Governor Kim Jintae of Gangwon Province: "Establishing Closed Mine Fund Plans to Foster Medical Cluster"

"We Will Promptly Establish a Mid- to Long-Term Plan for the Closed Mine Fund"
Governor Kim Jintae Vows Full Support for Future Industries
Gangwon Province to Launch First Systematic Five-Year Plan
Focus on Industrial Transformation and Local Economic Revitalization

"We will promptly establish a mid- to long-term plan for the Closed Mine Fund to be used over the next five years for coal mine workers and local residents."

Jintae Kim, Governor of Gangwon Province, made this statement in an interview on August 14, following the publication of the special report series "The Path to a Just Transition." He added, "We will spare no effort in supporting future industrial investments to transform the industrial identity of closed mining areas." Through the series "The Path to a Just Transition," Asia Economy is examining the conflicts that have arisen during the government's coal phase-out and offshore wind farm projects, and reporting on how advanced countries such as the UK, France, and Poland have addressed similar challenges in their own just transition cases.

Jintae Kim, Governor of Gangwon Province. Photo by Asia Economy DB

Gangwon Province began accumulating the Closed Mine Fund in 2001, in accordance with the ordinance on the establishment of the Closed Mine Area Development Fund. Over the past 30 years, a total of 3.7 trillion won in public funds has been invested in the four closed mining areas of Taebaek, Jeongseon, Yeongwol, and Samcheok through this fund. However, the impact has been limited, as the funds were mostly used for short-term projects such as developing tourist facilities and constructing monuments, while the local population continued to decline. The way the Closed Mine Fund was allocated-mainly in the form of general master plans-has been criticized for lacking systematic structure.

In response, Gangwon Province is now launching a five-year mid- to long-term plan for the Closed Mine Fund to revitalize the closed mining regions. This is the first time the fund will be allocated under a mid- to long-term systematic framework. The fund, which is generated from Kangwon Land's profits, is expected to reach an annual budget of about 140 billion won, with a total five-year budget of approximately 700 billion won. Governor Kim stated, "We will use the closure of the mines as an opportunity to foster new alternative industries and to transform the region's identity," adding, "The decline of the coal industry is an inevitable historical trend that many advanced countries have already experienced."

Gangwon Province is focusing the fund's budget on industrial transformation to achieve tangible revitalization of the local economy. Governor Kim believes that the region must have clear future industries capable of creating jobs and reviving the economy. In Samcheok, a preliminary feasibility study is currently underway for the "Early Closed Mine Area Economic Revitalization Project," which includes the establishment of a medical cluster based on a heavy ion accelerator. Governor Kim explained, "Gangwon Province, Samcheok City, the Ministry of Trade, Industry and Energy, and the Korea Mine Rehabilitation and Mineral Resources Corporation are working closely together to pass the feasibility study," and added, "We are also continuously persuading the Ministry of Economy and Finance of the project's necessity and feasibility." He further emphasized, "Establishing a medical cluster carries the message of transforming land once used for coal mining-a place where people risked their lives-into an advanced medical city that saves lives."

June 30, 2025, Do-gye Mining Office of Korea Coal Corporation in Samcheok City, Gangwon Province, a closed mine. Photo by Kang Jin-hyung

Gangwon Province, together with city and county governments, is also pursuing policies to support the reemployment and career transition of workers from closed mining areas, as well as their return to the labor market. Applications for support will be accepted until next month. Governor Kim stated, "We plan to provide a reemployment settlement incentive of 1.5 million won and a workplace adaptation allowance of 500,000 won, primarily targeting the unemployed in closed mining areas." In addition, the province is considering ways to discover stable job projects linked to alternative industries and to provide support using provincial reserve funds.

There are also plans to support business restructuring and remodeling for merchants in closed mining areas. Governor Kim said, "To encourage youth entrepreneurship, we will strengthen package support such as rent reductions and interior design assistance." Gangwon Province is expanding financial support for small business owners whose livelihoods have been immediately affected, by providing management stabilization loans and subsidizing interest rate differences.

Governor Kim emphasized, "It is absolutely necessary to develop industries in the closed mining areas of Gangwon Province, which have long sacrificed for national development. The so-called 'special sacrifice' cited by the government cannot exclude Gangwon's closed mining areas," and added, "To ensure special compensation, we will maximize the efficiency of the Closed Mine Fund projects and make every effort to secure national funding through active consultations with central government ministries."

This special report was supported by the Press Promotion Fund, which is financed by government advertising fees.