A new forest resource collection center will be established in Andong, Gyeongbuk, with a total investment of 380 billion won, aimed at collecting and processing 500,000 tons of forest resources annually. This initiative is designed to enhance the utilization of local forest resources and support the revitalization of the regional forestry and economy through a combination of public and private investments.
On September 8, the government announced that the 'Gyeongbuk Andong Forest Resource Collection Center' project has been selected as the 11th initiative under the regional revitalization investment fund. Korea Growth Financial Investment, which manages the fund, has chosen this project.
The project will involve a total investment of 380 billion won. The forest resource collection center will collect and process unused forest biomass to produce materials for construction, furniture, and biomass power generation.
Unused forest biomass refers to forest products that remain in the woods or have low added value, making them difficult to utilize. This includes wood generated during timber production and forest management, as well as forest byproducts resulting from natural disasters such as pests, wildfires, and floods.
This project aims to create new added value by utilizing Gyeongbuk's forest resources while also addressing the timely collection of neglected wood, including timber damaged by wildfires.
Gyeongbuk has approximately 1.29 million hectares of forest, accounting for about 70% of its total area of 1.84 million hectares. Given the high proportion of forested land, there is significant potential for utilizing forest resources, although some resources are currently underutilized.
In particular, the need to collect and utilize unused forest biomass, including timber damaged by the large wildfire that occurred in Gyeongbuk in March of last year, has increased. The establishment of the forest resource collection center is expected to facilitate the collection of unused wood in the forest, turning it into a local resource while also reducing the risk of forest disasters.
The project is set to undergo permitting procedures in the second half of this year, with construction expected to be completed in the first half of next year, leading to full-scale operations.
The regional revitalization investment fund is a local-led investment approach where local governments and private entities identify projects that meet regional needs and conditions, with the government’s financial contributions serving as a catalyst for attracting private investment.
Government finances, the fund for responding to local extinction, and the Korea Development Bank are contributing to the fund, while local governments and private entities establish sub-funds and special purpose companies (SPCs) to implement projects at a scale at least ten times the amount invested by the main fund.
In addition to the main fund's catalytic investment and risk-sharing, the government is providing incentives for promoting regional revitalization projects, including expedited reviews of local government financial investments, exemptions, and special guarantees from the Housing and Urban Guarantee Corporation (HUG) for senior loans.
The government plans to continue supporting regional economic revitalization through the regional revitalization investment fund. It will provide education and consulting through roadshows for local governments and organize matching days for fund managers, investors, and local governments to enhance fund operations.
* This article has been translated by AI.
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