Yongin Mayor Lee Sang-il Urges "Prudent Budget Planning in Preparation for Semiconductor Cycle"
Despite the semiconductor boom's significant contribution to increased tax revenue, concerns have been raised about the need for prudent budget planning that restrains discretionary spending in preparation for operating deficits caused by semiconductor cycles.
On the 14th, Yongin Special City Mayor Lee Sang-il ordered senior civil servants to exercise prudent budget planning that restrains discretionary spending during the third briefing session on major business promotion plans for 2027 held in the city hall video conference room.
Mayor Lee stated, "While the city's finances are improving due to the semiconductor boom, because of the semiconductor cycle, companies like Samsung Electronics and SK Hynix will likely experience similar profit and loss swings whether they're operating at a profit or loss," and emphasized, "There is a need to prepare for when downturns come and tax revenue decreases."
The mayor added, "When money comes in, we should build up railroad funds and semiconductor cooperation funds," and said, "If we indiscriminately spend on universal welfare with discretionary funds during boom periods, it becomes unmanageable later. Budget planning should be done prudently, but we should act decisively on what needs to be done boldly."
During the briefing session, discussions were also held on the 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 stressed the need to prepare response measures anticipating large-scale construction workforce influx and called for swift administrative processing.
Mayor Lee explained the situation, stating, "Half of SK Hynix's first fab construction is already well underway, and the construction of the other half of the first fab has started. Construction of the second fab will also begin in the first half of next year," and added, "Currently, approximately 24,000 construction workers are coming in, and won't more than 30,000 be coming in next year?"
The mayor further said, "The national industrial complex site development appears to be breaking ground within the year, and about a year later, fab construction will begin, so large numbers of construction workers will likely pour in again," ordering related departments to prepare response measures in advance through task forces (TF).
Previously, the city expedited construction permits through a TF regarding SK Hynix's first fab construction. In return, SK has implemented a plan to utilize 450 billion won worth of local resources on the construction of half of the first fab as a gesture of appreciation and mutual prosperity.
The city also secured hub parking lots to address habitual traffic congestion and illegal parking issues in surrounding areas caused by large-scale construction workforce influx.
On this day, Mayor Lee emphasized the need to improve administrative processes to match the city's rapid development.
The mayor stated, "At a recent staff meeting at Cheoin-gu Office, good suggestions came up that as we establish major business plans and undertake new projects every year, work accumulates. I ask senior officials to carefully manage and reduce the workload where possible."