Gyeonggi Province Prepares 'Gyeonggi Semiconductor Cluster Support Plan'

[Suwon Ilbo=Reporter Kim A-hyun] Gyeonggi Province announced on the 15th that it has taken active steps to prepare a support plan in response to recent investment announcements by SK Hynix of 122 trillion won in the Yongin Semiconductor Cluster and Samsung of 133 trillion won in system semiconductors.

The province has decided to establish a dedicated team and prepare long-term semiconductor industry support measures including the development of win-win cooperation plans, based on the judgment that the domestic semiconductor industry has a significant impact on securing South Korea's future growth engines.

This is because nearly half of Korea's semiconductor exports last year—548 billion dollars (43.3%) out of 1.267 trillion dollars—came from Gyeonggi Province, and 64.3% of domestic semiconductor companies are located in the province. Among 252 domestic semiconductor companies, 162 are headquartered in Gyeonggi Province, more than three times the 50 companies in Seoul, which ranks second.

Currently, Gyeonggi Province is home to Samsung Electronics' Giheung and Hwaseong plants, Samsung Semiconductor's Pyeongtaek Plant 1 located in the Pyeongtaek Goduk International Industrial Complex, and SK Hynix's semiconductor complex in Icheon. Samsung's Giheung and Hwaseong plants employ 41,000 people across 10 production lines, Pyeongtaek Plant 1 has 4,000 employees on one line, and SK Hynix's Icheon plant employs 18,000 people across 2 lines.

With the addition of the newly confirmed SK Hynix Yongin plant, Samsung Semiconductor's Pyeongtaek Plant 2 scheduled to begin operations in March next year, and SK Hynix's Icheon M16 plant, the 'Gyeonggi Semiconductor Cluster'—a world-class semiconductor production base employing up to 84,000 people across 19 production lines by 2030—is expected to emerge.

In addition, the Gyeonggi Yongin Platform City, which Gyeonggi Province and Yongin City agreed to jointly pursue on the 7th, is expected to support the development of the Gyeonggi Semiconductor Cluster.

Yongin Platform City is planned to be built on a 2.7㎢ (approximately 830,000 pyeong) site encompassing Boseong-dong, Mabuk-dong, and Singal-dong in Giheung-gu, Yongin City, and will be a future-oriented comprehensive self-sufficient city that integrates advanced industry, commerce, residential, and culture and welfare spaces.

In the vicinity of Yongin Platform City are headquarters and manufacturing and research and development (R&D;) facilities of major pharmaceutical companies such as Green Cross and Ilyang Pharmaceutical. The nearby Mabuk Research Complex (R&D;) hosts nine companies including Hyundai Mobis and Hyundai Motor Research Institute, providing a solid industrial foundation. Accordingly, the province is anticipating synergy effects with the 'Yongin Semiconductor Cluster' now that SK Hynix's relocation has been confirmed.

Accordingly, the province plans to proceed with what it can undertake to ensure smooth development of the Gyeonggi Semiconductor Cluster and will prepare additional diverse support measures.

To this end, the province held a joint support task force meeting on the 17th of last month with the Deputy Governor for Administration and the Deputy Governor for Peace serving as co-chairs, with 11 departments including the Investment Promotion Division participating. The province decided to operate a one-stop close support system at the provincial level to support permits and licenses such as agricultural land and forest conversion, as well as infrastructure expansion including electricity, water supply, and roads.

Additionally, the province formed a semiconductor industrial park task force team in the Provincial Industrial Policy Division to support permits and licenses. The province views the job creation and local economic revitalization effects of the Gyeonggi Semiconductor Cluster as significant, and is considering converting the task force team into a permanent organization through a reorganization scheduled for July and examining ways to support the entire province's semiconductor clusters.

The province is also preparing cooperative measures with SK Hynix for the successful development of the Yongin Semiconductor Cluster. The province plans to support the establishment of a win-win cooperation center within the Yongin Semiconductor Cluster that includes startup research spaces and training facilities for large and small-medium enterprises, as well as the creation of a win-win fund to provide financial support to technology innovation companies with expertise in semiconductor equipment and materials and components technology.

Park Shin-hwan, head of the Economic and Labor Division of Gyeonggi Province, said, "The semiconductor industry has significant ripple effects on job creation, economic growth, and enhancing the competitiveness of domestic companies. In that sense, the success of the Gyeonggi Semiconductor Cluster is very important," and added, "Rather than unilateral support for a single company, we are considering multifaceted measures to foster an exemplary win-win cluster where large and small-medium enterprises grow together, and to enable collaborative growth with small and medium enterprises based on this foundation."