A bird's-eyed depiction of the Yongin semiconductor national industrial complex / Courtesty of Ministry of Land, Infrastructure and Transportation

The Korean government designated a semiconductor cluster in Yongin, located on the southern outskirts of Seoul, as a national industrial complex, aiming to create one of the country's biggest chip manufacturing hubs by 2030, the land ministry said Thursday.

According to the ministry, the plan for the Yongin national industrial park was approved three months ahead of schedule to expedite the overall process, reflecting the government's commitment to accelerating administrative procedures and ensuring construction begins by December 2026. Groundbreaking was initially targeted for June 2030.

Samsung Electronics, the world's largest memory chipmaker, already operates several chip facilities in Yongin and surrounding areas, making the region a strategic location for the new complex. Its chipmaking rival SK hynix has also unveiled investment plans to create chip facilities in Yongin.

The Yongin semiconductor national industrial complex is a mega-sized national strategic project that will span 7.28 million square meters. It will house six large-scale semiconductor fabs, three power plants and over 60 small and medium-sized suppliers specializing in materials, parts and equipment.

With a total private investment of 360 trillion won ($246.4 billion), the complex is expected to create 1.6 million jobs and generate 400 trillion won in added value.

The government has also included plans to develop a residential town accommodating 16,000 households, along with parks and other essential facilities to support the growing workforce.

Additionally, transportation infrastructure will be expanded, including expressways and railways, to manage the anticipated rise in demand by 2030.

The first semiconductor fab in the industrial park is expected to start operation in 2030.

"We will continue to build the Yongin national industrial complex as quickly as possible, and do our best to make it a landmark industrial complex in Korea," Minister Park Sang-woo said.

Samsung Electronics said it welcomes the early designation and asked for the government's full-fledged support for the chip industry, which faces strong headwinds in the global competitive market.

"We ask for continued interest and support so that the Yongin industrial complex can be established on schedule and contribute to the development of the Korean semiconductor industry and the national economy," said Kim Yong-kwan, president of Samsung Electronics' chip division. (Yonhap)