Yongin Semiconductor Hub Faces Political Challenges as Lawmakers Push for Regional Shifts

Yongin, South Korea’s burgeoning semiconductor hub, is facing unexpected political headwinds as lawmakers propose relocating parts of the project to other regions, sparking a direct rebuke from Yongin Mayor Lee Sang-il. The dispute highlights the tension between regional development and the need for a cohesive national semiconductor strategy.

Mayor Lee Sang-il Defends National Project

Mayor Lee Sang-il has publicly criticized lawmakers Shin Jeong-hoon and Ahn Ho-young for suggesting the relocation of semiconductor manufacturing to Jeollanam and Jeonbuk provinces, respectively. Lee argues that such proposals demonstrate a lack of understanding of the semiconductor industry’s core principles – integration and ecosystem development – and could jeopardize South Korea’s competitiveness in the global market. He emphasized that the ongoing investments by Samsung Electronics and SK Hynix in Yongin are a “national project” crucial to national interests.

“the ruling party politicians in charge of running the government have no idea why they are emphasizing ‘integration’ and ‘ecosystem’ in semiconductors, which are national strategic industries,” Lee stated on Facebook according to reports. He further cautioned against prioritizing regional votes over the broader national interest.

Lawmakers Advocate for Regional Development

Representative Shin Jeong-hoon publicly stated his intention to attract semiconductor processes to Jeollanam-do and Gwangju Unified Special City, while Representative Ahn Ho-young framed the Yongin project as an opportunity for Jeonbuk province. These statements prompted Lee’s strong response, which accused the lawmakers of “ignorance” and potentially undermining a critical national project.

Yongin’s Semiconductor Expansion

Yongin is currently developing two major semiconductor complexes: a high-tech system semiconductor national industrial complex in Idong and Namsa-eup, and a general industrial complex, the SK Hynix Yongin Semiconductor Cluster, in Wonsam-myeon. As reported by The Korea Herald, these developments are central to South Korea’s ambitions to turn into a global semiconductor powerhouse. Regulatory changes in 2024, including the removal of restrictions on land development, have freed up over 66 square kilometers for industrial expansion.

Concerns Over Disruption to Supply Chain

Mayor Lee’s concerns echo broader industry anxieties about fragmenting the semiconductor supply chain. In a period of intense global competition, particularly in nanometer-level technology, dispersing production lines could weaken South Korea’s position. He also criticized the silence of ruling party members from the Yongin region regarding these proposals.

Feasibility Study Under Scrutiny

Adding to the controversy, the Great Social Reform Committee under the Prime Minister’s Office included a “Feasibility Study of Yongin Semiconductor National Industrial Complex” as an agenda item for a public forum in Busan. This move raised concerns that the project’s fundamental viability was being questioned, despite its designation as a national priority.

Looking Ahead

The dispute underscores the need for a clear and consistent national semiconductor strategy. Mayor Lee Sang-il’s strong stance reflects a determination to protect Yongin’s role in this strategy and ensure that political considerations do not compromise South Korea’s long-term competitiveness in the global semiconductor industry. The situation is expected to prompt further debate about the balance between regional development and national economic priorities.