Yongin Chip Complex Races to Clear Mountain by Next November

Site Preparation Pulled Forward to November 2027 From December 2028 50 Million Tons of Soil and Rock to Be Moved as Blasting Accelerates

Finance|
|
By Woo Young-taktak@sedaily.com
||
Pyodaebong peak on Dalbongsan Mountain, photographed near the planned site of the Yongin semiconductor national industrial complex. The area has been designated a priority development zone where two Samsung Electronics chip fabs will be built, with blasting and leveling work set to run through November next year. Photo by Woo Young-tak - Seoul Economic Daily Finance News from South Korea
Pyodaebong peak on Dalbongsan Mountain, photographed near the planned site of the Yongin semiconductor national industrial complex. The area has been designated a priority development zone where two Samsung Electronics chip fabs will be built, with blasting and leveling work set to run through November next year. Photo by Woo Young-tak

YONGIN — "By November next year, the mountain will be gone. This rice will, in effect, become semiconductor wafers."

On the 30th of last month, logging crews were clearing trees on a hillside slated for blasting at the site of the national semiconductor industrial complex in Yongin's Cheoin district, Gyeonggi Province, while rice in nearby paddies was ripening to a golden hue. On the roughly 7.78 million-square-meter site, where Samsung Electronics (005930) plans to build six chip plants, a race against the clock has begun with the work of cutting down the mountain and hauling away the earth.

The Korea Land & Housing Corporation (LH) is pushing to move up completion of the initial site preparation to November next year from the end of 2028 as originally planned, in line with a request from Samsung Electronics. LH will sign a construction contract with a consortium led by Daewoo Engineering & Construction (047040) in the middle of this month and begin work on the priority zone this month, two months earlier than initially scheduled. The first section covers 3.45 million square meters, with estimated construction costs of 1.086 trillion won (about $780 million).

The key challenge on the ground lies in leveling the mountain to prepare the site. According to LH, roughly 50 million tons of soil and rock must be handled, six times the volume used to fill in Yeouido. Moving soil from the first section to the neighboring second section alone will require 2 million dump truck trips, LH said. Even if the mountain is cut quickly, follow-up work stalls if the soil cannot be removed on schedule.

The Daewoo Engineering & Construction consortium has proposed cutting the mountain in terraced steps from the summit down while blasting at 13 locations simultaneously. It plans to use larger rock-drilling equipment and raise the height of each blasting bench to increase the volume handled in a single round. The consortium also plans to add soil-hauling routes, which had been concentrated in one place, to ease bottlenecks where vehicles pile up.

Procedures will also overlap. Cultural heritage surveys will begin on sections where logging has been completed, while compensation, permits and construction tendering proceed in parallel. Compensation procedures have been completed for 99% of the total area of private land — 43% through negotiated purchase and 56% through filings for expropriation rulings. To ensure safety alongside speed, the project will deploy collision-prevention systems for equipment and workers, as well as four-legged walking robots and drones.

"To build the national semiconductor industrial complex early, which is a national task, we are breaking away from existing work practices and aggressively pursuing norm-breaking innovation, such as boldly running sequential procedures in parallel, adding momentum to the project," LH President Lee Sung-hoon said. "We will provide unwavering support for the successful completion of the government's three mega-projects."

Companies in this story

Original reporting by Woo Young-tak for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

Watch · Seoul Economic Daily

More →
4:17

AI KEY

Preview
Korean Corporate Intelligence HubKOSPI · KOSDAQ · 12 sectors

A live, cap-weighted view of every KOSPI and KOSDAQ sector, with same-day Korean reporting distilled by company — built for foreign investors, correspondents and analysts who need to scan Korea before the next session.

Korea Company Atlas

Preview
Market Ontology · The Feedback LoopKFTC 2025 · 92 groups · 121,954 articles

An English ontology of the Korean market — how companies, the media, the government and the National Assembly move each other in a loop. Korea's named controlling persons and designated business groups are a mechanism, not a risk to be priced blind.

SIGNAL

Now live
English Edition · Capital MarketsM&A · IPO · PE · Fund Flows

SIGNAL English Edition is live — Korea's deal desk reporting in English. M&A, IPOs, private equity and fund flows, covered daily for global institutional investors. Browse free; subscriber-only scoops at the 50% intro rate.