Business · Economy · 48 mins ago
South Korean Semiconductor Cities Expect Sharp Rise in Tax Revenue
Semiconductor cities in South Korea’s Gyeonggi province expect a major tax windfall next year as Samsung Electronics and SK Hynix report strong results.
Samsung’s local corporate income tax payments are projected to reach 1.8 trillion won for Hwaseong, 1.6 trillion for Pyeongtaek, 1.3 trillion for Suwon and 740 billion for Yongin.
Icheon expects about 2 trillion won from SK Hynix, nearly three times this year’s payment.
Local corporate income tax is based on company profits and divided among municipalities according to factors including local workforces and building space.
Employee bonuses are also expected to boost personal income tax, with Hwaseong forecasting a rise in tax withheld from Samsung workers’ pay.
The cities plan to use some of the extra revenue for roads, railways and other infrastructure.
They also plan to save part of it in funds to prepare for a future downturn in the semiconductor industry.
South Korean cities that host semiconductor plants expect local corporate income tax revenue to rise sharply next year as Samsung Electronics and SK hynix report strong results.
Samsung’s projected tax payments to Hwaseong, Pyeongtaek, Suwon and Yongin are each about 10 times this year’s amounts, with Yongin’s forecast at about 11.7 times.
Icheon expects to receive 2 trillion won from SK hynix, nearly three times this year’s 720 billion won.
The cities plan to use increased revenue for roads and railways, while setting aside some funds to prepare for a future industry downturn.
- Who
- Local governments in Hwaseong, Pyeongtaek, Suwon, Yongin and Icheon.
- What
- They expect a sharp rise in local corporate income tax revenue next year. The cities plan infrastructure investment and fund reserves.
- When
- Next year, 2027, according to the article published on November 7, 2026.
- Where
- South Korea, in cities in Gyeonggi Province that host Samsung Electronics or SK hynix semiconductor facilities.
- Why
- Strong results at Samsung Electronics and SK hynix are expected to increase tax payments.
This story does not have two clearly opposing sides.
A drop in local income tax revenue amid poor semiconductor industry results led a local government to consider cutting spending on existing projects.
Samsung paid corporate local income taxes based on its previous year’s results, including 180 billion won to Hwaseong and 155 billion won to Pyeongtaek.
Samsung’s corporate local income tax payments to four cities are forecast to reach about 740 billion to 1.8 trillion won each.
Icheon is forecast to receive 2 trillion won in corporate local income tax from SK hynix.
- Samsung payment forecast to Hwaseong
- 1.8 trillion won next year
- Samsung payment forecast to Pyeongtaek
- 1.6 trillion won next year
- Samsung payment forecast to Suwon
- 1.3 trillion won next year
- Samsung payment forecast to Yongin
- 740 billion won next year
- SK hynix payment forecast to Icheon
- 2 trillion won next year
- Suwon’s Samsung tax allocation rate
- 19.6% this year
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What people are saying
Just three years ago, poor results in the semiconductor industry and a sharp drop in local income tax revenue meant we even considered a supplementary budget that would cut spending on existing projects.
We plan to put a considerable portion of the excess revenue into funds to prepare and respond for the future, and spend it year by year.