A view of the aging neighborhood around the Dong-Incheon Station transit-oriented area in Incheon's old city core. [Provided by reader]
A view of the aging neighborhood around the Dong-Incheon Station transit-oriented area in Incheon's old city core. [Provided by reader]

A new study has found that Incheon needs a separate project management framework tailored to its local conditions if urban mixed-use development is to meaningfully improve residential environments and expand housing supply in the city's old city core.

The Incheon Research Institute, presenting findings from its 2026 policy research project on establishing a mixed-use urban development framework for Incheon, proposed that the city adopt an "Incheon-type project system" capable of comprehensively reviewing regulatory exemptions, public contributions and project viability together.

Urban mixed-use development is a regime introduced to expand housing supply by creating integrated hubs that combine residential, commercial and business functions in aging transit-oriented areas and semi-industrial zones, while leveraging regulatory exemptions to speed up project timelines.

The institutional groundwork has already been laid through the enforcement of the Act on Support for Urban Mixed-Use Development and the enactment of the Incheon Metropolitan City Ordinance on Support for Urban Mixed-Use Development.

However, the institute said that without carefully linking deregulation-driven project viability to the level of required public contributions, problems could arise during implementation — including delayed decision-making and inconsistent application standards across different areas.

The institute also said that for projects proposed by private developers, there is a need to guard against regulatory exemptions being used solely as a tool to maximize development profits.

The institute assessed that urban mixed-use development holds advantages over conventional redevelopment projects, noting that it can draw on the creativity and expertise of private specialists and link floor-area-ratio incentives with the designation of urban innovation zones.

However, it said mechanisms are needed to manage both public benefit and project viability, ensuring that development gains from regulatory exemptions are appropriately returned to the community.

The difficulty of applying a uniform public contribution standard across Incheon was also identified as a key challenge.

Because rezoning can impose a significant public contribution burden on developers, the institute said contribution levels should be applied on a differentiated basis, taking into account the project's location and type, the existing zoning designation, and whether a mix of residential, commercial and business functions is secured.

To that end, the institute proposed four concrete measures: establishing operational standards for regulatory exemptions and public contributions, building a pre-review system and checklist, operating a pre-review steering committee, and forming a dedicated support body for mixed-use development projects.

The institute also called for a differentiated approach based on project type.

It said growth-hub projects should be led by the public sector as pilot initiatives to develop replicable project models, while residential-focused transit-oriented development should maximize private-sector autonomy and creativity. Semi-industrial zones, by contrast, require stronger public oversight and coordination to prevent the privatization of development gains and the erosion of industrial functions.

The institute said that if projects proceed simply by adding more residential units, the existing industrial base could be undermined, and that mixed-use development in such zones must therefore preserve industrial functions.

Procedural improvements were also proposed to prevent administrative resources from being drained by indiscriminate private proposals and to head off allegations of preferential treatment.

The institute said a two-track pre-review system should be established in which county and district offices first verify basic administrative requirements at the proposal stage, after which the city of Incheon and a specialized support body conduct legal and technical reviews.

This approach, it said, would filter out projects with low viability or unmet requirements at an early stage, improving administrative efficiency while giving private developers a more predictable environment in which to pursue projects.

Shin Hyeong-jun, an associate research fellow at the Incheon Research Institute, said a project management system capable of balancing regulatory exemptions and public contributions must come first if urban mixed-use development is to contribute to the spatial restructuring of Incheon's old city core and the expansion of housing supply.

"There is also a need to identify Incheon-type pilot projects and work with specialized support bodies to strengthen the practical effectiveness of the regime," Shin added.

Meanwhile, attention is turning to whether Incheon, drawing on the institute's proposals, can build a new urban development model that simultaneously advances old-city-core regeneration and housing supply — provided it establishes project management standards and a support framework that reflect the distinct characteristics of each area.


gilbert@heraldcorp.com