SMEs Ministry Designates New 'K-Vietnam Valley Zone' in Bonghwa, North Gyeongsang

Creating a Regional Hub for Vitality Based on Korea-Vietnam Exchange

On August 6, the Ministry of SMEs and Startups announced that it held the 60th Regional Specialized Development Zone Committee and newly designated the 'Bonghwa K-Vietnam Valley Zone' in Bonghwa County, North Gyeongsang Province.

The Regional Specialized Development Zone is a system that allows local governments to selectively apply 130 regulatory exceptions specified in the 'Regional Zone Act' to promote specialized projects tailored to the region’s unique characteristics. Introduced in 2004, there are currently 171 such zones operating nationwide.

The newly designated 'Bonghwa K-Vietnam Valley Zone' is a project that leverages the 800-year history of exchanges between Korea and Vietnam. It is based on historical assets such as Prince Yi Yong-sang of the Vietnamese Ly Dynasty who settled in Bonghwa during the Goryeo era and the Hwasan Yi clan village complex. The goal is to create an international exchange-oriented tourism hub that fuses history, culture, and recreation. Through this initiative, Bonghwa County aims to attract more tourists and a larger resident population, thereby securing new growth drivers for the region.

Based on the designation of this special zone, Bonghwa County will implement eight specialized projects by 2030, including the establishment of the K-Vietnam Valley, tourism development around Changpyeong Reservoir, rental smart farms, and the Baekdu-daegan Healing Pet Village, with a total project budget of 347.6 billion won. Ten regulatory exceptions, including those related to the Immigration Control Act, National Land Planning Act, and Housing Act, will be applied to ease institutional restrictions associated with foreign workers' residency, land use, and housing supply.

Noh Yongseok, First Vice Minister of the Ministry of SMEs and Startups, said, "The Bonghwa K-Vietnam Valley Zone is a new attempt to connect the unique historical assets of 800 years of Korea-Vietnam exchange to culture, tourism, and regional economic revitalization. We will support the project so that regional special development zones can become substantial hubs for local growth."

Meanwhile, the committee also deliberated and decided on changes to plans and revocations of some regional specialized development zones. First, the Goseong Shipbuilding and Marine Industry Zone in South Gyeongsang Province will have its designation period extended by three years until 2028 to reflect changes such as operator replacement in some districts and the resumption of construction. The total project budget will be expanded from 945.3 billion won to 1.3706 trillion won by incorporating investment plans for the Naesan, Yangchon, and Yongjeong districts, and regulatory exceptions without future plans for use will be lifted.

Due to the completion of specialized projects or changes in operating conditions, the committee also approved the revocation of four zones at the request of the respective local governments: Seomyeon Footwear Industry Growth Zone in Busanjin District, Busan; Foreign Language Education Zone in Seo District, Incheon; Jeongnamjin Jangheung Saturday Market·Herbal Medicine·Korean Beef Zone; and the Gumi Global Education Zone.

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