Mayor Lee Sang-il of Yongin Issues Order for "Prudent Budget Planning in Preparation for Semiconductor Cycles"

Despite the semiconductor boom that plays a major role in increased tax revenues, concerns have been raised that prudent budget planning should be implemented to restrain populist spending in preparation for operating deficits caused by semiconductor cycles.

Mayor Lee Sang-il of Yongin Special Decree City ordered senior civil servants on the 14th to exercise prudent budget planning that restrains populist spending during the third report meeting on major business promotion plans for 2027 held in the city hall video conference room.

The mayor stated, "While the city's finances are improving due to the semiconductor boom, Samsung Electronics and SK Hynix will likely experience similar profit and loss fluctuations due to semiconductor cycles," and emphasized, "We need to prepare for times when tax revenues will decline during semiconductor downturns."

The mayor continued, "When money comes in, we should build up railroad funds and semiconductor cooperation funds," and said, "If we indiscriminately distribute universal welfare spending during the boom period, it will become unsustainable later. Budget planning should be cautious, but we should be bold in what needs to be done promptly."

At the report meeting, discussions were held on progress and countermeasures for the Wonsam-myeon Yongin Semiconductor Cluster General Industrial Complex and the Idong and Namsa-eup Advanced System Semiconductor Cluster National Industrial Complex projects.

Additionally, the mayor requested preparation of response measures anticipating the influx of a large construction workforce and speedy administrative processing.

The mayor explained, "Construction work on half of SK Hynix's first fab has already progressed significantly, and work on the remaining half of the first fab has begun, with construction of the second fab scheduled to start in the first half of next year. Currently, about 24,000 construction workers are arriving, and we expect more than 30,000 to arrive next year."

The mayor added, "It appears the national industrial complex site development will break ground within the year, and after about a year passes, fab construction will begin, so a large number of construction workers are expected to gather. I urge related departments to prepare countermeasures in advance by operating task forces."

Previously, the city expedited construction permits through a task force related to SK Hynix's first fab construction, and SK responded by planning and implementing the use of 450 billion won in local resources as a gesture of gratitude for mutual prosperity, focused only on construction work for half of the first fab.

The city also secured hub parking lots to address habitual traffic congestion and illegal parking problems in nearby areas resulting from the influx of large construction workforces.

The mayor emphasized on the day that it is necessary to improve work processing methods to match the city's rapid development.

The mayor stated, "Good suggestions came up at a recent Cheorin-gu Office staff meeting, and they mentioned that as we establish major business plans and implement new projects every year, workloads accumulate. I ask supervisors to carefully identify and reduce workloads where possible."