Yongin City Expands Land Compensation for Relocators to I-dong and Namsa Semiconductor Complexes

Exemption of Acquisition Tax and 40% Reduction of Capital Gains Tax in Large-Scale Land Compensation
"Entrustment to Original Residents by Private Contract for Removal of Obstacles"

Yongin City in Gyeonggi Province will expand the scale of land-for-land compensation as part of relocation measures for original residents in the 'Yongin Advanced System Semiconductor Cluster National Industrial Complex,' which is being developed over an area of 7.78 million square meters in the Cheoin-gu I-dong and Namsa-eup areas.

Location map of the 'Yongin Advanced System Semiconductor Cluster National Industrial Complex' in Cheoin-gu, Yongin City. Provided by Yongin City.

Yongin City announced on the 3rd that, to ensure the successful establishment of the system semiconductor industrial complex, which received final approval from the Ministry of Land, Infrastructure and Transport at the end of last year, it is consulting with the government, Korea Land and Housing Corporation (LH), and others to provide reasonable compensation and smooth relocation for the residents and companies subject to land acquisition.

Through consultations with the Ministry of Land, Infrastructure and Transport, the city decided at the end of last year to create a 500,000㎡ exclusive industrial complex for relocating companies in the Chang-ri and Wanjang-ri areas of Namsa-eup, located in the northwest of the industrial complex. Accordingly, the total planned size of the industrial complex, which was originally 7.28 million㎡, has been expanded to 7.78 million㎡. Earlier, for relocation residential sites to be used for land-for-land compensation for original residents, 368,160㎡ was designated in the southwest of the industrial complex in November 2023.

With the Ministry of Land, Infrastructure and Transport's approval of the industrial complex development plan, procedures for compensation and relocation will be fully underway starting this year. Mayor Lee Sang-il of Yongin said, "The system semiconductor industrial complex was completed from designation to approval in 1 year and 9 months, which is more than half shorter than the usual 4 years and 6 months required for existing administrative procedures. Since speed is vital for competitiveness in the semiconductor industry, we will work with the government to ensure that compensation and relocation procedures proceed swiftly."

The city explained that, especially through consultations with the government and LH, it has decided to expand land-for-land compensation for original residents subject to land acquisition. When receiving land-for-land compensation, acquisition tax is exempted, and capital gains tax is reduced by 40%.

Measures to support the housing and livelihoods of original residents subject to acquisition have also been prepared. For tenant households that cannot move to relocation residential sites, LH will purchase about 100 residential units near the national industrial complex and supply them as public rental housing. LH plans to support tenant residents to live there for up to 20 years at prices ranging from 30% to 80% of market rates.

During the industrial complex development process, LH will entrust projects such as ▲removal of obstacles ▲transplanting of trees ▲closure of groundwater wells ▲relocation of unclaimed graves to resident organizations centered on the Original Residents Countermeasure Committee through private contracts, thereby helping local residents generate income. The government and city also plan to establish employment creation support policies for original residents, such as encouraging local resident employment by new companies moving into the national industrial complex.

To facilitate smooth compensation negotiations, the city will hold regular monthly meetings of the 'Public-Private-Community Cooperation Council,' composed of the city, original residents, relocating companies, the Ministry of Land, Infrastructure and Transport, LH, and others, starting this year, and will use ad hoc consultations as a channel for compensation and relocation discussions and resolving civil complaints.

To ensure smooth development of the industrial complex, the city will also actively promote expansion of surrounding transportation networks this year. National Route 45, which passes through the I-dong Public Housing District being developed as a new city behind the industrial complex, will be expanded from 4 lanes to 8 lanes over a 12.5 km section from Daechon Intersection in Cheoin-gu to Jangseo Intersection in Yangseong-myeon, Anseong City, with construction scheduled to be completed by 2030, the start of operation of Samsung Electronics' first production line (fab). Additionally, the extension project of the Gyeonggang Line, branching from Gyeonggi Gwangju Station to connect to the industrial complex, will be actively pursued.

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