A discussion was held to explore methods and strategies to induce the ‘Peaceful Special Economic Zone’ in Gyeonggi Province, which will be a new growth engine for South Korea.

On August 17, Gyeonggi Province hosted the “National Assembly Discussion for Designating the Gyeonggi Peaceful Economic Zone” at the Korean National Assembly with Gyeonggi Province Governor Dong Yeon Kim, Assembly Members Park Jung-hoo-duk, Yoon Hoo-duk, Kim Sung-won, Kim Joo-young, and Park Sang-hyuk, private experts, and Gyeonggi residents.

In his welcoming address, Governor Kim said, “A game changer is something that changes the game of a situation, such as Oppenheimer, who made a decisive contribution to ending World War II through the successful completion of the atomic bomb project. The North Gyeonggi Special Self-Governing Province, which is being promoted by Gyeonggi Province, is a game changer that can develop northern Gyeonggi and Korea. The peaceful special economic zone is one of the keys to the success of the North Gyeonggi Special Self-Governing Province.”

He added, “If northern Gyeonggi becomes independent as the North Gyeonggi Special Autonomous Region, it will have more growth potential than any other region in South Korea… This will allow the region to solve its structural problems, poor finances, disparities and overlapping regulations all at once.”

In the National Assembly discussion, strategies and measures for promoting the need and justifications for designating Gyeonggi Province as a peaceful special economic zone and for developing a peaceful economic zone that utilizes the characteristics of the northern region were deliberated.

Lee Young-sung, a professor at Seoul National University’s Graduate School of Environment, presented on “Directions for Creating a Peaceful Economic Zone in Gyeonggi Province, and said, “The exchanges envisioned by the law are centered on inter-Korean cooperative enterprises, but we need to envision a peace economic zone that prepares for the future, not just direct business exchanges… Among the high-value-added industries that will determine the future prosperity of the Korean Peninsula, we should develop a strategy focusing on industries in which South Korea has international competitiveness and technology, but which are difficult to develop in the Republic of Korea.

In his presentation on “Development Strategy of Northern Gyeonggi Special Self-Governing Province and the Role of Peaceful Special Economic Zone,” Cho Sung-taek, a research fellow at the Gyeonggi Institute, suggested that the “Peaceful Special Economic Zone should become a base for attracting new industries and innovation ecosystems, building a division of labor between South and North Korea, and eventually ensuring sustainability by becoming an international industrial complex with overseas investment.”

In the general discussion that followed, Professor Lim Eul-chul of Kyungnam University, Professor Kim Hyun-soo of Dankook University, researcher Choi Dae-sik of the LH Research Institute, and Vice Governor Oh Who-seok of Gyeonggi Province, chaired by Chairman Kim Yeong-yoon of the Inter-Korean Logistics Forum, expressed their opinions on the establishment of a peaceful economic zone for the development of northern Gyeonggi Province and the realization of an economic community on the Korean Peninsula.

Gyeonggi Province plans to gather opinions from the discussion and engage with the people of Gyeonggi Province to come up with the best legal alternatives and improvements. The province also plans to work closely with neighboring counties and local lawmakers to make recommendations to the Ministry of Unification and the Ministry of Land, Infrastructure and Transport through prior consultations.

Peaceful economic zones, which can be industrial complexes or tourism zones, are jointly designated by the Minister of Unification and Land, Infrastructure and the Minister of Transport at the request of city mayors or provincial governors. Upon designation as a peaceful economic zone, the project developer can receive support for infrastructure construction as well as the reduction of various local taxes and fees, and tenant companies can receive local tax rebates, rent reductions for project sites, and operating funds, which can potentially revitalize the local economy.

The Gyeonggi Research Institute estimates that a special economic zone of about 3.3 million square meters (1 million pyeong) in northern Gyeonggi Province would generate KRW 6 trillion (KRW 9 trillion nationwide) in output and 54,000 jobs (73,000 nationwide).