**Gangwon Province Achieves Designation of Six Opportunity Development Zones This Year**
The province has accomplished the designation of six Opportunity Development Zones, including Wonju, Gangneung, Donghae, Samcheok, and Hongcheon, with an investment of 881.8 billion won and the creation of 1,588 jobs. These zones are expected to generate significant synergies as they align closely with Gangwon’s key industries, which are being promoted as future growth drivers.
According to Gangwon Province, six development zones—the first in Gangwon—were designated and announced last month. These include the Wonju Buron General Industrial Complex, Gangneung Natural Bio National Industrial Complex, Donghae Bukpyeong National Industrial Complex, Samcheok Hydrogen Specialized General Industrial Complex, Hongcheon Urban High-tech Industrial Complex, and Yeongwol Jungdong-myeon Nokjeon-ri Core Material Industrial Complex, covering a total area of 1,423,157 square meters (about 430,000 pyong).
Opportunity Development Zones are areas that provide comprehensive support such as regulatory exceptions, tax and financial incentives, and improved living conditions for workers, aiming to attract large-scale corporate investments to non-metropolitan regions. Local governments lead the design and operation of these zones, deciding on factors like location, type, and industry. Companies established or starting up in these zones receive full income and corporate tax exemption for five years, followed by a 50% reduction for two years. They also benefit from increased national funding limits. Previously, in June, the first phase of zones was designated in eight areas—Daegu, Busan, Jeonnam, Gyeongbuk, Jeonbuk, Gyeongnam, Daejeon, and Jeju. This second round includes Gangwon along with Ulsan, Sejong, Gwangju, Chungnam, and Chungbuk.
The Gangwon Opportunity Development Zone will focus on fostering specialized industries by zone, such as semiconductors, natural materials, hydrogen energy, bio, and key mineral industries. A total of 62 companies, including leading firms like SJ Innotech, PharmaResearch, GeumgangC&T, DL, CTCBio, and Almonty Korea Tungsten, are participating with a total investment of 881.8 billion won, creating direct employment for 1,588 people.
SJ Innotech plans to establish a secondary battery module production facility in the Wonju Buron Industrial Complex, aiming to start construction by October next year. PharmaResearch intends to invest in expanding production facilities for both prescription and over-the-counter drugs in the Gangneung Natural Bio National Industrial Complex, aiming to begin operation by early 2031.
GeumgangC&T plans to build a hydrogen refiner and catalyst plant, along with a research building in the Donghae Bukpyeong National Industrial Complex. The research center was completed back in February. DL is set to construct a manufacturing plant for liquid hydrogen storage containers in the Samcheok Hydrogen Specialized Complex, with construction slated to begin in the latter half of next year. There’s anticipation for synergies with Donghae and Samcheok’s hydrogen storage and transportation clusters and specialized hydrogen complex projects.
CTCBio plans to develop and install pharmaceutical development and production facilities in the Hongcheon Urban High-tech Industrial Complex by 2028. Currently, a national antibody cluster project is being phased in this location. Almonty Korea Tungsten aims to build a high-purity tungsten oxide refinery in Yeongwol’s core material industrial complex and foster various downstream industries.
The economic ripple effect of these Opportunity Development Zones is expected to be substantial. According to research from Gangwon Research Institute, if investments proceed as planned, an annual production inducement effect of 1.0768 trillion won is anticipated. The institute stated, “The zones were designated with a focus on regions with high feasibility through rigorous validation processes. Promising corporate investments in local areas are expected,” adding, “The synergy is expected to be great as the key industries of the zones align with Gangwon-do’s future industries.” The report also emphasized the necessity of quickly supporting the collaboration governance between local governments and investment companies, local tax reductions, improved living conditions for workers, and expedited support for various permits and incentives.
The selected Opportunity Development Zones account for about 20% of Gangwon Province’s allocation (2 million pyong for metropolitan areas). Gangwon Province plans to strengthen cooperation with cities and counties preparing for additional zone designations while focusing administrative efforts on discovering new zones that align with future industry development strategies. A Gangwon Province official stated, “The designation of these zones has provided a boost to the province’s key future industry initiatives,” adding, “It will emerge as an industrial city attracting businesses and talent.”