Business · Economy · 2 hrs ago
Land costs for South Korea’s Honam chip complex may exceed 5 million won per pyeong
A planned national semiconductor complex in Honam, South Korea, is to be built on the site of a former military airport in Gwangju.
An estimate based on government and Korea Land and Housing Corporation data puts the project’s total cost at about 9 trillion won.
That includes about 5 trillion won to acquire the former airport land and 4 trillion won for development.
If 70% of the site is sold, the estimated preparation cost works out to about 5.14 million won per pyeong, a Korean land-area unit.
The actual price for industrial land has not been set, and the estimate is higher than prices at nearby industrial parks.
The government and the land corporation are reportedly considering selling industrial plots for 3 million to 4 million won per pyeong to reduce costs for companies.
That would leave a gap of up to about 3.4 trillion won, and officials will need to decide whether public funds or the land corporation covers it.
The cost and who pays the difference matter because they could affect the burden on companies and the public.
A proposed Honam semiconductor industrial complex in South Korea could have land development costs of about 5.14 million won per pyeong.
The estimate is based on a total project cost of about 9 trillion won, including land acquisition and development.
The industrial land sale price has not been set, and the government and Korea Land and Housing Corp. are reportedly considering prices of 3 million to 4 million won per pyeong.
Selling land below the estimated cost could leave a gap of up to about 3.4 trillion won.
A lawmaker said the government should disclose how the costs will be covered and whether they will be passed on to businesses.
- Who
- The proposed complex is being developed by the government and Korea Land and Housing Corp. Lawmaker Kang Dae-sik raised questions about its costs.
- What
- The estimated land development cost could exceed 5 million won per pyeong, while a lower sale price could create a funding gap.
- When
- The estimate was reported on October 12, 2026.
- Where
- The complex is planned for the former Gwangju military airport site in South Korea.
- Why
- The estimate reflects about 5 trillion won in land acquisition costs and about 4 trillion won in development costs.
This story does not have two clearly opposing sides.
The structure in which costs previously borne by Gwangju are reflected in the national industrial complex development cost and passed on to businesses must be examined thoroughly
The government must transparently disclose the scale of the burden on businesses and the public
The Bichgreen National Industrial Complex industrial land was sold at an average of 770,000 won per pyeong.
Industrial land in Gwangju R&D Special Zone’s Advanced 3 District was sold at an average of 2.41 million won per pyeong.
An estimate put the Honam complex’s total project cost at about 9 trillion won and its development cost at about 5.14 million won per pyeong.
- Total project cost
- About 9 trillion won
- Land acquisition
- About 5 trillion won
- Development costs
- About 4 trillion won
- Total site area
- 2.5 million pyeong
- Estimated development cost
- About 5.14 million won per pyeong
- Possible funding gap
- About 1.8 trillion to 3.4 trillion won
Sources
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