The government has begun the process of lifting regulations on the country's number two chipmaker SK Hynix to build a semiconductor cluster in Yongin, Gyeonggi Province.

The Industry Ministry said it plans to request the Land Ministry on Friday to ease regulations that limit the size of industrial zones in the Seoul metropolitan area, including Gyeonggi Province.

If approved, the 120-trillion-won project will become the first case of easing development regulations in the capital region under the Moon Jae-in administration.

On Thursday, SK Hynix expressed interest in building four semiconductor factories in Yongin near many parts makers and requested a plot of land from the government that is four-point-five million square meters in size.

The ministry said the project is expected to support the country's chip industry, which was responsible for 20 percent of South Korea's combined exports last year, and help revitalize the economy amid global uncertainty.