Mayor Lee: “Semiconductor Mega-Projects Fully Underway... Up to 1 Trillion Won Railway Fund to Be Established”

Yongin Mayor Lee Sangil Outlines Traffic, Parking, and Lodging Measures on Radio
All-Out Effort to Expand Grid-Style Rail Network, Including Gyeonggang Line Extension and New JTX
Yongin Welcomes All Four Global Equipment Giants: "We Will Lead the Semiconductor Ecosystem"
Mayor Lee: "We Will Set Aside Increased Tax Revenue for a Railway Fund Starting Next Year"

Lee Sangil, mayor of Yongin Special City in Gyeonggi Province, said on November 9 that the city would “strongly pursue effective comprehensive measures to minimize inconvenience to residents” related to site preparation work for the Yongin Advanced System Semiconductor National Industrial Complex in Idong-eup and Namsa-eup, Cheoin-gu. He also unveiled a plan to establish a “railway fund” of up to 1 trillion won, using city funds to keep pace with the rapid population influx driven by the growth of the semiconductor industry.

Yongin Special City Mayor Lee Sangil appears on OBS Radio's "Kim Junho's Good Morning OBS" on the 9th. Photo provided by Yongin City.

Appearing on OBS Radio’s “Kim Junho’s Good Morning OBS” that morning, Mayor Lee explained the measures for construction of the Yongin Advanced System Semiconductor National Industrial Complex, now being built in Idong-eup and Namsa-eup, Cheoin-gu, as well as plans to expand the rail network.

The national industrial complex is a project in which Samsung Electronics will invest 360 trillion won to build six semiconductor fabrication facilities, or fabs, on a site of approximately 2.35 million pyeong. The project aims for completion in 2040, and site preparation work began on October 28. “After about a year of site preparation in Zone 1, construction of the first fab will begin around this time next year. All three of Yongin’s mega-projects are now fully underway,” Mayor Lee said.

Yongin City is coordinating response measures with Samsung Electronics, Korea Land and Housing Corporation (LH), and the police to prepare for traffic congestion caused by the influx of large numbers of construction workers and vehicles. Measures under discussion include restricting construction vehicle operations during rush hours and stationing traffic controllers at major intersections. The city is also considering creating a park-and-ride hub for workers on approximately 60,000 pyeong of unused land near the industrial complex.

“We are looking for ways to address not only traffic congestion and parking shortages but also temporary accommodation for construction workers,” Mayor Lee said. “We have asked the Financial Services Commission to establish separate lending criteria.” He added, “Drawing on the experience we gained during the development of the Yongin Semiconductor Cluster General Industrial Complex, we will prepare response measures for each area.”

Mayor Lee emphasized that expanding the rail network is essential to meet the increased demand for transportation after the semiconductor industrial complex begins operations. He said that once the national industrial complex is completed, the number of workers based there is expected to reach approximately 105,000.

Regarding the Yongin Semiconductor Cluster, where SK hynix is investing 600 trillion won to build four fabs on approximately 1.26 million pyeong in Wonsam-myeon, Cheoin-gu, he said, “More than 24,000 people are currently working on fab construction. We understand that the workforce will reach approximately 40,000 when all four fabs are completed in 2033.” He explained that roughly half of the first fab is scheduled to be completed by February 2027, when its first-floor cleanroom will begin operating and semiconductor production will start.

“Investments by domestic and international materials, parts, equipment, and design companies are continuing around the industrial complexes, bringing more people to Yongin,” Mayor Lee said. “That is why we are emphasizing the expansion of a rail network that connects the city in a grid pattern.”

The city has asked the government to include the new Southern Gyeonggi Metropolitan Railway, extensions of the Gyeonggang Line and Bundang Line, and the Southern Gyeonggi East-West Cross-Country Line in its Fifth National Railway Network Construction Plan. It has also urged the government to expedite administrative procedures for the Central Region Metropolitan Express Railway (JTX), which seven local governments, including Yongin, are jointly pursuing as an alternative to extending the Gyeonggang Line from Gyeonggi Gwangju Station through the national industrial complex to Namsa.

The city plans to fund railway construction by using the increase in tax revenue resulting from the growth of the semiconductor industry.

A view of the SK hynix semiconductor cluster construction site in Wonsam-myeon, Yongin City. Courtesy of Yongin City.

“Tax revenue is expected to increase next year amid a boom in the semiconductor industry, but it is difficult to predict fluctuations in the business cycle,” Mayor Lee said. “We plan to set aside some of the surplus tax revenue in a railway fund.”

He added, “Railway projects connecting Yongin’s three districts will require substantial funding, but they are essential infrastructure projects for the city’s development. We will build up the fund and prepare to ensure the projects proceed without disruption.”

He also outlined investment plans in Yongin by global semiconductor equipment companies.

“ASML of the Netherlands, the world’s leading producer of extreme ultraviolet (EUV) lithography equipment, has decided to establish an office serving as an on-site service center in Wonsam-myeon, Cheoin-gu, near SK hynix’s semiconductor industrial complex. U.S. semiconductor equipment company Applied Materials Korea also plans to establish a large field office in a nearby industrial complex for partner companies,” Mayor Lee said. “Lam Research, the world’s third-largest semiconductor equipment company, has built a research and development facility in Jigok Industrial Complex in Giheung-gu, while Tokyo Electron, the world’s fourth-largest, plans to build a research center in Wonsam-myeon, Cheoin-gu.”

Mayor Lee noted that during a visit to the Netherlands in late October, he discussed ways to foster ties with Veldhoven, where ASML is headquartered. “The two cities, both committed to promoting the semiconductor industry, agreed to pursue exchanges and cooperation,” he said.

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