Suwon Haengnidan-gil Designated as Korea’s First “Local Coexistence Zone”

The Haengnidan-gil area in Suwon, Gyeonggi Province, has been designated as the nation’s first “Local Coexistence Zone.”

At the end of November last year, Suwon City applied to Gyeonggi Province for approval to designate the “Haenggung-dong Local Coexistence Zone.” Gyeonggi Province approved the application after a review by the Local Commercial District Committee. On January 2, Suwon City officially announced the designation of the “Haenggung-dong Local Coexistence Zone.”

The newly designated Local Coexistence Zone encompasses the Haengnidan-gil area, centering on Hwaseomun-ro in Paldal-gu, and includes the surrounding areas of Jangan-dong and Sinpung-dong, covering a total area of 29,520 square meters. The commercial district has recently become more vibrant as it attracts young people, but concerns have been raised about the risk of gentrification.

Gentrification refers to the phenomenon in which previously underdeveloped urban centers, old neighborhoods, or downtown areas are redeveloped or revitalized, leading to an influx of capital and middle-class or higher-income residents. As a result, rents and property prices rise, pushing out existing residents and small business owners.

Suwon City's Haengnidan-gil area has been designated as the nation's first 'Local Coexistence Zone.' The photo shows the location map.

Going forward, Suwon City plans to systematically manage the implementation of coexistence agreements, and will gradually introduce business type restrictions through consultations with the Local Coexistence Council.

Additionally, in the first half of this year, Suwon City will revise the ordinance on property tax reductions to provide tax benefits to landlords, and will actively support applications for the commercial district revitalization project led by the Ministry of SMEs and Startups.

Once designated as a Local Coexistence Zone, the area becomes eligible for benefits such as tax or fee reductions, relaxed standards for the installation of parking lots, and loans for building reconstruction or major renovations. There are also protections for commercial districts, including a cap on rent increases (5%) and restrictions on certain business types.

Lee Jaejun, Mayor of Suwon, stated, “We will work closely with the Haenggung-dong Local Coexistence Council to create a sustainable and distinctive commercial district, making this a national model for preventing gentrification.” He added, “We will also closely coordinate with the Ministry of SMEs and Startups and Gyeonggi Province to ensure smooth implementation of support for the Local Coexistence Zone and commercial district revitalization projects.”