With push for free economic zone and expansion of R&D hubs, Suwon moves to reinvent itself as Korea’s new growth engine
Since taking office in 2022, Suwon Mayor Lee Jae-joon's goal has been to transform the city in ways people can experience and support. This includes an ongoing project to host local businesses with cutting-edge technology, while boosting communications with the local community.
Three-and-a-half years into his mission, Lee is voicing confidence in making Suwon Special City a "Brain City" centered on research and development. The other leg is to make Suwon an international cultural city, which is already seeing progress with his declaration of "2026, Visit Suwon Year."
"I've promised the (Suwon) citizens that I will renew Suwon Special City and make the citizens shine. For the last three years and seven months, I've worked so hard to keep my pledge," Lee said.
The "special city" designation is a unique administrative category for cities that operate as a basic local government while exercising functions typically delegated to metropolitan authorities. With a population of 1.23 million, Suwon is the most populous nonmetropolitan city in Korea, surpassing even Ulsan.
As leader of the special city, Lee says he has been pushing for effective policies that will improve citizens’ lives.
"I’ve pursued policies that the people can feel have been aimed at helping them effectively, ensuring that citizens can live better lives," he said, emphasizing the "Saebit,” or New Light, series of policies ranging from child care and public petitions to the New Light Talk Talk forum, which invites citizens to propose ideas for municipal policies.
A major pillar of Suwon’s strategy is to attract more high-tech companies and secure designation as a free economic zone, with the aim of becoming a leading regional hub for business and R&D.
Attracting businesses
"Beginning with an investment agreement with SD Biosensor on the first day of my inauguration, we have so far signed deals with 24 companies," Lee said, noting that the city is pushing to attract investment from local businesses.
In 2025 alone, Suwon inked investment deals with 14 companies.
These firms are mostly those known as "strong small companies" in their respective industries, along with medium-sized firms, ranging from information technology, semiconductors and biotech to AI, and application and gaming software. The total investment amount is projected to be over 300 billion won ($204.7 million).
"Suwon is actively promoting measures such as site support and fast-track administrative approvals. We are making a 'city where businesses can thrive' by providing financial support, diversifying export markets, and attracting talented individuals," he said.
FEZ designation
An immediate priority for Lee is securing the city’s designation as a free economic zone in November. Free economic zones are created to improve the business environment for foreign-invested companies and enhance living conditions for foreign nationals.
Such zones are designed to attract greater foreign investment, strengthen national competitiveness and promote more balanced regional development.
"We need a new driving force for Korea to move a step higher, and an FEZ can play that role. We will make Suwon a 'K-Silicon Valley' that leads research in state-of-the-art technology in Korea. For this, there will be an all-out effort for Suwon to get the FEZ designation from the Ministry of Trade, Industry and Resources in November," the mayor said.
Under Lee's vision, the city would become the center for pioneering companies in science and tech, encompassing artificial intelligence, semiconductors and bio-based technologies.
Lee said the Suwon R&D Science Park project, recently launched after more than a decade of delays, was proceeding smoothly. The building plan and site designation of the research compound were announced in January, and it is set for completion in March 2027.
The Tapdong Innovation Valley broke ground in February, and is set to be completed in December 2028. The project aims to create a business complex focused on technology and R&D.
In a request to Prime Minister Kim Min-seok in January, the mayor asked for the government's support for Suwon's designation as an FEZ.
"I've explained that the Suwon FEZ would be the perfect place to realize the government's balanced development model, with 'research in Suwon, manufacturing in regional areas,'" he said.
Taking part in Korea's development
He also made requests for other key projects, such as the relocation of Suwon Air Base.
Lee suggested forming a panel to address regional disagreements about the Suwon base location, linking the project to the expansion of the area's traffic network and supplying housing in the capital region.
The third part of the recommendation was the designation of King Jeongjo's Royal Parade as a key cultural festival of Korea, and providing government support for one of Suwon's most notable cultural events.
Suwon is known as the home of Hwaseong Fortress, built in the 18th century during the Joseon era under King Jeongjo's orders.
The king's parade is one of the city's three main festivals, along with the Suwon Hwaseong Culture Festival and the Suwon Hwaseong Media Art.
"We will make the three festivals international events, and Suwon will spearhead the culture and tourism of Korea,” he said.
"These three suggestions show Suwon's willingness to do its part as an axis of the national strategy. Suwon will stand together so Korea can grow and leap forward," Lee said.
New Light series
From its launch, Lee's goal has been to establish policies that the people can actually feel, which has materialized in the form of the New Light series.
The New Light Care project reached out to 5,193 citizens in 2025, marking a 353 percent surge in usage of its services and a 142 percent increase in applicants.
Suwon also boasts a successful public petition program, led by veteran team leaders with at least 20 years of experience in the field, Lee said.
The city was commended with the highest presidential award honors in the Ministry of the Interior and Safety's evaluation for model administration for two straight years with the veteran-based petition program in 2024 and the New Light Care system in 2026.
A key element of the series has been the Suwon Enterprise New Light Fund, which seeks to revitalize the economy of the central city in Gyeonggi Province by investing in core technology companies for the "fourth industrial revolution," small and medium-sized ventures and early-stage startups.
The fund raised 314.9 billion won for its initial phase and plans to raise 445.5 billion won for the second phase, with 31.5 billion won already invested in 19 up-and-coming firms.
The New Light House Repair Project, which seeks to improve living conditions for low-income groups, has supported a cumulative 2,100 households so far, and plans to reach 3,000 by the end of the year.
Lee said the New Light Talk Talk forum has accumulated over 180,000 subscribers, establishing itself as a space for citizen communication. Some 4,500 suggestions were submitted, with 80 becoming an official policy through deliberation.
Next step for the special city
Lee said he asked Shin Jeong-hoon, the chair of the National Assembly's Public Administration and Security Committee, in December to swiftly implement the act on the status of the special city.
"The key is to provide a clear basis for the legal status of the special city, budget benefits for the expansion of the administrative functions of the special city, and transfer of the clerical work related to the special city," he said.
This includes a revision of the Local Autonomy Act to designate the special city as a separate administrative unit distinct from the categories of city, gun (county), and gu (district), and accordingly expand the budget for the stable operation of the municipal government.
"If the special city can move forward with the substantive powers as a base city, it can lead joint growth with the surrounding regions and contribute to national growth," Lee said.
(minsikyoon@heraldcorp.com)
(fob140@heraldcorp.com)
minsikyoon@heraldcorp.com
fob140@heraldcorp.com
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