A Bank of Korea study released on the 31st found that SK hynix employees, after receiving record-high performance bonuses, concentrated on buying real estate in the southern Gyeonggi semiconductor belt—Dongtan in Hwaseong, Yeongtong in Suwon, and Giheung in Yongin. The implication is that large bonuses still to be paid could push up real estate prices in the Seoul metropolitan area.
According to "How will consumption change in regions benefiting from semiconductors: spillover effects viewed through local micro data," which the Bank of Korea released the same day, residents of Icheon, where SK hynix is headquartered, bought 45 properties in Dongtan in February, about four times the year-earlier month's 12. After receiving a record-high bonus in February—2,964% of base salary—it appears they bought Dongtan apartments, where many units are newly built. By the same measure, there were 158 Dongtan real estate purchases from February to July, about twice the 69 in the same period a year earlier. Icheon, home to SK hynix's headquarters, has the nation's highest exposure to semiconductors.
The Bank of Korea said, "Housing-related consumption in Icheon rose sharply, suggesting that additional income may have been used for purchasing dwellings," and added, "Spending on categories closely tied to acquiring dwellings—such as furniture, home appliances, kitchenware, and real estate brokerage services—posted the largest increases."
Real estate purchases in Suwon by Icheon residents totaled 76 from February to July, up 90% from 40 a year earlier. In the same period, Yongin rose from 95 to 121, up 27.3%, and Seongnam increased from 38 to 53, up 39.4%.
By contrast, in Heungdeok District of Cheongju, home to the SK hynix Cheongju Campus, purchases of real estate in the Seoul metropolitan area decreased or held steady after the bonuses were paid. A Bank of Korea official said, "In Icheon's case, proximity to the metro area seems to have encouraged more real estate investment," adding, "In Cheongju, purchases within the local dwellings market are appearing."
While bonuses boosted spending, it skewed toward high-priced items such as cars and department stores. The domestic demand stimulus effect of spending spreading across daily life has yet to appear. In fact, in semiconductor-benefiting areas (Icheon, Hwaseong, Pyeongtaek, Heungdeok in Cheongju, and Giheung in Yongin), Tesla's average monthly deliveries in January–June this year rose 105.6% from last year, outpacing the national average of 77.2%.
The Bank of Korea said, "Dining-out spending also briefly increased right after bonuses were paid, but over time the center of gravity shifted to automobiles," adding, "Spending patterns centered on high-priced goods—such as department store home appliances and furniture—stood out, while daily-life consumption at supermarkets and convenience stores and medical and education expenditure showed no clear change."
Even so, the Bank of Korea made clear that a consumption-boosting effect from large bonuses is emerging. According to the Bank of Korea, monthly consumption in Icheon, Hwaseong, and Cheongju—where a high share of residents work in semiconductors—was estimated to be up to 4% higher than in areas without such characteristics.
The consumption effect in semiconductor-benefiting regions totaled a cumulative 1.1 trillion won from last year through June and is expected to expand to about 1.7 trillion won by the end of this year. Compared with a scenario without a semiconductor boom, the increase in consumption was estimated to raise gross domestic product (GDP) by 0.01% in 2025 and 0.03% this year. Considering that SK hynix and Samsung Electronics bonuses are projected to be about five times larger than last year, the GDP lift is also seen expanding to 0.08% to 0.12%, the Bank of Korea said.