If the Formula One (F1) Grand Prix is held for five years, the total benefit is estimated at 1.1697 trillion won. The benefit-to-total expense ratio is 1.45 against total expenses (802.8 billion won), meeting economic feasibility.
A preliminary feasibility study on Incheon's bid to host the F1 Grand Prix found the project economically viable. Based on this, Incheon plans to host the F1, regarded as one of the world's three major sports events, to elevate its global city brand and grow its tourism and service industries.
However, there are concerns that this may be a "rosy outlook," given the precedent of the Yeongam race in South Jeolla Province leaving a large deficit.
◇ One of the world's three major sports events, F1… Incheon says "economic viability secured"
According to Incheon on the 20th, the city recently completed a preliminary feasibility study for attracting F1. If the race is held over the next five years, the total benefits, including production inducement, tourism spending, and job creation, are analyzed at 1.1697 trillion won, with total expenses at 802.8 billion won. A benefit-to-expense ratio above 1 is generally considered economically viable. Incheon plans to accelerate negotiations for hosting rights and consultations with the central government based on these results.
After expressing its intention to host F1 last year, Incheon formed a dedicated team. Mayor Yoo Jeong-bok is said to have met with Stefano Domenicali, CEO of the F1 Group, to convey the city's intent to host.
Incheon says overseas spectators have excellent access via Incheon International Airport and that tourism infrastructure—centered on Songdo and Yeongjongdo—including luxury hotels, international conference facilities, shopping, casinos, and resorts, is sufficient.
F1 is the world's most prestigious auto racing championship organized by the Fédération Internationale de l'Automobile (FIA). Over a season, roughly 20 Grands Prix are held around the world, and each race is considered a flagship sports tourism product that draws tens of thousands of fans who travel to attend.
Singapore, Monaco, Las Vegas in the United States, and Middle Eastern countries are seeking to attract tourists and boost city branding through F1.
◇ Yeongam's 400 billion won deficit precedent… a downtown Songdo street circuit as the gambit
The issue is the massive expense. Hosting fees, track construction, operating costs, and expenses for traffic control and safety management all require substantial budgets.
In reality, South Jeolla Province held the F1 Korean Grand Prix in Yeongam from 2010 to 2013, but sluggish spectator turnout, a lack of nearby lodging infrastructure, and the burden of high hosting fees combined to produce an estimated deficit of around 400 billion won over four years. After the event ended, utilization of the permanent circuit also fell short of expectations.
Incheon emphasizes that conditions differ from Yeongam. The city is reviewing ways to reduce expenses by not building a separate permanent circuit and instead adopting a street circuit using downtown roads around Songdo International City, similar to Monaco and Singapore. It also notes strong demand in the greater Seoul area and easier inflows of overseas tourists.
Another factor cited is the recent rise in domestic F1 popularity, driven by over-the-top content such as Netflix and Coupang Play.
However, whether the plan actually proceeds will likely depend on the Incheon mayoral election in June. While Mayor Yoo Jeong-bok is pushing it forward, Rep. Park Chan-dae, the Democratic Party of Korea's Incheon mayoral candidate, criticized it, saying, "It is hard to expect results and there are concerns about showcase-style administration." Attention is on whether Incheon's F1 bid can overcome Yeongam's failure and become a new box-office model.