Gyeonggi Province Moves to Secure “Peace Economy Special Zone” Designation... Launches Development Plans for Yeoncheon, Paju, and Pocheon

Gyeonggi Province Launches 18-Month Research Project from April 20

Seoul National University to Lead Study; Tax Benefits and Investment Attraction Expected

Province Accelerates Efforts to Apply for Government's First Pilot Zone Designation in September

Gyeonggi Province has officially begun preparations to designate three border cities and counties—Yeoncheon, Paju, and Pocheon—as “Peace Economy Special Zones,” aiming to establish these areas as hubs for inter-Korean peace and economic growth.

Front view of Gyeonggi Provincial Government Office. Provided by Gyeonggi Province

On April 20, Gyeonggi Province announced that it has launched a research project to develop a plan for the Peace Economy Special Zone in Gyeonggi Province, starting the process of drafting tailored implementation strategies for each candidate site. This move is a proactive response to the central government's announcement that it will establish around four special zones nationwide between 2026 and 2027.

The research project will be conducted by the Seoul National University Industry-Academic Cooperation Foundation and will run for 18 months until October 2027. The scope of the study includes creating customized development plans that reflect the unique conditions and strengths of Yeoncheon County, Paju City, and Pocheon City, which have been selected as candidate sites in Gyeonggi Province. The core tasks are to analyze the conditions of Yeoncheon, Paju, and Pocheon and to develop strategies for industry, tourism, and investment attraction, as well as to establish land use and infrastructure plans to support these strategies.

If designated as a Peace Economy Special Zone, the area will receive significant benefits. These include tax reductions such as corporate tax and local tax exemptions, as well as waivers of various charges and financial support. The province envisions creating a “complex-type special zone” that transcends a simple industrial complex by integrating tourism and culture.

Gyeonggi Province plans to hold a project kick-off meeting in May to share the direction of the initiative and will operate regular working-level meetings with the relevant cities and counties to incorporate on-site feedback into the plans.

The province intends to respond without delay to the first round of designations for pilot zones, scheduled for September this year, as well as the second round in August next year, by refining specialized strategies and concretizing development plans.

Park Hyunseok, Director of the Peace and Cooperation Bureau, stated, “The Peace Economy Special Zone is a new national development model that can transform border areas from spaces of regulation and isolation into spaces of growth and opportunity. Gyeonggi Province was the first to begin the process of developing a plan following the announcement of the relevant master plan, and we have proactively started preparations to compete for special zone designation. We will make thorough preparations to ensure the designation is achieved.”

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