Large Projects Gain Momentum Including Songdo International Library in Yeonsu-gu, Incheon... Additional City and Provincial Subsidies Secured

Incheon Yeonsu-gu Office

[Asia Economy Reporter Park Hyesook] Yeonsu-gu, Incheon, has gained momentum in advancing projects with the additional securing of 16.8 billion KRW in city subsidies for the construction of Songdo International City Library and the Youth Training Center.

According to the district on the 19th, the Incheon City Council passed the budget for next year, reflecting the additional construction costs needed for the Songdo International City Library and Youth Training Center projects promoted by Yeonsu-gu, at the 6th plenary session of the 283rd meeting held on the 16th.

Since 2019, Yeonsu-gu has been carrying out large-scale projects totaling approximately 140 billion KRW, including the construction of the Youth Training Center, Songdo International Library, and the Culture and Arts Center, following local financial investment project reviews.

However, during the 7th local government term, due to the cost-sharing ratio set with Incheon City without considering Yeonsu-gu’s future finances, the district found itself in a difficult position, making it urgent to secure additional project funds to maintain these large-scale projects.

These projects were originally planned on the premise of national and city government support, but with the government’s shift to local transfer projects, direct national funding became impossible, leaving Yeonsu-gu responsible for 70% of the total project costs.

Incheon City also maintained its position of a 30% city subsidy share due to financial management ordinances and fiscal conditions, making it difficult to secure additional city subsidies for large construction projects within the region.

Since the 8th local government term, Yeonsu-gu has been conducting behind-the-scenes negotiations with Incheon City to realistically revise the current 30% 'Public Building Construction Support' city subsidy rate by subdividing it and increasing the support rate from 50% up to a maximum of 70%.

As a result, persuading Incheon City led to expanding the city subsidy burden ratio from 30% to 70% for Songdo International City Library and from 30% to 50% for the Youth Training Center, securing an additional total of 16.8 billion KRW in city subsidies.

Accordingly, Yeonsu-gu will receive subsidies of 20 billion KRW for Songdo International City Library and 14.4 billion KRW for the Youth Training Center from Incheon City, along with realistic adjustments to the district’s own contribution.

The Yeonsu-gu Youth Training Center project involves investing 33 billion KRW by 2025 at 313-12 Songdo-dong to build a youth training facility equipped with autonomous activity rooms, indoor assembly halls, sports activity areas, and a swimming pool, balancing facilities between the original and old downtown areas.

The Songdo International City Library project, responding to increasing resident demands for a library, plans to complete an international-scale library with one basement floor and three above-ground floors by 2025 at 115-2 Songdo-dong, with a budget of 47.7 billion KRW.

Meanwhile, another large-scale construction project, the Yeonsu Culture and Arts Center, has seen construction costs exceed 50 billion KRW due to additional waste disposal expenses, and is currently undergoing a feasibility study process to proceed with the project normally.

Lee Jae-ho, Mayor of Yeonsu-gu, stated, "With the additional securing of city subsidies, we expect not only the normal progress of the Songdo International City Library and Youth Training Center projects but also a revitalization of the local construction economy."