Yeoju City protests semiconductor complex water facilities, facing 3.6 billion won loss

Yeoju City, located upstream on the Han River in South Korea, is protesting the construction of industrial water supply facilities for a new semiconductor complex in Yongin City. The facilities, which include a water intake plant and 7.2 kilometers of pipelines, are set to be built within Yeoju's Sejongdaewang-myeon.

Under the "Industrial Site and Development Act," these facilities will be transferred to Yongin City free of charge upon completion. This transfer means they will be exempt from local taxes, resulting in an estimated loss of 3.695 billion won in acquisition tax for Yeoju. Furthermore, Yeoju will no longer receive corporate local income tax, which it previously collected from existing facilities supplying water to SK Hynix in Icheon. Last year, SK Hynix paid 2.18 billion won in this tax.

Yeoju argues that it has endured decades of development restrictions due to overlapping regulations, such as the Metropolitan Area Readjustment Plan and the Water Source Protection Area. While Yongin and Icheon are set to reap substantial economic benefits, including job creation and increased tax revenue from the semiconductor complex, Yeoju feels it is being forced to bear the brunt of environmental sacrifices without commensurate gains.

Neighboring Gwangju City is also expressing opposition, demanding practical support and win-win strategies for water resource allocation and pipeline passage. Both cities are calling for financial support to compensate for the sacrifices made by areas under water source regulations and for institutional improvements to address fiscal imbalances caused by infrastructure development. They emphasize the need for a fairer distribution of benefits from industrial projects.