North Gyeongsang Province, Andong sign forest development MOU with LX International for W150b investment

North Gyeongsang Province is moving to transform its vast forest resources — among the largest in the country — into a future industry, laying the groundwork for a new growth model for South Korea's forestry sector.

The province and Andong signed an investment memorandum of understanding Monday with LX International and Gyeongbuk Forest Resource Collection Center for the establishment of a forest resource collection center, at the provincial government building.

About 20 people attended the signing ceremony, including North Gyeongsang Governor Lee Cheol-woo, Andong Mayor Kwon Gi-chang, LX International CEO Gu Hyeok-seo and Gyeongbuk Forest Resource Collection Center CEO Kim Hyeong-ok.

The four parties will invest a combined 150 billion won ($97.4 million) through a regional revitalization investment fund from this year through 2030.

As the first phase, 38 billion won will be invested in Andong to build a forest resource collection center and a wood chip manufacturing facility, with plans to expand the project to northern North Gyeongsang areas including Uljin and Bonghwa.

The project is expected to create 42 new jobs.

Once completed, the initiative will establish a supply chain that converts timber damaged by wildfires and byproducts from forest thinning into industrial raw materials such as wood chips.

North Gyeongsang Province will provide support for permits, licensing and administrative procedures, as well as policy financing linked to the regional revitalization investment fund.

"We are grateful for North Gyeongsang Province's active investment support," LX International CEO Gu said. "We will contribute to sustainable forest management and regional economic revitalization through the conversion of unused forest resources into energy and their systematic use, and will work with the province to build a stable biomass supply system."

Governor Lee said the province's new forestry policy direction is to "plant hope again in areas scarred by wildfires and turn forests into an industrial asset that creates jobs." He added that the province would spare no administrative support to help North Gyeongsang become the center of South Korea's forestry industry.