The merger of Incheon International Airport Corporation and Korea Airports Corporation has been postponed. The government plans to prioritize revitalization measures for regional airports before reconsidering the merger.
On September 3, the government announced its "Public Institution Function Reform Plan," stating that it will develop strategies to promote the growth of both Incheon and regional airports before reassessing the merger's feasibility.
The government recognizes that while the national strategy to establish Incheon Airport as a hub has shown clear results, it has also exacerbated deficits and imbalances at regional airports. This has highlighted the need for a strategy that promotes the simultaneous growth of hub and regional airports.
Currently, there is a significant financial disparity between the two corporations under the Ministry of Land, Infrastructure and Transport. As of last year, Korea Airports Corporation, which operates regional airports, reported that only Cheongju Airport recently joined the ranks of profitable airports alongside Gimpo, Jeju, and Gimhae airports. During this period, the corporation faced an operating loss of 22.3 billion won and a net loss of 52.2 billion won.
In contrast, Incheon International Airport Corporation has maintained profitability, except during the COVID-19 pandemic, with an operating profit of 866.7 billion won and a net profit of 694.3 billion won during the same period.
In response, the government plans to establish an Airport Strategy Council, which will include representatives from the Ministry of Land, Infrastructure and Transport, Incheon International Airport Corporation, Korea Airports Corporation, and the Gadeokdo Construction Corporation. This council will develop and implement revitalization measures for regional airports.
Strategies will include specialized plans for each regional airport, fostering mutual growth, and improving financial structures. Examples include expanding direct international flights to regional airports and developing specialized airports linked to local industries, such as Muan for semiconductors.
The government will also reform the aviation security system. Security operations at both airport corporations will be separated and integrated into a specialized aviation security agency to enhance security functions. The security departments of Incheon International Airport Corporation and Korea Airports Corporation, along with their security subsidiaries, will be consolidated into a single specialized agency to strengthen aviation security capabilities.
* This article has been translated by AI.
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