Incheon City announced on the 25th that it has signed a national and public property exchange contract with the Incheon Regional Maritime Affairs and Fisheries Office of the Ministry of Oceans and Fisheries regarding the collective relocation project of 1,275 households in Hangun and Yeonan Apartments in Songdo, which has been stalled for 18 years.
This contract involves exchanging 12 out of 20 parcels of the North Port hinterland owned by Incheon City for 4 out of 6 relocation parcels owned by the Ministry of Oceans and Fisheries, following the amendment of the mediation document by the Anti-Corruption and Civil Rights Commission.
The exchange difference of about 2.5 billion KRW, to be paid by the residents (representative: Hangun-Yeonan Apartment Union Relocation Association), has been deposited to the Incheon Maritime Affairs and Fisheries Office, and the ownership transfer registration for the 4 relocation parcels is expected to proceed soon.
Hangun and Yeonan Apartments, which have suffered environmental damage such as noise and dust from Incheon Port for a long time, have been subject to collective relocation efforts since 2006. Hangun Apartment in Sinheung-dong, Jung-gu, is a five-story apartment complex built in 1982 with 510 households (including 30 commercial units). Yeonan Apartment, located across from Hangun Apartment across Seohae-daero, was built the following year in 1983 and consists of a total of 765 households (including 75 commercial units).
There had been prolonged difficulties due to significant differences in positions between the Incheon Maritime Affairs and Fisheries Office under the Ministry of Oceans and Fisheries and the apartment residents regarding the property exchange method. However, Incheon City proposed a phased exchange relocation plan utilizing public property, which led to a breakthrough in the project’s progress through mediation by the Anti-Corruption and Civil Rights Commission in December 2021.
The mediation at that time stipulated that, as the first phase, the city-owned North Port hinterland (49,000㎡) and the national land of Songdo International City Block 9, Aam Logistics Complex 2 (55,000㎡) would be exchanged in bulk by March 31, 2023. In the second phase, after 80% of all residents agreed to relocate, 4 out of 6 relocation parcels would be exchanged first through a trust company.
However, the relocation association recently faced difficulties in securing the exchange difference due to the downturn in the real estate market and applied for a change in the mediation document to the Anti-Corruption and Civil Rights Commission, reaching a final agreement last month. The final mediation extended the land exchange deadline from March last year to December this year and changed the method from exchanging all 6 parcels at once to exchanging 4 parcels first and the remaining parcels sequentially.
An official from Incheon City stated, "With the exchange of national and public property, the first step of relocation, completed after consultations with related agencies, we will assist residents to relocate smoothly."
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