Seeking Ways to Revitalize Development of Incheon Songdo International Business District 'Stalled for Years'

Panoramic view of Songdo International Business District
Photo by Incheon Free Economic Zone Authority

[Asia Economy Reporter Park Hyesook] The Incheon Free Economic Zone Authority is devising a new strategy to revitalize the development of the Songdo International Business District, where major projects have been stagnant for several years.

On the 21st, the Incheon Free Economic Zone Authority announced that it has launched the "Songdo International Business District Development Revitalization Strategy Establishment Project." The project is being carried out by the global consulting firm Infac GCF, which participated in establishing the development strategy for Incheon Luwon City, under a contract with Songdo International City Development Co., Ltd. (NSIC), and will continue until the end of the year.

The main contents include analysis of the business conditions of the Songdo International Business District, establishment of development strategies, investment attraction strategies, and implementation plans.

To comply with the designated purpose of the Songdo International Business District and strengthen public interest review, the Incheon Free Economic Zone Authority plans to form the "Songdo International Business District Revitalization Strategy Expert Advisory Group" to participate throughout the project.

The advisory group will be led by the Incheon Research Institute, with Vice President Heo Donghoon of the Incheon Research Institute serving as the head. Experts in urban planning, real estate development, accounting, and consulting will participate to provide advice on necessary matters for the project.

The Songdo International Business District, a free economic zone, covers a total area of 5,803,000 square meters, twice the size of Yeouido in Seoul. Since the initial development plan was established in 2003, continuous development projects have served as a stepping stone for the growth of the Incheon Free Economic Zone.

However, due to changes in development conditions and market environment, shifts in domestic and international investment conditions, and a paradigm shift in urban development, the development projects for international business sites and commercial sites have been significantly delayed for a considerable period.

In particular, although Incheon City handed over development rights to private developers aiming to create a world-class business hub, major projects such as the international hospital, the second international school, and the second phase of the art center construction have been drifting for a long time.

NSIC is a company established by POSCO Construction and the U.S. real estate developer Gale International with a 30:70 equity ratio, and has been developing the Songdo International Business District since 2005.

However, due to conflicts between POSCO Construction and Gale, the project was halted for three years from 2015 to 2018, and eventually POSCO Construction went through a series of events selling Gale's shares it had secured to new investors.

Currently, the Songdo International Business District has a progress rate of 74%, excluding the undeveloped area of 1,507,000 square meters from the total area of 5,803,000 square meters.

An official from the Incheon Free Economic Zone Authority stated, "We expect that by the end of this year, when the project is completed, new development revitalization standards for the Songdo International Business District that respond to the changed internal and external environment will be established."

This content was produced with the assistance of AI translation services.