Calls grow to integrate operators of Incheon and unprofitable regional airports

An aerial view of Incheon International Airport / Courtesy of Incheon International Airport Corp.

The government’s proposed integration of major airport operators is gaining support from industry experts as a necessary step toward building a more balanced and sustainable national aviation network.

The proposal — a merger of Incheon International Airport Corp. (IIAC) with Korea Airports Corp. (KAC) and Gadeokdo New Airport Construction Authority — is part of a broad restructuring initiative for public institutions ordered by President Lee Jae Myung. The move comes as IIAC remains the only profitable airport operator, while KAC, which runs 14 airports nationwide, including Gimpo and Jeju, is facing structural deficits.

Additionally, the agenda is emerging as a politically hot-button issue ahead of the June 3 local elections.

Advocates for the integration argue that the current separate airport management system has deepened structural imbalances among local airports.

Under the current structure, IIAC has continued to expand as a highly profitable global hub airport, while most regional airports have struggled with chronic losses amid declining passenger demand and weakening competitiveness.

Unlike IIAC, which operates the country’s main international gateway, KAC oversees 14 domestic airports under far less favorable business conditions, making it difficult to escape the persistent deficits.

Experts argue that Korea’s airports should be operated as an integrated national infrastructure system, rather than as isolated entities competing for profitability.

Hwang Yong-sik, a professor of business administration at Sejong University, stressed that integration is necessary to achieve balanced national and regional development.

“If airport operators were private companies, it would be difficult to force a merger between a profitable company and a loss-making one,” Hwang said. “However, both IIAC and KAC are public enterprises, so they must serve broader public interests.”

Passengers jets are parked at Gimpo International Airport in Seoul in this undated photo. Courtesy of Korea Airports Corp.

He added that IIAC has already fulfilled its original mission by establishing itself as one of Asia’s leading hub airports.

“Now is the time to pursue balanced development of domestic airports through integration,” Hwang said. “Airport operations have strong characteristics of social overhead capital. IIAC cannot remain solely focused on maximizing its own profits indefinitely.”

IIAC posted an operating profit of 480.5 billion won ($322 million) last year, while KAC recorded an operating loss of 22.3 billion won. The Gadeokdo New Airport Construction Authority, meanwhile, is expected to require sustained investment until the planned completion of the new airport in 2035, and it will not generate any meaningful revenues until then.

Despite opposition framing the proposal as a transfer of IIAC’s profits to loss-making regional airports, industry officials said the issue should be viewed from a broader national perspective.

“The key point is not simply using IIAC’s earnings to offset losses elsewhere,” an industry official said.

“The discussion should focus more on creating a unified nationwide airport network that can improve efficiency and generate greater long-term value for the entire aviation sector."

Supporters of the integration plan also argue that a unified airport management structure could help address structural inefficiencies, narrow regional disparities and stimulate local economies by stabilizing jobs and improving connectivity.

Song Young-gil, a candidate from the ruling Democratic Party of Korea for a by-election in an Incheon electoral district, speaks at his campaign office in Incheon, Sunday. Yonhap

Political tensions surrounding the issue are also intensifying ahead of the local elections, which will include two by-elections in Incheon.

Song Young-gil, the ruling Democratic Party of Korea's (DPK) candidate for an Incheon electoral district in the by-election, pledged to “protect” IIAC amid growing opposition to the integration plan among local residents there.

The main opposition People Power Party (PPP) has also launched strong criticism against the government's plan, calling the proposal a symbol of unilateral decision-making and regional discrimination.

Yoo Jeong-bok of the People Power Party, seeking a third term as Incheon mayor, speaks at his election office in Incheon, Tuesday. Joint Press Corps-Yonhap

Incheon Mayor Yoo Jeong-bok, who is seeking his third term, criticized the ruling party for displaying an inconsistent stance on the issue of airport integration.

“The ruling party previously claimed that concerns over integrating the airport operators were groundless, but now, with the June 3 local elections approaching, it has suddenly begun voicing opposition,” Yoo said. “That is neither sincere nor consistent.”

The government is in the early stage of reviewing the airport integration plan, exploring various scenarios for a possible integration of the three state-run airport operators. In March, the Ministry of Finance and Economy said “various aspects are being reviewed” regarding the integration of the three organizations.