[Interview] Incheon Mayor Park Chandae: "Reshaping Incheon's Future Industry Map with ABC+E"

Applying AI to existing industries, including Logistics AX and connected cars
Building on biotechnology production capacity to strengthen R&D and startup competitiveness
Preparing next year's budget based on recommendations from the Fiscal Budget Reform Task Force
Continuing cooperation on Hana Financial Group's KRW 350 billion investment plan
Planning a task force to get development around the former Songdo Amusement Park back on track

"We will create a new industrial map centered on Incheon's strengths in AI, biotechnology, culture, and energy."

In an interview with The Asia Business Daily on Oct. 14, Incheon Mayor Park Chan-dae cited "ABC+E," combining the "A" of artificial intelligence (AI), the "B" of biotechnology, the "C" of K-culture, and the "E" of energy, as a future growth engine for Incheon. "We will build on the strengths of these industries, attract new businesses and investment, and create more good jobs so that the resulting growth leads to higher incomes for citizens," he said.

His plan is to apply AI to existing industries, including logistics at airports and ports through "Logistics AX" and the connected-car sector, while expanding the foundation for research and development and startups in biotechnology, building on the city's world-class production capacity. He also said Incheon would harness its assets in culture and energy to develop new growth engines.

Mayor Park named establishing Incheon's status as the world's No. 1 biotechnology city, revitalizing culture in the old downtown, and linking renewable energy, including offshore wind power, to income for citizens as key priorities under the "ABC+E" strategy. "By 2030, we will usher in an era in which the average annual salary for jobs in Incheon reaches KRW 55 million and transform the city into one of South Korea's top five economic hubs," he stressed.

Incheon Mayor Park Chan-dae is interviewed by The Asia Business Daily at Incheon City Hall in Namdong-gu, Incheon, on Oct. 14, 2026. Photo by Kang Jinhyeong.

The following is a question-and-answer session.

- What are the specific plans for implementing the "ABC+E" strategy?

▲In AI, we plan to boost productivity by bringing AI into the logistics industry and create new technologies and businesses. On Sept. 30, the Incheon Logistics AX Alliance was launched with companies, universities, and research institutes working together. We will support the use of AI to manage the movement of cargo through airports and ports more quickly and efficiently, and help companies develop technologies they can use on-site.

We will also bring AI into the automotive industry. Using the Connected Car Certification and Evaluation Center in Cheongna, we will test technologies that allow vehicles to exchange information with nearby vehicles and road infrastructure, and expand the infrastructure for checking security issues, including hacking.

The key to biotechnology is to build on our world-class production capacity by strengthening research and development and startup competitiveness. According to the Bank of Korea's Incheon branch, as of 2024, Incheon accounted for 61.8% of South Korea's pharmaceutical and biotechnology industry output and 78.9% of its biopharmaceutical exports. Yet just 2.5% of the country's pharmaceutical and biotechnology companies are based in Incheon. Production is concentrated among a small number of large companies, while the foundation for research and development, startups, and small and medium-sized enterprises supplying materials and equipment is relatively limited.

Against this backdrop, the K-Bio Lab Hub, whose construction began last month, is drawing attention because it will provide infrastructure to support biotechnology startups from research and development through startup creation and commercialization. We are also pursuing the establishment of the Incheon Institute of Biotechnology and Science to conduct research into foundational technologies in the field and train specialized personnel. We will build a biotechnology industry ecosystem in which production, research and development, startups, and commercialization are connected within Incheon, and large and small businesses grow together.

Incheon Mayor Park Chan-dae and members of the Incheon Logistics AX Alliance take part in a launch ceremony at the alliance's inaugural event at Harbor Park Hotel in Incheon on Sept. 30, 2026. Photo courtesy of Incheon Metropolitan City.

Culture will serve as a catalyst for bringing new vitality to the old downtown. Various regulations make it difficult to attract new industries or pursue development there, but culture is not subject to such restrictions. We will draw on Incheon's historical and cultural assets to create new growth engines for the old downtown. By connecting cultural assets in the old downtown, including Munhak Stadium, Jemulpo, and Bupyeong, we will encourage tourists to stay longer in Incheon and help revitalize local businesses.

In energy, we plan to make use of Yeongheung's power-generation facilities and the offshore wind resources of the Yellow Sea. This will enable us to provide a stable supply of energy needed by future industries and ensure that the energy industry contributes to the growth of local businesses and job creation. We are working on more specific implementation plans for culture and energy.

- Last month, Incheon's "Fiscal Budget Reform Task Force" issued recommendations to strengthen fiscal soundness. The recommendations projected that the city could reduce its fiscal burden by KRW 374.9 billion over four years by reorganizing cash-based support programs. However, civic groups have criticized the move, asking, "Why are benefits citizens have been receiving being cut? What programs are you planning to pursue?" It seems necessary to explain what programs will be funded through these major spending cuts.

▲I am a former accountant. Even when listening to residents' concerns or receiving work reports, I worry about the budget. I find myself first thinking about how much more will be needed and how we will secure the money. After taking office, I reviewed Incheon's finances and found that the situation was worse than I had expected. We did not even have sufficient funding for the budget needed to cover this entire year. We were short of funds for essential expenses, such as subsidies for the quasi-public bus system and civil servants' salaries.

The shortfall was around KRW 640 billion, but only KRW 180 billion was immediately available. Under these fiscal conditions, it was difficult not only to launch new programs but even to maintain existing ones reliably. That is why we formed the task force and reviewed Incheon's finances over about 80 days. The task force recommended adjusting cash-based welfare programs and normalizing public utility rates, among other measures.

However, the task force's recommendations are not policies that have been finalized. Predictability and trust are important in public administration, and we cannot suddenly reduce benefits that citizens are already receiving or counting on. We also need to carefully examine whether programs overlap with national initiatives, how effective they are, and what impact they have on citizens. I believe we must explain the results to citizens in detail.

The most important task now is to prepare next year's budget properly. Based on the task force's recommendations, we will review the need for and effectiveness of every program and decide how to prioritize the use of limited resources. Our efforts to resume Incheon e-Eum, the local currency, as soon as possible despite the difficult fiscal situation were also driven by our priority of putting citizens' lives first. We are working to secure more national government funding and are also preparing ways to generate revenue through the platform so that the program will not have to be suspended again.

At the same time, we must continue investing in the development of future industries, including AI and biotechnology, and in improvements to the old downtown and transportation infrastructure. To this end, we will also work to secure national government funding through the government and the National Assembly.

- Since Hana Bank failed to be selected as one of Incheon's depository banks, some have questioned whether an investment in the KRW 350 billion Hana Financial Group Shared Growth Fund will go ahead.

▲First, I would like to make clear that the selection of the city's depository banks and Hana Financial Group's investment and cooperation projects in Incheon are separate matters. Last month, Shinhan Bank was selected as the primary depository bank and NongHyup Bank as the secondary depository bank under established procedures and criteria. The business agreement signed with Hana Financial Group last August is a separate initiative that should continue independently.

Since choosing Cheongna in Incheon in 2012, Hana Financial Group has established an integrated data center and the Hana Global Campus, and recently opened its group headquarters there as well. The group has maintained a long-standing partnership with Incheon.

In August, we signed a business agreement with Hana Bank, Hana Securities, and the Korea Technology Finance Corporation. Its key elements include KRW 150 billion in guaranteed loans for companies in future industries such as AI and biotechnology, the creation of the KRW 200 billion Incheon Unicorn Fund to support companies with strong growth potential, and shared-growth support for low-income residents, small business owners, and young people.

In particular, the Incheon Unicorn Fund will support local companies with strong technological capabilities in securing investment and growing, and is also linked to the ABC+E strategy. Since each type of support outlined in the agreement, including financial support, follows a different implementation process, we are discussing specific timelines with the relevant organizations. We will continue our cooperation with Hana Financial Group and carefully ensure that the agreement's KRW 350 billion in financial support and fund creation lead to tangible results.

- The extension of Seoul Subway Line 7 to Cheongna is expected to open more than three years later than originally anticipated, while the economic viability of extending Incheon Subway Line 1 to Songdo's District 8 remains a key issue. Do you have a plan to address these challenges?

▲For the Seoul Subway Line 7 extension to Cheongna, the key tasks are shortening construction time on difficult sections and securing trains. We are facing challenges on both fronts, but our current focus is on procuring trains.

There are concerns that train deliveries will be disrupted because the existing supplier is undergoing rehabilitation proceedings. We are discussing options including leasing trains currently operated by the Seoul Metropolitan Government, using its reserve trains, and temporarily using older trains after safety inspections and modifications.

However, reserve trains appear to be difficult for the Seoul Metropolitan Government or Seoul Metro to provide because they are needed for their intended purpose. Older trains could be used for a temporary opening, but that would not be a long-term solution, so I believe it would be better to lease trains operated by the Seoul Metropolitan Government. Because the order volume for the Cheongna extension itself is small, securing a successful bid is also difficult. In the longer term, we are considering placing a joint order for trains with the Seoul Metropolitan Government.

Incheon Mayor Park Chandae answers questions at a residents' meeting on the extension of Seoul Subway Line 7 to Cheongna, held at the Cheongna 3-dong Administrative and Welfare Center on July 11. Provided by Incheon City, July 11, 2026.

We are working with the private sector to address difficult construction conditions, including the geology and bedrock along the route, and are exploring ways to bring forward the expected opening from 2030 to 2029 or earlier. We plan to brief residents on the progress around next month.

The feasibility assessment for the Incheon Subway Line 1 extension to Songdo is currently being conducted by the Korea Development Institute (KDI), and the final B/C (benefit-cost) ratio has not yet been released. A preliminary review conducted by the Incheon administration under the eighth elected mayor projected a ratio of around 0.9, but lower figures have been raised during the assessment. Those working on the project feel that the points put forward by Incheon are not being properly evaluated.

We believe it is only reasonable for the feasibility assessment of the Incheon Subway Line 1 extension to Songdo to pass, in line with precedents for other urban rail projects. We continue to present the case for its feasibility, taking into account population and demand for urban rail, and are responding by conveying our views to the National Assembly and the government.

- I understand that a task force will be formed to get the long-stalled development project around the former Songdo Amusement Park back on track. A development blueprint was already presented in 2024, but the project has made little progress due to various outstanding issues. There are doubts about whether this task force can find solutions. How much progress can be made on the development of the Songdo Amusement Park area during your term?

▲Songdo Amusement Park was once one of Incheon's leading tourist destinations. However, after it closed in 2011, the development project was delayed for a long time, continuing to inconvenience local residents. A master plan to develop eight blocks in the area was drawn up in 2024, but progress has been slow due to soil contamination, issues surrounding the used-car export complex, and the commercial viability of each zone. In particular, each of the eight blocks has a different project operator, and the interests of private companies and public agencies are also complex.

We need to clarify responsibility for soil contamination cleanup and ensure that the work is carried out. Outstanding issues such as the illegal outdoor storage of used cars also require cooperation among relevant organizations, making them difficult for any one department or project operator to resolve on its own. We therefore plan to form a task force bringing together Incheon City, Yeonsu-gu, the local district government with jurisdiction over the area, and other relevant organizations to work through these issues together.

We will discuss in one place issues that have previously been handled separately, and determine solutions and the order of implementation for each point of contention. We will also take a close look at the reasons for delays in each zone. Since most of the projects are being pursued by private operators, we will listen carefully to their views and actively resolve the issues that Incheon City can address.

Rather than promising to complete the entire project during my term, I intend to focus on finding ways to resolve the key issues obstructing its return to normal and advancing it to the point where subsequent projects can actually move forward. We will also explain progress so that residents can see the changes for themselves, and I will personally keep a close eye on the work.

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