'Controversy Over Private Contract' Incheon Songdo 'K-Pop Content City' Development Project... Public Bidding Planned

The Incheon Free Economic Zone Authority has decided to create a tentative 'K-pop Content City' through a public contest process in connection with the development project of Songdo International City District 8 R2 Block, which has sparked controversy over preferential treatment.

On the 25th, Kim Jin-yong, head of the Incheon Free Economic Zone Authority, held a press briefing and stated, "The Songdo R2 site development project will be promoted transparently through an open proposal contest process," and announced a plan to create a tentative 'K-pop Content City' on approximately 210,000㎡ of land combining R2 Block (158,000㎡) and the nearby B1 and B2 blocks. This plan includes attracting global K-pop entertainment companies and constructing K-pop dedicated arenas, production studios, and academies.

Earlier, in November 2021, the Incheon Free Economic Zone Authority signed a memorandum of understanding on 'mutual cooperation for securing popular culture content' with a consortium composed of major domestic entertainment agencies. The R2 Block is land that the city of Incheon contributed in kind to Incheon Urban Corporation, a public enterprise under the city, during the tenure of former Mayor Song Young-gil in 2013 to reduce debt and improve fiscal soundness. At that time in 2019, the appraised value was in the 520 billion KRW range.

Location map of Songdo 8th District R2 Block [Provided by Incheon Free Economic Zone Authority]

In this situation, recently, when the Incheon Free Economic Zone Authority sent an official letter to Incheon Urban Corporation, the landowner, asking whether it was possible to sell the land through a private contract regarding the R2 Block development, controversy arose over preferential treatment, suggesting that a specific business operator was being considered.

In response, Director Kim said, "We only asked the landowner's opinion regarding the proposal from the business proposer and have never finalized a private contract," adding, "We plan to announce the project as early as September and proceed with the project through a public contest method."

He continued, "The Songdo R2 site is designated as commercial facility land under the current district unit plan, and officetels are permitted. If sold through a highest-price competitive bidding method, there is concern that the business operator might maximize officetels for profitability," adding, "To prevent this, we plan to create a 'K-pop Content City' and make Songdo an international tourist city centered on culture and arts."

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