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SK hynix announcement of expanded Yongin chip cluster investment fuels real estate optimism

Published: 15 Dec. 2025, 16:50 Updated: 15 Dec. 2025, 19:36

A render of Cloud City, a development being built by Hyundai Engineering & Construction near Samsung Samgeori in Yeongdeok-dong, Giheung District, Yongin [HYUNDAI ENGINEERING & CONSTRUCTION]

SK hynix's announcement of plans to significantly expand its investment in the Yongin semiconductor cluster is fueling real estate optimism around the Gyeonggi city, with accelerated job creation linked to the growing chip industry expected to drive an expansion of complexes with residential and factory spaces.

SK hynix plans to sharply raise its investment in the cluster from the originally announced 120 trillion won ($81.5 billion) to around 600 trillion won, according to industry sources on Monday. The expansion is attributed to a combination of factors, including an increase in the ratio of total floor space to plot size, which allows for a larger cleanroom footprint.

The floor area ratio for SK hynix’s Yongin cluster site, designated A15, has been raised from 350 percent to 490 percent. As a result, cleanroom — where airborne particulates are controlled — will expand one-and-a-half times over the original plan, while the maximum building height will increase from 120 meters (393.7 feet) to 150 meters.

Industry estimates suggest that SK hynix’s large-scale investment could result in an annual average of 14,000 and 20,000 jobs.

“Along with job growth, the semiconductor industry is expected to emerge as a core pillar of national competitiveness,” an industry source said. “As the Yongin area establishes itself as a key hub of K-semiconductors, demand for knowledge industry centers is also likely to rise.”

One example is Cloud City, a housing development being built by Hyundai Engineering & Construction near Samsung Samgeori in the Yeongdeok-dong neighborhood of Giheung District, Yongin. The complex has drawn strong interest from potential buyers as a beneficiary of the semiconductor boom. It is located near Samsung Digital City in Suwon, a major hub of Korea’s advanced semiconductor industry, and is expected to attract strong demand from partner firms.

The complex also offers convenient access to major highways, including the Suwon Singal interchange on the Gyeongbu Expressway, the Heungdeok interchange on the Yongseo Expressway and the Dongsuwon interchange on the Yeongdong Expressway.

A sales representative said that continued large-scale investments by conglomerates such as SK hynix are expected to sustain growth in the local semiconductor industry.

“Given the region’s characteristics, more materials, parts and equipment companies, as well as research and development-driven firms related to semiconductors, are likely to move in, which should further enhance the value of knowledge industry centers,” the representative said.

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 AHN JANG-WON [[email protected]]