Incheon Free Economic Zone Authority Secures 104.3 Billion KRW Compensation for Cheongna Land Acquired Free of Charge by LH

Compensation Target Site Location Map [Provided by Incheon Free Economic Zone Authority]

[Asia Economy Reporter Park Hyesook] The Incheon Free Economic Zone Authority has recovered land compensation funds amounting to 104.3 billion KRW, which arose due to administrative procedural errors by LH (Korea Land and Housing Corporation).

The Incheon Free Economic Zone Authority confirmed procedural errors in LH's plan to acquire the land free of charge and, after negotiations, secured a promise for compensation in the first half of this year, it announced on the 2nd.

The land in question consists of 15 parcels totaling 201,475㎡ in Cheongra-dong, Seo-gu, near Robot Land within Cheongna International City, with an appraised value reaching 104.3 billion KRW as of 2020.

According to relevant regulations such as the National Land Planning and Utilization Act and the Public Property Act, when a project implementer incorporates public property within a project district, they must consult with the property manager regarding land compensation or free acquisition. In particular, if the public property is designated as general property, land compensation is the principle.

However, LH, as the project implementer, inaccurately prepared the land tax item statement when obtaining approval for the Cheongna district development plan and implementation plan in 2011, and notably acquired general property owned by the Incheon Free Economic Zone Authority free of charge without any consultation on land compensation.

Accordingly, after reviewing the National Land Planning and Utilization Act, Supreme Court precedents, and advice from legal counsel, the Incheon Free Economic Zone Authority confirmed that whether land compensation or free acquisition applies is determined by actual usage. Since the land acquired free of charge and uncompensated by LH is actually used as vacant land ("Nadaeji"), it must legally be acquired through paid compensation.

The Incheon Free Economic Zone Authority plans to use the land compensation funds to revitalize the free economic zone, including the "3rd Yeonryukgyo Meta Bridge Project," which aims to transform the 3rd Yeonryukgyo (Cheongna?Yeongjong sea bridge) into a global tourist attraction similar to London's Tower Bridge or Sydney Harbour Bridge.

An official from the Incheon Free Economic Zone Authority stated, "We will actively correct administrative procedural violations and errors going forward and ensure that similar cases do not occur."