Samsung’s Yongin Project Moves into High Gear: Land Deal Closed, Investment Intensifies

The recent land sales contract signed in December 2025 between Samsung and LH marks a pivotal shift from planning to execution for Yongin’s Advanced System Semiconductor National Industrial Complex. This contract signifies that key land parcels have been committed, allowing construction phases to begin on schedule, as long as regulatory and compensatory bottlenecks are managed efficiently.[1search0]

Samsung’s investment scope—raised to 360 trillion KRW—indicates both ambition and escalation. It reflects a broadened development plan, growing from five to six fabs, and an expansion of land area through inclusion of relocation zones. These moves suggest confidence in system semiconductor demand and an urgency to advance Korea’s foundry competitiveness.

However, challenges remain significant. Infrastructure for water and power is essential: 650,000 tons of industrial water per day is required, and total power demand is estimated at up to 9 GW for Samsung and SK Hynix combined. Regulatory approvals have been expedited, including environmental assessments and complex designation processes, but political debate over relocation could introduce delays.[1search7][1search4]

Strategic implications of this development are broad: Korea is positioning Yongin as a global hub for system semiconductors and signal logic fabs (sub-2nm), potentially narrowing technology gaps with TSMC and Intel. Locally, the economic footprint could include nearly two million jobs and hundreds of trillions in induced output. But timing and execution risk remain key: missed milestones in 2026-2030 could erode competitive advantage.