Mayor Lee Byungsun of Sokcho: "Designation as Peace Economy Special Zone... Will Make It a Key Bridgehead for Inter-Korean Economic Cooperation"

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As Sokcho City in Gangwon Province has been officially designated as a border area and now as a candidate for the Peace Economy Special Zone, citizens' expectations are rising, and the local community is closely watching how future plans related to this will be implemented.

Lee Byung-sun, mayor of Sokcho City, is giving a briefing on the designation of the border area related to the Peace Economy Special Zone. Provided by Sokcho City

On October 14, a partial amendment to the Enforcement Decree of the Act on the Designation and Operation of the Peace Economy Special Zone, which adds Sokcho City in Gangwon Special Self-Governing Province and Gapyeong County in Gyeonggi Province as candidate areas for the Peace Economy Special Zone, passed the Cabinet meeting review.

With this, Sokcho City has acquired legal status as a target area for the Peace Economy Special Zone, which the government is currently promoting.

The Peace Economy Special Zone is being pursued with the aim of facilitating inter-Korean economic exchange and realizing an economic community in areas adjacent to North Korea. The designated areas adjacent to North Korea include counties and cities near the southern boundary of the Demilitarized Zone (DMZ), those close to the Northern Limit Line (NLL), and other regions specified by Presidential Decree.

Initially, there were 15 cities and counties in Incheon (Ganghwa County, Ongjin County), Gyeonggi (Gimpo City, Paju City, Goyang City, Yangju City, Dongducheon City, Pocheon City, Yeoncheon County), and Gangwon (Cheorwon County, Hwacheon County, Yanggu County, Inje County, Goseong County, Chuncheon City). With the addition of Sokcho City and Gapyeong County, the total has increased to 17 cities and counties.

The special zone will be designated and announced after the provincial or city governor establishes a development plan according to the Ministry of Unification's basic plan for the Peace Economy Special Zone and receives approval from the Ministry of Unification and the Ministry of Land, Infrastructure and Transport.

Therefore, the government's basic plan, which will outline the specific operational direction, support measures, incentives, and other details for the special zone, must be released before each candidate area can begin formulating its own basic plan and make concrete preparations.

The Ministry of Unification plans to establish the "Basic Plan for the Peace Economy Special Zone" within this year and announce it after review and resolution by the Peace Economy Special Zone Committee.

The special zone aims to develop border areas that have been neglected due to division, promoting balanced national development. In the mid- to long-term, it seeks to stimulate domestic industrial production and create a virtuous cycle of economic growth between South and North Korea, ultimately contributing to the formation of an inter-Korean economic community.

As a national strategic special zone designated to promote economic cooperation and joint prosperity in border areas, the special zone is expected to offer various administrative and financial supports, such as streamlined permits for developers and tenant companies, reductions in local taxes and fees, and the establishment of infrastructure.

The regional and phased development plans announced in April by the Ministry of Unification's "Basic Concept for the Peace Economy Special Zone" are as follows: the western region will focus on "future innovative manufacturing and high-tech industrial complexes" leveraging high industrial concentration in innovative manufacturing; the central region will feature "agriculture, tourism, and light industry convergence complexes" with industrial advancement and innovation-oriented approaches; and the eastern region will develop "tourism-centered high-tech logistics and service specialized complexes" based on a high degree of specialization in tourism and innovative/general service industries.

Based on this, the Ministry of Unification plans to establish the basic plan, so it is expected that for the eastern region, including Gangwon Province, the basic plan will focus on a tourism-centered high-tech logistics and service specialized complex.

Accordingly, each candidate area is expected to develop business plans linked to this vision.

Once the Ministry of Unification releases the basic plan for the Peace Economy Special Zone, Sokcho City plans to commission a specialized research institution to develop the "Sokcho City Specialized Peace Economy Special Zone Development Plan" in connection with it.

For Sokcho City, its past experiences with inter-Korean exchanges such as family reunions and the operation of maritime tours to Mount Kumgang, as well as its outstanding natural environment, are expected to be major assets in formulating and implementing a differentiated special zone development plan unique to Sokcho.

There are also expectations for revitalizing the local economy through the attraction of private companies and job creation.

Furthermore, this is anticipated to be a turning point for Sokcho City to grow into a key bridgehead for inter-Korean economic cooperation.

The city aims to leverage its port infrastructure, which includes an international car ferry and cruise ship home port, to expand the former Sokcho-Mount Kumgang (Jangjeon Port) maritime route, and eventually connect the Wonsan Kalma Coastal Tourist Zone, Sokcho, Russia, and Japan through the "Peace Sea Route." Through this, Sokcho Port is expected to serve as a global hub for marine tourism and trade.

Lee Byung-sun, mayor of Sokcho City, is giving a briefing on the designation of the border area related to the Peace Economy Special Zone. Provided by Sokcho City

In addition, the city plans to establish a wide-area transportation axis by linking the Dongseo High-Speed Railway, scheduled to open in 2028, with the Donghae Bukbu Line, and combining this with improved access to Yangyang International Airport. This will support the creation of a hinterland complex logistics complex and the establishment of an international tourism belt connecting Seoraksan and Mount Kumgang.

In Yeongrang Lake, the core hub of the belt, an eco-friendly tourism complex is being developed, featuring a swimming pool, museum, botanical garden, ecological park, and observatory. This is also expected to create synergy effects for the Peace Economy Special Zone.

This project will be funded with 1.0376 trillion won in private capital from Shinsegae Central City Co., Ltd.

To ensure smooth development of the transportation, logistics, and tourism axes, a study titled "Plan for Establishing the Foundation for Inter-Korean Economic Cooperation in Sokcho City" is also underway in collaboration with the Gangwon Research Institute.

Meanwhile, Sokcho City expects that the confirmation of its designation as a candidate area for the Peace Economy Special Zone, along with its earlier designation as a border area, will greatly contribute to the future development of the region.

After being designated as a border area by the Ministry of the Interior and Safety in March, Sokcho City was selected for six new projects in the 2026 national competition for special situation area development in border regions-the highest number in the country-securing 21 billion won in national funding.

The Special Situation Area Development Project aims to improve the welfare of residents in border areas neglected due to the division of the Korean Peninsula and geographical conditions, as well as to promote regional development. According to the Local Autonomy and Balanced Development Act, 80% of the project cost for new projects is supported by national funds.

With this selection, Sokcho City will launch projects totaling 26.3 billion won from 2026, aimed at improving residential conditions and revitalizing the local economy, with 21 billion won from the national government and 5.3 billion won from the city budget.

The six projects to be implemented are: the expansion of the Seoraksan National Park access road (8 billion won), the development of Manri Neighborhood Park (7 billion won), the maintenance of the northern plaza and facilities at Cheongcho Lake Amusement Park (5.2 billion won), the Sokcho Beach tourism hub linkage project (3 billion won), the improvement of the alleyway landscape in Sangdomun Stone Wall Village (1.9 billion won), and the construction of a road around the planned site of Sokcho Middle School (1.2 billion won).

Lee Byung-sun, mayor of Sokcho City, stated, "With Sokcho City included as a candidate area for the Peace Economy Special Zone, we have secured a new growth engine along with the border area designation. Based on our experience as a central city for inter-Korean family reunions and Mount Kumgang tourism, we will do our utmost to establish Sokcho City as a strategic tourism hub for inter-Korean economic cooperation."

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