Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Gov’t plan to integrate state-run airports with Incheon hits snag
An aerial view of Incheon International Airport / Courtesy of Incheon International Airport Corp.
By Lee Min-hyung
Korea Airports Corp. urges Incheon to support balanced growth for regional airports
The government’s plan to integrate Incheon International Airport Corp. (IIAC) with two unprofitable state-run airport operators is stuck in limbo amid mounting resistance from labor unions and civic groups.
The proposed integration is part of a public sector restructuring initiative ordered by President Lee Jae Myung, but conflicts between stakeholders emerged quickly after the plan was unveiled.
Under the initiative, the government is pursuing a project to integrate IIAC with Korea Airports Corp. (KAC) and Gadeokdo New Airport Construction Authority.
Labor unions at IIAC have expressed strong opposition to the integration proposal, citing concerns that the move could force them to absorb losses and financial burdens from the two public firms.
IIAC generated an operating profit of 480.5 billion won ($318 million) last year, while KAC incurred an operating loss of 22.3 billion won during the same period. The Gadeokdo airport authority also requires continued investment until the airport’s planned opening slated for the latter half of 2035.
A coalition of seven labor unions from Incheon International Airport issued a joint statement, demanding the government immediately scrap the proposed plan.
“The chronic deficits of regional airports are the result of continued policy failures, including politically driven construction projects that ignored demand and feasibility,” the group said. “The integration is an apparent attempt to shift the financial burden of these failures onto Incheon.”
Some critics also argue that the plan could jeopardize Incheon International Airport’s ongoing expansion project — including the construction of a fifth runway and a third passenger terminal — valued at around 5 trillion won.
A rendering of Gadeok airport in Busan / Courtesy of Busan Metropolitan City
In contrast, KAC, which has struggled with persistent losses, appears to support the government’s proposal. Its labor union argued that it is unfair for profits generated from Incheon airport to be reinvested solely in the area, as the public across the nation uses the airport for most international flights.
A KAC labor union called for greater policy equity aimed at balanced growth of the nation’s airports. KAC is in charge of operating 14 airports, including Gimpo International Airport and Jeju International Airport.
“Incheon International Airport has achieved the fastest growth among local airports, driven by the government’s policy support to turn it into the representative air transport hub here,” the union said.
“However, other airports have suffered structural problems, as the government placed most of its policy support, such as facility investment, on Incheon International Airport.”
The new airport on Gadeok Island will be constructed in the nation’s southeastern port city of Busan. The government plans to inject some 10.7 trillion won into the project, which is scheduled to open in the second half of 2035.
Given the infancy of the project, it remains unclear whether Gadeokdo New Airport Construction Authority will maintain its role following the completion of the project.
“Nothing specific has been confirmed, but there stands a possibility that the state-run authority changes its name and role and handles the overall operation of the airport after its construction,” said an official from the Ministry of Land, Infrastructure and Transport.