Hyungji Group faces controversy over Songdo headquarters sale

Hyungji Group is facing controversy in Songdo International City following its decision to sell its headquarters building only four years after moving in. The fashion group acquired the land at production cost—approximately 7.29 billion won—but the current market value is estimated to be nearly ten times that amount.

Critics and local officials are pointing to administrative failures by the Incheon Free Economic Zone Authority (IFEZ). The authority reportedly failed to include clauses in the original agreement that would restrict the sale or holding period of the land and buildings. Furthermore, despite a contract clause allowing for the reclamation of land if construction did not begin by April 2016, the IFEZ granted two extensions to Hyungji, allowing construction to eventually proceed in 2018.

The lack of oversight has led to accusations that the authority facilitated a ‘hit-and-run’ profit-taking scenario, undermining the original purpose of providing low-cost land to attract anchor companies and stimulate the local economy through job creation and fashion industry clusters.