It lies in the province's interior, and is bounded by Tongch'ang on the east, Kusŏng and T'aech'ŏn to the south, Ch'ŏnma to the west, and Ch'angsŏng and Sakchu to the north.

The Taeryong River (대령강) flows through the county's centre, joined in its course by many fast small streams.

Forestry, including lumber as well as the harvesting of wild herbs and fruits, is a major local industry; Taegwan is home to the province's largest lumber base, which specializes in wood for mining and construction applications.

Gold and graphite are mined in the county, and a small hydroelectric generator harnesses the Taeryŏng River's stream.

[3] The P'yŏngbuk Line of the Korean State Railway passes through the county, on its way between Chŏngju and Ch'ŏngsu.