Six LNG Power Plants in Yongin Semiconductor Complex... 14.7 Trillion Policy Finance for Four Major Industries

The 4th National Advanced Strategic Industry Committee Meeting Held

SK Hynix semiconductor production site. [Image source=Yonhap News]

The government has announced a plan to supply 10 gigawatts (GW) of electricity to the Yongin semiconductor specialized complex, where a power supply shortage is anticipated. Policy financing amounting to 14.7 trillion won will be provided next year for the four major industries: semiconductors, displays, secondary batteries, and bio.

On the 21st, the government held the 4th National Advanced Strategic Industry Committee meeting in writing and announced that it reviewed the 'Support Plan for Advanced Strategic Industry Specialized Complexes and Next Year’s Policy Financing Support Plan,' which centers on these measures.

The government plans to provide 39.2 billion won next year to Gumi (semiconductors), Pohang, and Ulsan (secondary batteries), following this year’s 100 billion won support for Yongin and Pyeongtaek (semiconductors). For other specialized complexes whose business plans have not yet been finalized, infrastructure budgets will be supported from 2025 once plans are confirmed. The government also plans to identify and resolve 20 regulations that hinder the expansion of tenant industries and the development of specialized complexes.

For the Yongin semiconductor specialized complex, the government plans to supply 3GW of power through liquefied natural gas (LNG) power generation by 2036, and more than 7GW via long-distance transmission lines after 2037. To build the national power grid in a timely manner, the enactment of the 'Special Act on Expansion of National Institution Power Grid' will also be pursued.

The government estimates that more than 15GW of power is needed for seven advanced industrial specialized complexes nationwide. Among these, the power demand for the Yongin semiconductor complex alone exceeds 10GW. Initially, from 2030 to 2036, six LNG power plants will be relocated and constructed within the industrial complexes to replace aging coal plants.

Specifically, the coal-fired power plants of East West Power (Dangjin) in 2030, South Power (Hadong) in 2031, and West Power (Taean) in 2032 will be closed, and LNG power plants will be established in Yongin instead. The government plans to begin construction of the power plants in the third quarter of 2027 to coincide with the scheduled operation of fabs (semiconductor manufacturing plants) by the end of 2030. From 2037, the government plans to supply more than 7GW of power to the Yongin semiconductor cluster through the establishment of a national power expressway (ETX).

To supply water to the Yongin semiconductor specialized complex, river reclaimed water and Paldang Dam water will be utilized from 2031, and Hwacheon Dam water from 2035. An official from the Ministry of Trade, Industry and Energy stated, "For the other six specialized complexes, we will ensure no disruption in infrastructure support by utilizing completed substations, expanded water treatment plants, and existing public wastewater facilities."

On the same day, the government decided to provide 14.7 trillion won in policy financing next year to promote investment by advanced companies in the four industries: semiconductors, displays, secondary batteries, and bio. Additionally, venture capital jointly raised by the public and private sectors, such as the Innovation Growth Fund, Semiconductor Ecosystem Fund, and Supply Chain Response Fund, will be provided to companies in need of funds. The government plans to initiate the selection process within the year to designate a bio specialized complex next year. Expansion of the scope of advanced strategic industries will also be considered.

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