Gov't, Samsung agree to fast-track Yongin chip industrial complex

Industry

Published: 17 Apr. 2024, 18:53

Gov't, Samsung agree to fast-track Yongin chip industrial complex

Attendees at the agreement signing ceremony for the advanced industrial chip complex in Yongin, including Land Minister Park Sang-woo, fourth from left, and Samsung Electronics President Nam Seok-woo, second from right, pose for a photo at FKI Tower in Yeouido, western Seoul, on Wednesday. [NEWS1]

The Korean government will expedite the land preparation process of the chip industrial chip complex in Yongin, Gyeonggi, to halve the amount of time required to three and a half years.

The central and municipal governments as well as Samsung Electronics and the state-run Korea Land and Housing Corporation signed an agreement Wednesday on the chip project that will reduce the seven-year time frame with a goal of opening in 2030.

The environmental impact assessment process will be fast-tracked along with prompt land compensation to break ground for the cluster in 2026 as planned.

"Ministries and municipal governments play crucial roles in maximizing companies' investments at the right time so that Korea's semiconductor industry, the national growth driver, can strengthen its presence in the global market," said Land Minister Park Sang-woo.

"By securing sufficient infrastructure, we will strive to establish a successful model for a national industrial complex."

Wednesday's agreement includes the clearing of a water resource protection area in Songtan, Pyeongtaek, in order to supply water to the cluster construction site as well as the nearby residential area in a timely manner. It will also develop infrastructure in an adjacent city to accommodate a quality workforce.

The Korean government last year announced its vision to build the world's largest chip cluster in the Gyeonggi area, which includes an advanced chip industrial complex in Yongin in collaboration with Samsung Electronics.

The electronics powerhouse pledged 300 trillion won ($217 billion) to build five chip fabrication plants in the complex by 2042 and also attract some 150 material, component and equipment companies.

"Today's event is expected to serve as a catalyst to accelerate the process of establishing Yongin's national industrial complex," said Kang Kyung-sung, vice minister at the Ministry of Trade, Industry and Energy.

"With the chip mega cluster, through an investment of 622 trillion won positioning Yongin's national industrial complex and general industrial complex as well as Godeok's industrial complex at the center, we will do our best to make Korea a global chip hub."

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]