Paju, a city in Gyeonggi Province bordering North Korea, has been selected as a final candidate site for the province's Peace Economic Zone.
Gyeonggi Province announced on the 30th that it held a "Peace Economic Zone Candidate Site Selection Committee" meeting at the provincial government's northern office on the 27th, selecting three locations: Paju, Yeoncheon and Pocheon. The province conducted an open call from February 11 to March 10 targeting eight border-area cities and counties — Goyang, Paju, Gimpo, Yangju, Pocheon, Dongducheon, Gapyeong and Yeoncheon — and seven of them submitted applications.
The Peace Economic Zone is a national strategic project that combines peace and security values with industrial and economic functions in border areas adjacent to North Korea. Designated zones receive benefits including corporate tax reductions, local tax breaks, levy exemptions and financial support. Zones can be developed in various formats including industrial complex, tourism and culture, or mixed-use types.
Paju began building its zone promotion framework immediately after the special law took effect in 2023. The city collaborated with Seoul National University's Industry-University Cooperation Foundation for over two years, developing phased development strategies reflecting changes in inter-Korean relations, plans for fostering advanced strategic industries and measures aligned with the Ministry of Unification's master plan.
This year, the city further refined its implementation strategy through additional collaboration with Hyundai Research Institute, enhancing the feasibility of development projects and identifying strategic industries based on actual demand. Paju is reportedly the only city nationwide to have established a consistent promotion framework spanning from the research phase through to investment attraction strategy.
◇ AI, Bio, Food Tech — Advanced Industrial Cluster Vision
Paju has designated five strategic industries — artificial intelligence (AI), climate tech, pharmaceutical bio, smart logistics and food tech — leveraging its existing advanced industrial base anchored by LG Display (034220.KS). The city plans to pursue multi-layered development linking existing transportation networks — including Jayuro Expressway, Tongillo Road, Seoul-Munsan Expressway, Metropolitan Area Second Ring Expressway and the Gyeongui-Jungang Line — with industrial complexes.
The city will also revitalize peace tourism resources such as Panmunjom, Imjingak tourist area and Imjingang National Garden. It plans to build an international convention center and develop it as a hub for international events and exchanges centered on the theme of peace.
"We will turn the limitations of being a border area into opportunities and realize a model where advanced industry and a peace economy coexist," Paju Mayor Kim Kyung-il said. "We will concentrate our administrative capabilities to ensure Paju's vision is faithfully reflected in the development plan."
Meanwhile, Gyeonggi Province will launch a research project to establish development plans for the three candidate sites starting in April. The province plans to develop specialized strategies for each candidate, enhance the completeness of the legally required plans and then apply to the Ministry of Unification for zone designation. The final designation will be determined through a review process by the Ministry of Unification and other agencies.
