Sangil Lee: "Presidential Decree for Special Act on Semiconductors Will Undermine Yongin Investment and Shrink Ecosystem... Must Be Scrapped Immediately"

Sangil Lee, Yongin Mayoral Candidate, Criticizes Semiconductor Special Act Decree
“Toxic Clause Shakes the Future of Yongin Semiconductors... Only China and Japan Will Benefit”
“Metropolitan Area Exclusion Decree is Anachronistic... Damaging Kor

Lee Sang-il, candidate for mayor of Yongin Special City (People Power Party), strongly criticized the government's plan to push forward the enforcement ordinance of the Semiconductor Special Act, arguing, "Any enforcement ordinance that could dampen semiconductor investment or shrink the ecosystem in Yongin must be immediately scrapped."

Lee Sang-il, candidate for mayor of Yongin Special City (People Power Party), is strongly criticizing the government's plan to promote the enforcement ordinance of the Semiconductor Special Act. Photo provided by Lee Sang-il

On the 16th, Lee stated that the government is reportedly set to announce within this month the enforcement ordinance of the “Special Act on Strengthening and Supporting the Competitiveness of the Semiconductor Industry,” which specifies that only regions outside the Seoul metropolitan area will be eligible for designation as semiconductor clusters. He said, "This will ruin the nation’s key industry, semiconductors, and inflict serious harm on our national economy."

He further pointed out, "If the enforcement ordinance is implemented, countries such as China and Japan, which are chasing Korea in the semiconductor sector, will be delighted. It can be interpreted as meaning that in order to receive government support, semiconductor production lines (fabs) must be built in non-metropolitan regions."

According to previous media reports, the Ministry of Trade, Industry and Energy is reviewing ways to explicitly specify “regions outside the Seoul metropolitan area” as eligible for semiconductor cluster designation in the enforcement ordinance of the Special Act, and is expected to announce the ordinance within this month.

Lee expressed concern that, if the enforcement ordinance is realized, there is a possibility that government support for the Yongin Semiconductor Cluster—where Samsung Electronics and SK hynix are pursuing large-scale investment projects—could be reduced. He said, "The government, which is responsible for providing essential infrastructure such as power and water supply and expanding surrounding road networks for the Yongin cluster, might neglect or delay its responsibilities in Yongin by prioritizing non-metropolitan areas."

He also argued, "If the government draws a line with the enforcement ordinance by declaring ‘semiconductor clusters must be in non-metropolitan areas,’ it could make it impossible to legally designate or support clusters for semiconductor materials, parts, and equipment (commonly known as ‘SoBuJang’) and R&D campuses, which need to be expanded in connection with the Samsung Electronics and SK hynix clusters in Yongin. The enforcement ordinance appears intended to constrain not only the two anchor companies, Samsung Electronics and SK hynix, that are driving the Yongin semiconductor projects, but also the semiconductor materials, parts, and equipment companies."

Lee also directly addressed President Lee Jaemyung, stating, "During the presidential election, you promised strong support for semiconductor projects in Yongin, including the Yongin National Industrial Complex. However, the government and ruling party continue to hinder—or even attempt to undermine—these projects. The President should review his campaign pledges and ask himself whether he is fulfilling the promises made to the public."

He went on to say, "Instead of easing regulations and providing infrastructure so that companies can proceed with investments, the government is hindering free corporate investment through administrative regulations, which is an anachronism. Not only is the government ignoring the ‘optimal location’ that would allow the existing semiconductor ecosystem to expand and strengthen its competitiveness, but this problematic enforcement ordinance is set to undermine that competitiveness. The government must immediately scrap this ordinance, which could be described as detrimental to the nation."

He added, "The government should remove the harmful clause of excluding the Seoul metropolitan area and prepare a new enforcement ordinance that can contribute to the development of the semiconductor industry. The future of Yongin’s semiconductor industry is directly linked to the future of Korea’s semiconductor sector, and this must be kept in mind."

The SK hynix Yongin Semiconductor Cluster being developed in the Wonsam-myeon area of Cheoin-gu, Yongin City. Provided by candidate Lee Sangil

He further expressed concern, saying, "If the government implements policies in line with the enforcement ordinance, semiconductor investment in Yongin and the southern Gyeonggi region will be significantly dampened, and the semiconductor ecosystem in these regions will shrink, ultimately reducing the competitiveness of Korea’s semiconductor industry."

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