UIJEONGBU — Gyeonggi Province has submitted Paju as its first-round candidate for the central government's Peace Economic Zone program, which aims to create industrial, tourism and logistics hubs along the inter-Korean border. The province plans to submit Yeoncheon County and Pocheon, where development planning is still under way, as second-round candidates next year, and to expand its pool of candidate sites through an additional call for proposals in October.
Gyeonggi Province said on the 1st that it formally filed a development plan with the Ministry of Unification and the Ministry of Land, Infrastructure and Transport on Sept. 30, asking that about 6.9 square kilometers across Paju-eup, Munsan-eup and Wollong-myeon in Paju be designated as a Peace Economic Zone. The application follows the Unification Ministry's first basic plan for Peace Economic Zones, and competition among local governments for the pilot designations is expected to intensify.
2 Trillion Won in Total Investment, With 210 Companies Signaling Interest
The development plan drawn up by the province centers on mixed-use development combining industry, tourism and housing. The zone would be reorganized into five districts, including two industrial districts along with mixed-use, cultural tourism and inter-Korean logistics districts.
The province plans to concentrate on six strategic industries in the area, including artificial intelligence, advanced manufacturing, pharmaceuticals and smart logistics. It will also set aside 1.4 square kilometers, or 20% of the total area, as a separate peace site to maximize links if inter-Korean economic cooperation resumes. Total project costs are estimated at about 2 trillion won ($1.4 billion), and 210 companies have so far expressed interest in moving in, which the province says demonstrates the project's viability.
The Unification Ministry plans to designate about four Peace Economic Zones nationwide. Designated zones will receive substantial benefits, including tax and levy reductions, special treatment in permits and approvals, and priority support for infrastructure. The province is arguing that Paju is the best location in the western inland region, citing its existing advanced industrial base, proximity to the Kaesong Industrial Complex and wide-area transport networks.
Momentum for Northeastern Gyeonggi Transformation; Yeoncheon and Pocheon to Try Next Year
The application is also expected to accelerate the "Grand Transformation of Northeastern Gyeonggi" initiative being pursued by the province's current administration. Gyeonggi Province aims to link returned U.S. military bases and idle military sites with Peace Economic Zones and Opportunity Development Zones to attract future industries such as aviation, space and maintenance, repair and overhaul, climate and energy technology, and advanced smart farming.
"Gyeonggi Province has prepared meticulously for the Peace Economic Zone designation, from the legislative stage through the selection of candidate sites," Gyeonggi Governor Choo Mi-ae said. "Based on Paju's location and industrial competitiveness, we will do everything possible to win a first-round pilot designation and make northeastern Gyeonggi the hub of South Korea's peace economy."
Yeoncheon County and Pocheon, the province's other candidate sites, plan to apply for the second round, which closes on Aug. 31 next year, after completing preliminary administrative steps including development planning and strategic environmental impact assessments. Gyeonggi Province will hold an additional call for proposals in October and select one more site by the end of the year, extending the peace economy belt across northeastern Gyeonggi.
