Korean market
The power-supply plan for the Yongin Semiconductor Cluster uses a two-stage approach
21 Aug 2026 · SuhngJoon Han
The power-supply plan for the Yongin Semiconductor Cluster uses a two-stage approach: initial electricity will come from nearby substations and on-site LNG generation, while long-term demand will be met through expanded transmission capacity from the eastern coast and central regions. Total demand for the Yongin national and general industrial complexes is expected to exceed 14 GW by 2041.
Scale of demand
Yongin will host two major semiconductor developments:
The Advanced System Semiconductor National Industrial Complex, where Samsung Electronics is expected to operate.
The Semiconductor Cluster General Industrial Complex, where SK hynix is expected to establish production facilities.
The projected demand includes:
More than 14 GW by 2041.
Approximately the capacity of ten large nuclear reactors, assuming about 1.4 GW per reactor.
Six fabs planned for the national industrial complex.
Initial electricity supply to the general industrial complex, which began in July 2026.
Because demand will increase as fabs are built and commissioned, the government plans to expand supply progressively rather than deliver the full 14 GW immediately.
Stage 1: Initial electricity supply
National industrial complex
Through 2032, initial demand for the national industrial complex is expected to be met through:
Short-distance transmission lines near the industrial complex.
Three 1 GW-class LNG power plants inside the complex.
Available capacity on existing transmission lines.
Replacement power associated with the retirement of aging coal plants.
The three LNG plants would provide approximately 3 GW in total. They are intended to support initial fab operations while longer-distance transmission facilities and additional grid capacity are developed.
LNG is being considered primarily as an initial and balancing resource rather than as the long-term core of the power supply. Its future role will depend on decarbonization policies, hydrogen co-firing, operating limits, and carbon costs.
General industrial complex
The SK hynix-related general industrial complex began initial supply using:
The New Anseong Substation, completed in July 2026.
The East Yongin Substation.
Transmission lines connecting the New Anseong and East Yongin substations.
Available capacity in the existing metropolitan grid.
Unlike the national complex, which is expected to use new on-site generation, this arrangement initially relies on substations and the existing transmission network.
Stage 2: Transmission expansion
As electricity demand increases, the government plans to expand existing lines and build new long-distance transmission infrastructure.
Main direction
By 2031–2032: Build transmission lines around Yongin and links to power sources in the eastern coastal region.
By around 2035: Increase the transfer capacity of existing lines.
Long term: Transmit power from generation facilities in the eastern coastal and central regions to Yongin.
Inside the complex: Add substations and distribution facilities in line with fab construction.
The eastern coast has a large concentration of nuclear, thermal, and renewable generation capacity. The plan is therefore to reinforce the existing grid that transfers electricity toward the metropolitan area and allocate additional capacity to Yongin.
Supply structure
Stage Period Main sources and infrastructure Purpose
Initial 2026–2032 New Anseong and East Yongin substations, nearby transmission lines, three LNG units Support initial fabs and industrial-complex operations
Intermediate 2031–2035 Local transmission lines and upgrades to existing corridors Meet demand from additional fab construction
Long term 2035–2041 Long-distance transmission from the eastern coast and central regions, additional substations Meet more than 14 GW of ultimate demand
Role of each generation source
LNG generation
Three 1 GW-class LNG plants are planned for the Yongin national complex to support initial demand. LNG offers relatively flexible output and a shorter construction period than nuclear power. If configured as combined heat and power, it could also provide process heat or steam for semiconductor manufacturing.
However, LNG faces several long-term challenges:
Fuel-price volatility.
Carbon-emission costs.
Potential limits on operating hours.
The need for hydrogen co-firing or conversion to lower-carbon fuels.
Coordination with industrial electricity tariffs and PPA arrangements.
Nuclear power
The government is reviewing whether and how much new nuclear capacity should be included in the 12th Basic Plan for Electricity Supply and Demand. If approved, new nuclear capacity could support long-term low-carbon supply from the eastern coastal, central, or other regions.
However, new nuclear plants cannot realistically solve the initial 2029-era demand because of their long construction lead times. In practice, LNG and the existing grid would likely address near-term demand, while nuclear, renewables, and transmission expansion would support long-term requirements.
Renewable energy
The government is pursuing an accelerated target of 100 GW of renewable capacity. Renewable energy and direct PPAs could support the Yongin cluster and help semiconductor manufacturers meet RE100 requirements.
Renewables alone, however, cannot easily supply the entire load because semiconductor fabs require high-quality, continuous power around the clock. A practical supply portfolio would therefore combine:
Solar and wind generation.
Nuclear and other zero-carbon firm power.
LNG backup generation.
Battery and pumped-storage systems.
Long-distance transmission.
Demand response and power-quality equipment.
Main challenges
Transmission construction and local acceptance
Supplying more than 14 GW to Yongin will require multiple transmission corridors and substations. Long-distance lines connecting the eastern coast to the metropolitan area are likely to face local opposition and permitting delays.
The government is considering undergrounding lines and expanding local compensation and support programs. Because underground transmission is substantially more expensive and time-consuming, it is likely to be prioritized for urban and densely populated areas rather than applied to every section.
Coordinating generation and transmission
Building generation without transmission would not solve the problem, while building transmission before generation could result in low utilization. For this reason, the government, KEPCO, local authorities, Samsung Electronics, and SK hynix have agreed to coordinate generation, substations, transmission, permitting, and cost allocation.
Cost allocation
A major unresolved question is how the costs of the new grid will be divided among the central government, KEPCO, local governments, and the companies operating in the industrial complexes. Expanded national financial support based on the Semiconductor Special Act is also being discussed.
Practical assessment
The plan is relatively practical because it separates near-term supply from long-term infrastructure development:
Short term: Use substations, existing transmission capacity, and LNG generation.
Medium term: Expand existing transmission corridors as more fabs come online.
Long term: Transfer nuclear, renewable, and other generation from the eastern coast and central regions to Yongin.
The main risks are:
Whether transmission lines and substations can be completed between 2031 and 2035.
Whether the three LNG plants can obtain permits, fuel supplies, and economic viability.
How the 12th Basic Plan will treat new nuclear power, renewables, ESS, and long-distance transmission.
Conclusion
The Yongin Semiconductor Cluster’s electricity plan is based on near-term supply from local substations and LNG plants, followed by long-term transmission expansion from the eastern coastal and central regions to deliver more than 14 GW by 2041.
The biggest bottleneck may not be generation capacity itself, but the speed of transmission construction, local acceptance, cost allocation, and power-quality protection. Semiconductor fabs can suffer major losses from even brief voltage disturbances or outages, so the final infrastructure will need more than generation capacity. It should also include redundant transmission routes, substation redundancy, ESS, emergency generation, and advanced power-quality compensation equipment.