Gyeonggi Province to Promote 'Peace Economic Zone' Adjacent to North Korea... "Expecting Development in Northern Gyeonggi"

Peace Economy Special Zone Act to be Presented at the Foreign Affairs Committee Full Meeting on the 17th
Expected Production Induction Effect of 6 Trillion Won When Designating a 1 Million Pyeong Special Zone

[Asia Economy Reporter La Young-cheol] Gyeonggi Province announced on the same day that the "Act on the Designation and Operation of Peace Economy Special Zones (hereinafter referred to as the Peace Economy Special Zone Act)" passed the National Assembly Foreign Affairs and Unification Committee's bill review subcommittee on the 15th and will be submitted to the full Foreign Affairs and Unification Committee meeting on the 17th.

Unification Bridge, Paju-si, Gyeonggi-do [Photo by Moon Honam]

The Peace Economy Special Zone Act, first proposed in 2006, provides the legal basis for designating and operating 'Peace Economy Special Zones' in areas adjacent to North Korea.

The Peace Economy Special Zones are jointly designated by the Minister of Unification and the Minister of Land, Infrastructure and Transport upon request from city or provincial governors, and industrial complexes or tourism special zones with benefits such as tax and levy reductions and financial support can be established.

The target areas for the Peace Economy Special Zones include Gimpo, Goyang, Paju, Yeoncheon, Dongducheon, Pocheon, and Yangju in Gyeonggi; Ganghwa and Ongjin in Incheon; and Cheorwon, Hwacheon, Yanggu, Inje, Goseong, and Chuncheon in Gangwon.

According to the province, if these areas are designated as Peace Economy Special Zones, developers of development projects will receive benefits such as ▲land expropriation and use ▲support for installation of infrastructure such as roads and water and sewage facilities ▲use and profit of national property ▲tax reductions including corporate tax and various levies.

Resident companies can enjoy benefits such as reductions in national and local taxes, rent reductions for developed sites, operational fund support, and priority support from the Inter-Korean Cooperation Fund when conducting inter-Korean trade and economic cooperation projects.

According to a 2015 report by the Gyeonggi Research Institute titled "Analysis of the Effects of Attracting Unification Economic Special Zones (Peace Economy Special Zones) in Gyeonggi Province," establishing an economic special zone of about 1 million pyeong in northern Gyeonggi is estimated to generate a production inducement effect (nationwide ripple effect) of 6 trillion won (9 trillion won) and create employment of 54,000 people (73,000 people nationwide ripple effect).

Cho Chang-beom, Director of the Peace Cooperation Bureau of Gyeonggi Province, said, "If the Peace Economy Special Zone Act is passed and the special zone is attracted, it will serve as a driving force to make northern Gyeonggi a new growth hub along with the Northern Gyeonggi Special Self-Governing Province," adding, "It is expected to be a new opportunity for northern Gyeonggi, which has sacrificed for national security for over 70 years."

This content was produced with the assistance of AI translation services.