Extreme water events such as heavy rainfalls due to recent climate change are continually increasing and their scale has also shown an increasing trend. To overcome these natural disasters, this policy study suggests securing lateral river space as an effective method for extreme flood. To support the importance of restoration and expansion of lateral river space, Gumi upstream region of the Nakdong River basin was chosen as a target area and flood reduction analysis of the washland by using LISFLOOD model have been examined. The 500-year frequency flood was simulated for the estimation of possibly occurable flood level and it turns out that the secured lateral river space on the selected site effectively lowers about 0.53 m flood level and reduces the flood damage of the city on the lower reaches of the river. In addition, based on this result, multilateral river space securing plans were compared, and conservation easement and natural disaster insurance were suggested for sustainable and cost-effective alternatives. The costs of land purchase and conservation easement for securing the river space were also compared.