A 13-trillion-won investment plan by Hynix Semiconductor is unlikely to win the government's approval. The Korean Ministry of Finance has decided not to permit the chipmaker to expand its manufacturing facilities in Icheon, some 45 kilometers southeast of Seoul.

Hynix had sought a relaxing of existing regulations which bar construction of new factories in Seoul and its surrounding Gyeonggi Province. It also sought permission for the industrial use of a 57,000-pyeong site in Icheon, which under current rules is off-limits to factories due to environmental reasons. (1 pyeong equals 3.3 square meters.)

Hynix officials hoped to build three 300-millimeter Fab production lines with a budget of 13.5 trillion won ($142.5 billion) by 2010 in the area. It has secured an 18,000-pyeong lot but needs 57,000-pyeong more for the facilities.

Creating as many as 6,000 jobs, the project is believed to be the single largest investment plan in Korea, equivalent to a full-year facility investment by the country's largest Samsung Group.

By: DocMemory
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