W38b forest resource center in Andong selected as 11th regional revitalization fund project

A facility capable of collecting and processing up to 500,000 tons of forest resources a year — including timber damaged by wildfires — will be built in Andong, North Gyeongsang Province.

The Ministry of Planning and Budget, the Ministry of Interior and Safety and the Financial Services Commission announced Tuesday that the Andong Forest Resource Collection Center project had been selected as the 11th project under the Regional Revitalization Investment Fund.

The project will receive a total of 38 billion won ($28.3 million). The facility will collect and process "unused forest biomass" — timber left abandoned in forests or underutilized due to low commercial value — to produce materials for construction and furniture as well as wood feedstock for biomass power generation.

About 70 percent of North Gyeongsang Province's total area of 1.84 million hectares — roughly 1.29 million hectares — is forested, yet some of that forest resource goes unused. The urgency of collecting and utilizing unused forest biomass, including fire-damaged timber, grew after a large wildfire in March last year destroyed vast stretches of forest across the region.

The government expects the center, once operational, to convert abandoned timber into raw materials for high-value products, revitalizing the local forestry and wood industries. Timely removal of timber remaining in forests is also expected to reduce the risk of further wildfires and other forest disasters.

The project will go through the permitting process in the second half of this year, with construction set to be completed in the first half of next year before full operations begin.

The Regional Revitalization Investment Fund works by having local governments and the private sector identify projects, with government fiscal resources, the local extinction response fund and a mother fund established by Korea Development Bank providing seed capital to attract private investment. The structure is designed to drive regional projects at a scale at least 10 times the mother fund's investment.

The mother fund was established at 300 billion won each in 2024 and last year, and at 200 billion won this year. Beyond investment and risk-sharing through the mother fund, the government plans to offer additional support — including shortened or waived fiscal investment reviews for local governments, priority loan guarantees through the Korea Housing and Urban Guarantee Corporation, and expedited permitting.