Yongin Semiconductor Complex 'Permit Risk' Resolved... Water Facility Construction to Start Within the Year

Yeoju City Agrees to Cooperate on Permits for Yongin Semiconductor Complex

SK Hynix Headquarters, Icheon-si, Gyeonggi-do. [Image source=Yonhap News]

[Asia Economy Sejong=Reporter Lee Jun-hyung] The 'permit risk' surrounding SK Hynix's semiconductor cluster in Yongin, Gyeonggi Province has been resolved. Yeoju City decided to cooperate in the approval of the water supply facilities for the Yongin semiconductor cluster after persuasion from the government and the National Assembly. SK Hynix plans to start construction of the water supply facilities for the Yongin semiconductor cluster within this year.

On the afternoon of the 21st, the Ministry of Trade, Industry and Energy announced that it would hold a 'Win-win Cooperation Agreement Ceremony for the Successful Establishment of the Yongin Semiconductor Cluster' at the National Assembly main building in Seoul. The ceremony will be attended by Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy, Jeong Jin-seok, Emergency Committee Chairman of the People Power Party, Seong Il-jong, Policy Committee Chairman of the People Power Party, and Lee Chung-woo, Mayor of Yeoju City. Prior to the ceremony, Yeoju City completed all permit procedures related to the Yongin semiconductor cluster on the 17th.

The Yongin semiconductor cluster is a large-scale project in which SK Hynix is investing 120 trillion won to develop approximately 4.31 million square meters of land in Cheoin-gu, Yongin City. The economic added value of the Yongin semiconductor cluster is estimated at 188 trillion won, with job creation expected to reach about 17,000. SK Hynix began site adjustment work in April aiming for completion in 2027 and completed permit consultations for power infrastructure construction in the first half of this year.

A bird's-eye view of SK Hynix's semiconductor cluster in Yongin.
[Photo by SK Hynix]

Opposition to Permits from Yeoju City... Groundbreaking Ceremony Delayed

However, the construction of the Yongin semiconductor cluster had not progressed rapidly until recently. This was because Yeoju City, which holds the key to supplying industrial water, opposed the permit for the water facilities of the Yongin semiconductor cluster. Yeoju City holds the permit authority for installing the Namhan River pipeline, which is essential for drawing industrial water required in semiconductor processes. The groundbreaking ceremony for the Yongin semiconductor cluster, originally scheduled for July, was repeatedly postponed.

This is why the Ministry of Trade, Industry and Energy formed the 'Yongin Semiconductor Cluster Water Facilities Task Force (TF)' in August this year. The ministry coordinated positions between Yeoju City and the government through the TF, which included the Ministry of Land, Infrastructure and Transport, the Ministry of Environment, Yeoju City, and SK Hynix. In the National Assembly, Chairman Seong operated the 'Yongin Semiconductor Cluster Party-Government Meeting' and conducted consultations with Yeoju City.

Water Facilities Construction Within the Year... "Completion Possible by 2027"

Ultimately, Yeoju City decided to cooperate with the government and the National Assembly in approving the Yongin semiconductor cluster. Accordingly, the government plans to consider measures such as relaxing the scale of new or expanded factories without wastewater discharge in the metropolitan area from 1,000㎡ to 2,000㎡ and supporting water quality conservation projects as part of win-win cooperation with Yeoju City. SK Hynix is reviewing regional support projects such as promoting rice consumption in Yeoju City and fostering semiconductor workforce development.

With the permit risk resolved, SK Hynix plans to start construction of the water supply facilities for the Yongin semiconductor cluster within this year. The Ministry of Trade, Industry and Energy expects that the completion of the Yongin semiconductor cluster around 2027 is feasible as planned by SK Hynix. A ministry official said, "With the resolution of Yeoju City's permit issues, all administrative procedures for establishing the Yongin semiconductor cluster can be finalized," adding, "Once construction fully begins, we expect to achieve the original goal of completion in 2027."

Minister Lee emphasized regulatory improvements for the semiconductor cluster at the agreement ceremony. He said, "To activate investment, we will actively promote the establishment of national industrial complexes, designation of specialized complexes, and nurturing of excellent human resources," and added, "We will closely cooperate with the National Assembly to amend the National Advanced Strategic Industry Act, including strengthening special provisions for expedited permit processing to prevent delays in industrial complex establishment permits."

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