Gyeonggi Province Approves 'Local Coexistence Zone' for Haengnidan-gil in Suwon
Laying the Foundation for Full-Scale Implementation of Local Commercial Area Coexistence Model
Jangan-dong and Sinpung-dong in Suwon... Leading Efforts to Prevent Gentrification
The area of Jangan-dong and Sinpung-dong in Suwon, commonly known as 'Haengnidan-gil,' will be designated as a 'Local Coexistence Zone.' This marks the first such case nationwide since the enactment of the Local Commercial Area Act in August of last year. Once designated as a Local Coexistence Zone, benefits include restrictions on rent increases based on coexistence agreements, relaxed standards for installing annexed parking lots, tax reductions, and loan support.
Gyeonggi Province held the first Gyeonggi Province Local Commercial Area Committee meeting of 2025 on the 19th. Provided by Gyeonggi Province
Gyeonggi Province announced on the 26th that it held the first Gyeonggi Province Local Commercial Area Committee meeting of 2025 on the 19th and approved the agenda item for designating the Haenggung-dong area in Suwon as a Local Coexistence Zone, as requested by the city of Suwon.
The Haenggung-dong Local Coexistence Zone centers on Jangan-dong and Sinpung-dong, the heart of 'Haengnidan-gil.' Of the total area of 29,520 square meters, commercial zones account for 76%.
A Local Coexistence Zone refers to an area where rents are rapidly rising, or there is concern they may do so due to commercial revitalization. These zones are designated to protect sustainable commercial districts by stabilizing rents. Under the 'Act on Coexistence and Revitalization of Local Commercial Areas,' mayors, county governors, or district heads may designate these zones, but must first obtain approval from the provincial governor.
Gyeonggi Province explained that this approval has laid the institutional foundation for the full-scale implementation of policies supporting coexistence in local commercial areas. Along with approving the original proposal, the committee also presented recommendations to ensure the stable establishment and effectiveness of the system.
First, since the designation of a Local Coexistence Zone allows for special exemptions that relax the standards for annexed parking lot installations, the committee stressed the need to prepare supplementary measures to address parking issues, taking into account the increased demand due to commercial revitalization.
Additionally, the committee recommended that clear administrative procedures be established in consultation with the Ministry of SMEs and Startups to prevent confusion during the implementation of various exemptions and support measures that apply following the zone's designation.
Furthermore, the committee emphasized the need to strengthen management and oversight so that the penalty provisions for non-compliance with coexistence agreements, as stipulated by law, can be enforced effectively.
Gyeonggi Province plans to officially notify Suwon of the approval, after which Suwon will complete the necessary procedures to finalize the designation of the Local Coexistence Zone.
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