Conflict Between Incheon Economic Free Zone Authority and Airport Corporation Over Eulwangsan Development

Global Complex Video Industry Cluster Development
Significant Time Gap in Designation of Free Economic Zones

Aerial view of Eulwangsan I-Pers Hill.

Incheon Free Economic Zone Authority (IFEZA) and Incheon International Airport Corporation (IIAC) are clashing over a project to develop a global complex video industry park near Eulwangsan Mountain close to Incheon Airport. IFEZA, which wants to expedite the project, plans to apply for designation as a free economic zone to the Ministry of Trade, Industry and Energy by next month. However, IIAC is requesting a schedule adjustment, citing the need for project feasibility review and consultations with the Ministry of Land, Infrastructure and Transport.

According to industry sources on the 23rd, IFEZA held a tripartite meeting the day before with the private developer i-Pers Hill and IIAC, both participants in the project, and announced plans to apply for free economic zone designation in March. Once designated as a free economic zone, landowners cannot oppose compulsory land acquisition, which can be done at appraised or development cost prices. However, IIAC countered in a statement the same day, saying "our position differs." IIAC explained that considering the project's appropriateness, participation methods, and government consultations, the application for free economic zone designation should be postponed.

The project involves developing an 807,733㎡ area around Eulwangsan Mountain on Yeongjong Island into a comprehensive filming studio, media theme park, exhibition and convention center, hotel, and tourism facilities. IIAC, which owns 86% of the project site, had initially been skeptical about the project, fearing controversies due to profits from development. In particular, IIAC is concerned about a repeat of incidents like the ‘Daejang-dong scandal,’ where private companies reaped massive development profits. For this reason, IIAC initially insisted the project be led by the public sector but only joined as a project implementer in January this year.

Unable to reconcile their differences, IFEZA and IIAC have agreed to hold a working-level meeting in early next month to discuss the issue again. Accordingly, the application for free economic zone designation is likely to be delayed beyond the original plan.

IIAC stated, "We plan to conduct a thorough project review going forward and negotiate to implement the project in a manner that aligns with the public interest."

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