Lee Sang-il, Mayor of Yongin, "Tax Benefits Needed for Residents and Companies Relocating to System Semiconductor Complex"

"Support Measures Needed for Rapid Industrial Complex Development"
Request for Exemption from Preliminary Feasibility Study for Swift Expansion of National Road 45

Lee Sang-il, Mayor of Yongin City, Gyeonggi Province, raised the necessity of tax reductions for local residents and businesses to ensure the successful establishment of Samsung Electronics' 'Yongin Advanced System Semiconductor Cluster National Industrial Complex.'

Lee Sang-il, Mayor of Yongin (second from the right), is proposing measures to expand support for relocated residents and companies within the advanced system semiconductor cluster national industrial complex at the 6th National Industrial Complex Government-wide Promotion Support Group meeting held at the Ministry of Land, Infrastructure and Transport building on the 22nd.
[Photo by Yongin City]

Mayor Lee made these remarks on the 22nd at the '6th National Industrial Complex Government-wide Promotion Support Group' meeting held in the main conference room of the Ministry of Land, Infrastructure and Transport's Sejong Government Complex. Presided over by Jin Hyun-hwan, First Vice Minister of the Ministry of Land, Infrastructure and Transport, the meeting was organized to review the status of 15 national industrial complex candidate sites nationwide and discuss the smooth progress of the projects. The advanced system semiconductor complex, which will house Samsung Electronics' production lines and companies related to semiconductor materials, parts, and equipment (SoBuJang), will be developed over an area of 7.28 million square meters in the areas of Idong and Namsa-eup, Cheoin-gu.

Through a petition submitted to the Ministry of Land, Infrastructure and Transport, Mayor Lee requested that "sufficient compensation and various tax benefit measures through related legal amendments must be prepared for citizens and companies who must relocate due to the designation of the industrial complex site."

On the same day, he also proposed specific support measures such as capital gains tax reductions on land compensation and corporate tax reductions for relocating companies. Mayor Lee explained, "Residents relocating due to the industrial complex face issues such as rising construction costs, soaring land prices, and tax burdens," adding, "It is necessary to expand the capital gains tax reduction rate for land used for public projects." Specifically, he suggested reviewing the establishment of a provision allowing additional deductions for land compensation related to public projects under the 'Income Tax Act' concerning long-term holding special deductions.

According to the city, a total of 82 companies must relocate due to the industrial complex development. Mayor Lee added, "As a result of a demand survey conducted among relocating companies, the majority expressed a desire for the government to develop a relocation industrial complex," emphasizing, "Just as residential land is prepared for relocating residents, space must also be prepared for companies."

He also mentioned the need for financial support for relocating companies' construction and equipment purchases. To this end, he requested raising the credit guarantee limit of the Regional Credit Guarantee Foundation from the current 800 million KRW to 1.5 billion KRW exclusively for relocating companies and asked for consideration of additional policy fund support measures.

Meanwhile, Mayor Lee emphasized the prompt establishment of a connected transportation system for the industrial complex during the meeting. He stated, "Since an increase in construction workers during the industrial complex development and employees of resident companies is expected, and given that National Route 45 already experiences severe traffic congestion during peak hours, if the road is not expanded quickly, a traffic crisis is anticipated," calling for an exemption from the preliminary feasibility study for the road expansion project.

Mayor Lee stressed, "The completion of the National Route 45 expansion project is scheduled for 2031, one year later than the first operation of Samsung Electronics' production line within the industrial complex in 2030," and urged, "Traffic congestion will be very severe during this period, so the expansion of National Route 45 must be expedited."

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