[Initial Reaction] Yonsei University is Allowed, but Inha University is Not?

[Asia Economy Reporter Park Hyesook] The Incheon Free Economic Zone Authority under Incheon City and Inha University are embroiled in controversy over land sales in Songdo International City. Public opinion is turning into a 'regional university neglect theory,' as the Incheon Free Economic Zone Authority is accused of being generous to Yonsei University, which plans to build Severance Hospital in Songdo, while being stingy with Inha University.

The issue began when the Incheon Free Economic Zone Authority changed the knowledge-based service land in Songdo District 11, which was to be provided to Inha University, into industrial land to create a bio-cluster. Naturally, Inha University is opposing this, as the land that was supposed to be revenue-generating?allowing for officetels, office, and retail facilities?was suddenly converted into land for factories and the like.

In July 2013, Inha University purchased approximately 68,000 pyeong (about 224,793 square meters) of educational and research land in Songdo District 11 for 114.1 billion KRW to establish the 'Science Park Campus,' focusing on research in bio, aviation, automotive, and smart manufacturing fields. At the same time, it contracted with the Incheon Free Economic Zone Authority to receive about 16,000 pyeong (approximately 52,892 square meters) of knowledge-based service land in the same district. To date, Inha University has paid 95.6 billion KRW for the Songdo campus land, with the remaining 18.5 billion KRW scheduled for full payment by October next year, demonstrating Inha University's firm commitment to developing the Songdo campus.

However, the campus development alone requires 450 billion KRW beyond the land payment, making securing funding crucial for project advancement. Amid this, the change in the revenue-generating land has caused significant disruption to plans to finance the Songdo campus through officetel sales and other means.

The Incheon Free Economic Zone Authority has its own defense. It claims that after the 2013 business agreement, the development plan for the entire Songdo District 11 changed, making the land use change unavoidable. It also asserts that it repeatedly requested Inha University to purchase the knowledge-based service land but that this was not done within the deadline (April 2017).

From Inha University's perspective, it appears hesitant to purchase the initially promised revenue-generating land due to concerns that profitability would be low given changes in surrounding conditions. Since the appointment of current President Cho Myung-woo in September 2018, Inha University has repeatedly sought support from the Incheon Free Economic Zone Authority for the Songdo campus development and engaged in several negotiation rounds, but ultimately failed to effectively respond to the land use change, revealing limitations in negotiation power.

Inha University needs land that can generate more revenue than initially promised, but the Incheon Free Economic Zone Authority is reluctant. It argues there is no justification to meet Inha University's demands, wary of potential accusations of 'special favors' to a particular university. Meanwhile, civic groups have criticized the authority, saying, "Yonsei University can get it, but why not Inha University?"

The Incheon Free Economic Zone Authority conditionally approved the second-phase project site in 2018 for Yonsei University, which had not fulfilled its promise to build Severance Hospital in the first-phase agreement for the Songdo campus in 2006. The project land was also provided at cost (3.89 million KRW per 3.3 square meters).

The Incheon Peace and Welfare Solidarity stated, "While regional universities are treated coldly, Yonsei University is receiving all kinds of special favors," and urged, "Since the establishment of Inha University's Songdo Science Park Campus is essential for building Incheon's Songdo bio-cluster, Mayor Park Nam-chun must make a decisive decision."

Some argue that comparing the current situation of Inha University with 2006, when Songdo was still undeveloped and incentives were necessary to attract prestigious universities even if it meant granting special favors, is inappropriate. A local resident group in Songdo (All That Songdo) expressed opposition to supporting Inha University, stating, "If economic favors are to be given to Inha University, it should be accompanied by the relocation of headquarters of affiliated companies such as Korean Air, Jin Air, and Hanjin Shipping to Incheon or Inha University's contribution to the local community."

However, civic groups are forming a citizens' committee to support Inha University's Songdo campus development, and the city council is promoting the formation of a joint consultative body to provide revenue-generating land to Inha University. This gives Inha University grounds to demand full support from Incheon City and the Free Economic Zone Authority.

Nevertheless, Inha University must continue to persuade the local community why the establishment of the Songdo Science Park Campus is necessary for the development of the Songdo Free Economic Zone and, more broadly, Incheon City. Simply appealing for support as a regional university will only lead to repeated controversies over special favors, as seen in the Yonsei University case.