Paju, a city in Gyeonggi Province, has launched a project to build a large-scale mixed-use city spanning industry, tourism and housing in the inter-Korean border region. The blueprint for the Peace Economic Zone, with a total project cost of 2.2 trillion won, has taken shape.
Paju said on the 16th that it will conduct a preliminary open call for prospective private developers to designate the Peace Economic Zone until the 14th of next month. The process follows the Act on the Designation and Operation of Peace Economic Zones, and aims to secure private participants ahead of the application for zone designation.
The target site covers about 7.6 square kilometers across Wollong-myeon, Paju-eup and Munsan-eup. On land amounting to 2.6 times the area of Yeouido (2.9 square kilometers), a complex development combining industrial, tourism and residential functions has been envisioned.
The zone will be developed in six proposed unit development districts. The core of the blueprint is the combination of the symbolism of inter-Korean exchange and advanced industries.
Industrial District A will host companies from the Kaesong Industrial Complex and the pharmaceutical industry, while the Inter-Korean Logistics District will be fostered as an inland logistics hub for the northern part of the greater Seoul area. The remaining industrial districts will attract artificial intelligence (AI) and advanced food technology industries, respectively.
Tourism and residential functions are also included. The Culture and Tourism District will feature an integrated resort and sports facilities, while the Complex District will house apartment complexes and climate response technology industries. The plan aims for a self-sufficient city that ties together industrial attraction, living conditions and tourism infrastructure.
However, the content of each district and the total project cost may change during the establishment of the development plan and the zone designation process. The final project cost will be confirmed according to the business plan of the future development project operator.
Eligibility to participate in this open call is granted to businesses that intend to enter the zone and carry out cooperation projects under the Inter-Korean Exchange and Cooperation Act. Their equity capital in the most recent year must be at least 10% of the estimated project cost for each district. Companies wishing to participate can submit the relevant documents directly to Paju's Peace Economy Division by the 14th of next month.
This open call is not a procedure that grants the legal rights and obligations of a development project operator. The selection of the operator will be conducted separately after the zone is designated.
"We hope this preliminary open call will be the first step in establishing the role of the private sector in the designation and creation of the Paju Peace Economic Zone," said Hwang In-bae, head of Paju's Peace Economy Division.
