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Ruling in Yongin chip complex suit could expose Samsung trade secrets

Published: 17 Sep. 2025, 19:38 Updated: 17 Sep. 2025, 19:52

Construction continues at the site of the Yongin Semiconductor Cluster in Cheoin District, Yongin, Gyeonggi, on Jan. 15, 2024. [YONHAP]

A clash unfolded at the Seoul Administrative Court between the bench and the defense over Samsung Electronics’ trade secrets on Thursday, when a dispute arose during the first hearing of a lawsuit filed by environmental groups seeking to nullify or revoke government approval of a semiconductor complex in Yongin, Gyeonggi.

The court had initially planned to conclude the case in a single session, but scheduled additional hearings as new issues surfaced. Coming on the same day that the court ruled against the Saemangeum airport project, observers say another major state-led initiative has now been put to the test.

In March, climate civic groups filed suit against the Ministry of Land, Infrastructure and Transport, arguing that its approval of the Yongin Advanced System Semiconductor Cluster National Industrial Complex was unlawful.

They claimed the ministry failed to properly calculate greenhouse gas emissions and set reduction targets as required by the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis. The project, backed by Samsung Electronics with an investment of 360 trillion won ($261 billion), calls for the construction of six chip fab plants and is set to break ground next year.

At the center of the trial is a dispute over greenhouse gas emissions data tied to Samsung’s energy use. The government estimated the complex’s electricity demand at 10 gigawatts, with 3 gigawatts to be generated by three LNG plants on site and the remaining 7 gigawatts imported from outside. Environmental groups argue that the indirect emissions from the external power were never disclosed, raising suspicions that the government skipped required procedures.

The defense countered that disclosing electricity usage would expose Samsung’s production scale at Yongin, calling the data confidential business information. They argued that the ministry withheld the information only at Samsung’s request, and that consultations with the Environment Ministry had been "properly completed."

Construction continues at the site of the Yongin Semiconductor Cluster in Cheoin District, Yongin, Gyeonggi, on Jan. 15, 2024. [YONHAP]

But the court sided with the plaintiffs in emphasizing the need for verification. The bench ordered the defense to submit documents showing how emissions were calculated, even if corporate trade secrets had to be redacted.

“Yongin’s electricity usage essentially equals Samsung’s usage and if disclosed, this could cause problems,” said the defense. The court pressed further, however, repeating the possibility of a submission order and directing the defense to “black out Samsung’s name and submit the documents.”

The ministry ultimately agreed to comply, meaning at least some data on Samsung’s electricity consumption at the Yongin complex will likely be made public.

Industry sources voiced concern. “Sustainability reports disclose total electricity use, but not by site or individual fab,” said a source. “Usage figures at that level reveal production volumes and future line expansions, which are trade secrets.”

A bird's-eye view of the vicinity of the Yongin semiconductor national industrial complex, provided by the Ministry of Land, Infrastructure and Transportation. [YONHAP]

Samsung also faces the risk of delays for its new plant construction schedules. The court questioned the government’s greenhouse gas reduction plans and asked the defense to explain “what legal responsibility the government or company bears if the reduction targets are not met.” This issue will likely dominate two additional hearings scheduled by the court.

The government and the city of Yongin had fast-tracked administrative approvals of the national semiconductor complex in just a year and nine months, a process that normally takes four and a half years. Even if the court nullifies or revokes the approval, the project could be restarted, but delays would be inevitable. Even under the current plan, completion is set for 2031.

“The semiconductor national industrial complex is directly tied to securing domestic production capacity for advanced semiconductor processes critical to national security, as well as to job creation,” said Lee Jong-hwan, a professor of system semiconductor engineering at Sangmyung University.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE GA-RAM [[email protected]]