Kimhyonggwon lies on the southeastern edge of the Kaema Plateau, and is covered with mountainous terrain. The Hamgyong Mountains and the Puksubaek Mountains both pass through the county. The highest peak is Paeksan. There are many streams; the chief among them is the Hochon River. Some 88% of the county's area is occupied by forestland.
There are several hydroelectric power stations in the county. There is also a great deal of dry-field farming; the chief local crops include hops and flax. In addition, potatoes, wheat, soybeans, and barley are grown, and livestock are also raised. In addition, there is some manufacturing and mining, with deposits of gold, nickel, graphite, and iron sulfide found in the county. Kimhyonggwon is served by road, but not by rail.