Introducing the Leader in Economy of Icheon City: Icheon SK Hynix

Introduction of Icheon SK Hynix as the leader for the economy of Icheon City

@Gyeonggi Province

Introducing the Leader in Economy of Icheon City: Icheon SK Hynix

The city of Icheon in Gyeonggi Province is home to rice, ceramics, hot springs, and peaches.

Icheon City has evolved beyond the industrial economy based on traditional agriculture, ceramics, and tourism and is now rising as a global semiconductor city as the city established semiconductors as its local specialty.

SK Hynix is one of the conglomerates in Korea, and a top 3 semiconductor company in the world, and established itself as one of the major players in Korean economy. The company has a significant impact on local economy and urbanization of Icheon City as a result.

In the past, there were rumors that SK Hynix will be sold at a bargain price to a foreign company as the company was struggling with a total debt of 10 trillion won. But the people of Icheon engaged in a movement for each citizen to own a share in the struggling company at the time and held meetings to help SK Hynix get back on its feet over the years as SK Hynix grew alongside Icheon City.

@Gyeonggi Province

As a result, the company even recorded its highest sales ever for a quarter at 11.8 trillion won in 2021. Also, the impact of SK Hynix on the finances of Icheon City is unparalleled. The local income tax paid by SK Hynix in 2019 was 327.9 billion won and this was equivalent to a third of the annual budget for Icheon City at the time, which was allocated 1 trillion won. The expected tax revenue effect from the company’s Icheon factory alone is projected to surpass 1 trillion won per year.

For the past 10 years since Hynix merged with SK Group in 2012, Icheon City has experienced growth in various areas. Not only have the sales increased, but the population of the city which was 200,000 people at the time has increased to 220,000 people, which is approximately a 10% growth compared to where the city population was 10 years ago. This is because there are more younger people relocating to Icheon City seeking jobs every year.

Icheon City’s dependence on SK Hynix is expected to grow even more over the years. This is because the company has completed the M16 Plant, the world’s largest semiconductor fab (factory), and has official begun investing in the facility.

SK Hynix has already invested 3.5 trillion won in construction, but the additional investments into the facility is projected to be nearly 20 trillion won. And as a result, Icheon City is expected to reach around 80 trillion won in production and generate over 60,000 new jobs by 2026.

@Gyeonggi Province

Icheon City projects that it is possible for the city to achieve the goal of reaching 300,000 people for the city population by 2030 based on the projections above. This is because the continuous investment from SK Hynix is leading to high employment rate in Icheon City.

Also, Icheon City has been designated as the smart semiconductor belt by the Ministry of Land, Infrastructure, and Transport and completion of the M16 Plant by SK Hynix is building the foundation for the city to grow into a semiconductor city that will lead the Fourth Industrial Revolution. Through this, Icheon City will become the center of the smart semiconductor belt.

@Gyeonggi Province

SK Hynix and Icheon City will continue to build new and innovative cooperative relationships and partnerships in the future as they serve as an ideal example of vitalizing the local economy. 

Show your support for Icheon City and SK Hynix as they rise together as the innovative growth engine for the national economy.

-Official SK Hynix website

https://www.skhynix.com/