Local governments across South Korea with airports are competing to attract aircraft hangars.
According to the Ministry of Land, Infrastructure and Transport's Aircraft Technology Information System, there are currently 457 registered civilian aircraft classified as air transport across 15 airports nationwide.
Of these, 90.6%, or 414 aircraft, are concentrated at five international airports: Jeju (124), Incheon (91), Gimpo (87), Cheongju (66), and Gimhae (46).
An aircraft hangar refers to the location where aircraft are stored or undergo maintenance after flights. Each airline pays property tax to the local government where the hangar is registered.
Local governments can increase their tax revenue and secure stable income by attracting high-value aircraft to their airport hangars. For instance, Cheongju City reported that the property tax from the 66 aircraft registered at Cheongju Airport this year amounted to over 5.7 billion won.
As a result, municipalities with airports are implementing incentive policies that return a portion of the property tax as maintenance fees, leading to fierce competition for attracting aircraft. Local governments with relatively low registration rates for hangars are offering attractive conditions.
Since last year, Busan's Gangseo District has been supporting airlines with 50% of their property tax payments as maintenance fees for aircraft registered at Gimhae Airport. Cheongju City offers 20% of the property tax for existing aircraft registered at Cheongju Airport and 25% for newly registered aircraft. Both municipalities report that their incentive policies have had a positive impact on attracting aircraft.
In fact, the number of civilian aircraft registered at Gimhae Airport has increased from 26 in 2024 to 46 currently, while Cheongju Airport has grown from 52 to 66 during the same period. A Gangseo District official stated, "Tax benefits have positively influenced aircraft attraction," adding that they plan to maintain the current policies unless significant changes occur.
Incheon City and Yeongjong District are also facing challenges in attracting new aircraft to Incheon Airport amid intensifying competition. In response, Incheon City is offering a 30% reduction in acquisition tax for new aircraft registered at the airport, while Yeongjong District is providing 20% of the property tax as maintenance fees.
An industry insider predicts that as Korean Air has confirmed the introduction of over 100 new aircraft and the number of aircraft continues to rise each year, competition among local governments will become even more intense.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.