Osan City is gaining momentum in creating a semiconductor industrial hinterland city, emerging as the central city of the 'K-Semiconductor Belt,' which is set to lead the domestic industry in the future. Osan City plans to develop an economically self-sufficient city with a population of 500,000.

Expected panoramic view of the Hyundai Terra Tower Sem Station office facility. /Courtesy of Hyundai Engineering
Expected panoramic view of the Hyundai Terra Tower Sem Station office facility. /Courtesy of Hyundai Engineering

According to the real estate industry on the 6th, Osan City is trying to transform into a semiconductor industrial city by capitalizing on its geographical advantage as the central location of the K-Semiconductor Belt, which connects Hwaseong (Dongtan), Pyeongtaek, and Yongin. The government recently designated the Segyo 3 district as a new housing site candidate and announced plans to supply 31,000 housing units.

Considering the locational characteristics as the center of the semiconductor cluster in the metropolitan area, the government plans to develop this area into a 'self-sustaining Connect City' that strengthens R&D and other support functions for the semiconductor industry.

In line with this, Osan City is steadily sketching out the blueprint for a semiconductor city. First, it is attracting investments and corporations related to the semiconductor sector.

In the Gajangdong area of Osan City, it is reported that the semiconductor equipment company Applied Materials (AMAT) has purchased land and plans to build an R&D center by 2025. AMAT is a semiconductor and display equipment company headquartered in Silicon Valley, USA, holding the top market share in the industry.

Development plans related to semiconductors are also steadily emerging. According to Osan City, the city plans to establish a development direction as a specialized city for semiconductor materials, parts, and equipment (so-boo-jang), aiming to create jobs. It is also reportedly actively pursuing improvements in the metropolitan transportation network to strengthen its capacity as a semiconductor hinterland city.

Osan City is indeed considering expanding metropolitan rail services, including the extension of the metropolitan express railway (GTX) C line and halting KTX at Osan Station. The city plans to enhance connectivity with surrounding semiconductor clusters by promoting the early construction of trams between Osan and Dongtan, opening the Gyeongbu Line railway overpass, and conducting phase 2 construction of the underground Dongbu-daero.

Around Osan City, the world's largest 'Advanced System Semiconductor National Industrial Complex (Yongin Industrial Complex),' for which Samsung Electronics has announced an investment plan of about 360 trillion won, is accelerating development with a goal of commencing operations at its first factory by the end of 2030.

The real estate market in Osan City is also finding vitality. According to the Ministry of Land, Infrastructure and Transport's actual transaction information system, the exclusive 83㎡ of 'Osan Daeyuksegyo JAI' in the Segyo district was traded for 578 million won on December 5 last year. This is an increase of 60 million won compared to 510 million won in February of last year.

The housing complexes supplied last year, including 'Osan Station Geumgang Pentarium Central Park' and 'Osan Segyo Umi-lin Central City,' completed 100% sales in a short period.

Osan City is also receiving inquiries about purchasing and investing in land and business facilities. Real estate industry officials explained that inquiries have continued for business facilities, as various corporations are expected to flow into the area.

An official from A Real Estate in the Segyo-dong area of Osan City said, “In the Osan Segyo district, inquiries from corporations wishing to move into the 'Hyundai Terratower Sema Station' knowledge industry center, which Hyundai Engineering supplied and began construction at the end of last year, are continuing.” They added, “Along with the rising trends seen in nearby areas such as Dongtan, Cheongju, and Asan due to semiconductor-related favorable news, the real estate market in Osan City, including land and business facilities, is receiving continuous interest from demanders.”