihoods and endured various inconveniences to support the development of the semiconductor industry. We will ensure that the benefits of semiconductor projects lead to an expanded transportation network and a better quality of life for residents."

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