By Lee Hyo-sik
The Lee Myung-bak administration’s plan to sell a 49-percent stake in Incheon International Airport to foreign and domestic investors is drawing protest from opposition parties, civic groups and the airport union.
Government officials say that it is necessary to raise funds to make Korea’s main gateway to the world more competitive and efficient, adding that the airport should learn advanced operation and management know-how from the world’s top-class airports to become a true global aviation hub.
They stress Incheon airport still has a lot of room for improvement even though it was named as the world’s best airport in service quality for the fifth consecutive year.
The Democratic Party and other opposition parties oppose the privatization of Incheon International Airport Corp., which owns a 100 percent stake in the airport and is headed by CEO Lee Chae-wook, saying that there is no need to sell shares of a blue-chip public firm.
They say the airport has and will continue to perform well even under the 100-percent state ownership, vowing to block the revision of the law governing the operation and management of Incheon and other airports here.
The labor union of Incheon International Airport Corp. and civic groups are raising doubts about the true motive behind the government scheme. They argue the Lee administration may seek to provide favors to well-connected private businesses, particularly foreign investors, by selling stakes in Incheon airport at relatively cheaper prices.
As part of a government-wide effort to ``advance’’ hundreds of state-run enterprises, the Ministry of Land, Transport and Maritime Affairs said in July 2008 that it will dispose of a 49-percent stake in Incheon International Airport.
First, it plans to list a 15-percent stake on the local bourse by the end of this year, with the remaining 34 percent being sold to multiple investors in 2011. A single entity will not be allowed to acquire more than 15 percent of the shares, while foreign investors cannot secure more than a combined 30 percent.
In December last year, the government formed a sales consortium led by Samsung Securities. The securities industry watchers expect the 49-percent stake sale to generate around one trillion won.
``Even though Incheon airport has emerged as one of the leading airports in the world and won the top spot in the service quality assessment from 2005 through 2009, it still needs to improve the operational efficiency and other areas of management in order to become a hub in Northeast Asia,’’ said Kim Sang-do, director of the ministry’s aviation policy division.
``Incheon airport has so far done a good job, attracting a large numbers of foreign air travelers from nearby countries. But its emergence as a leading airport is also attributed to the lackluster performance of its rivals in China and Japan. But Narita, Beijing, Shanghai and other large airports in the region have recently taken a range of steps to catch up with Incheon airport,’’ Kim said.
He then said to remain at the top of the league, the airport should learn to further advance its management system from its counterparts in developed countries, as well as boost cooperation with them.