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Seoul expands greenbelt zones to stimulate investment

Published: 25 Feb. 2025, 18:12

Acting President Choi Sang-mok speaks during a Cabinet meeting at the government complex in central Seoul on Feb. 25. [MINISTRY OF ECONOMY AND FINANCE]

The government will expand the total area of greenbelt zones eligible for development, marking the first such expansion in 17 years, acting President Choi Sang-mok said Tuesday.

This decision, the first of its kind since 2008, is part of the government's efforts to stimulate investment amid an anticipated economic slowdown driven by unfavorable trade conditions, political uncertainty and sluggish recovery in domestic demand.

“This initiative will actively support various strategic projects at both national and regional levels, including industrial complexes, logistics hubs and urban development projects,” Choi said during a meeting with ministers on economic affairs.

“Corporate investment is the lifeline of our economy,” he added, pledging all-out efforts to support investment by local businesses.

Under the new measure, 15 projects have been designated as national and regional strategic initiatives outside the capital area, mostly in the central and southern parts of the country, according to the Ministry of Economy and Finance.

Of those, six projects, spanning a total of 42.03 square kilometers (16.23 square miles), will be granted exemption from the maximum amount of greenbelt area that can be released. Three of them are in Busan, while the rest are in Gwangju and Daejeon.

“The designation of the 15 projects is part of a broader effort to stimulate local investment and job creation,” the ministry said.

The ministry estimates that the projects will require a total of 27.8 trillion won ($19.4 billion) in investment and create various economic benefits, including approximately 380,000 new jobs.

The government plans to implement the greenbelt exemptions in phases beginning in the first half of next year.

Yonhap