Relocation projects for military units in Incheon — including the 3rd Supply Unit in Bupyeong District — have stalled as low commercial viability has kept private investors away. City officials say they will continue consultations with the Defense Ministry, but a clear breakthrough is not yet in sight.
On the morning of March 24, Lee Won-ju, director of the city’s Urban Planning Bureau, told reporters at City Hall that the city is conducting studies and consulting with the Defense Ministry on the relocations. He said detailed plans remain undecided because the projects have not yet demonstrated economic viability.
Although the moves for the 3rd Supply Unit and the 507th Brigade are in the implementation stage on paper, limited private-sector interest has slowed progress.
Under a “donation in exchange for transfer” model, Incheon Urban Corporation (iH) and private developers would jointly build replacement military facilities, donate those facilities to the military, and then take possession of the vacated land for development.
That approach forces developers to finance site preparation and construction of military facilities up front. Because they must recover those costs through later development profits, the business case is thin.
A downturn in construction, rising interest rates and a cooling housing market have further squeezed potential returns, making private participation difficult.
Lee said the city will refine plans to improve commercial viability and continue talks with the Defense Ministry. “We will push to produce results this year,” he said.
Plans to relocate the 505th Aviation Battalion in Bupyeong and the 503rd Ammunition Company in Gyeyang remain at the conceptual stage. The city is conducting an operational review with the Defense Ministry on the 503rd and plans to resume related studies after consultation.
At the briefing, officials also said they are considering expanding the supply under Incheon’s residential welfare policy known as “Cheonwon Housing” (literally “1,000 KRW (about $0.75) housing”).
In the recent preliminary applicant round for Cheonwon Housing, 3,419 households applied for 700 available units. Of those, 1,735 households applied for 200 Newlywed & Newborn II units, while 1,684 applied for 500 Jeonse-style “Dundeun” rental units.
Son Myung-jin, head of the city’s housing policy division, said the Newlywed & Newborn II type is popular because it repurposes existing apartments. The Dundeun rental type, he added, has broader eligibility criteria and therefore reaches a wider pool of beneficiaries.
He said that given strong demand for the Newlywed & Newborn II units, the city will consult with the Ministry of Land, Infrastructure and Transport to consider increasing supply.
/Reporter Yejin Park yejin0613@incheonilbo.com
