Tasmania's capital could soon have a new Korean-centred village, with plans in place for a $1 billion dollar development on Hobart's Eastern Shore and hopes are high it could help the state build closer links with Asia.

Plans for the huge housing development have been given the partial go ahead, according to Hobart City Council Alderman and Korean consul Damon Thomas.

Mr Thomas says All Urban Planning has lodged an application with the Clarence City Council on behalf of Dream Tasmania Holdings for a 169-lot subdivision over Pass and Goodwins roads at Rokeby.

The plans show the development will be built in 15 stages with a lot size of 532m2, but that could change due to the results of a field survey.

Mr Thomas is confident the plan will go ahead this time, despite a number of hurdles in the past.

"I'm aware of the solid nature of people behind the application, they are successful developers elsewhere in the world. The fact that they have waited a time now to do this properly, gives me every confidence this time the development will proceed," he said.

He says the development will provide a range of opportunities for broader Tasmania, with the proposed community intended to appeal to both Asian and Australian buyers.

"Not an enclave of just Korean residents. It is very much going to be open to anybody to be there. Given the close connection to Korea and Australia, it does offer tremendous opportunity to increase diversity," he said.