The government is reportedly reviewing a plan to integrate Incheon International Airport Corporation (IIAC), Korea Airports Corporation (KAC), and the Gadeokdo New Airport Construction Authority as of the 15th.
According to ChosunBiz reporting compiled that day, the Ministry of Economy and Finance recently began a process to gather feedback from related ministries on a public institution restructuring plan that includes an option to merge the three agencies. However, the three-agency merger is said to be one of several ideas and has not been finalized. After hearing from the ministries, the ministry plans to form a public-private joint task force (TF) to continue discussions.
Currently, Incheon International Airport Corporation (IIAC) manages Incheon International Airport. Korea Airports Corporation (KAC) manages the remaining 14 airports nationwide, and the Gadeokdo authority is in charge of building the Gadeokdo New Airport.
This plan to reorganize aviation agencies is being pursued as part of the public institution reforms that President Lee Jae-myung has emphasized since taking office. In December last year, during a Cabinet meeting and a policy briefing, President Lee repeatedly asked the Ministry of Economy and Finance to speed up public institution reforms, including consolidations and new establishments. He also said at the expanded National Tourism Strategy Meeting held on the 25th of last month, "Why doesn't Incheon Airport operate domestic flights?"
The idea of merging Incheon International Airport Corporation (IIAC) and Korea Airports Corporation (KAC) first emerged in political circles. At a National Assembly audit in Oct. last year, lawmakers Yoon Jong-o (The Progressive Party), Hwang Un-ha (Rebuilding Korea Party), and Kwon Young-jin (People Power Party) called for integrating the two corporations. They argued that the operating model of "international flights at Incheon Airport" and "domestic flights at Gimpo plus regional airports," which leaves only Incheon Airport in the black, should be improved by merging the two agencies.
Some analysts say the attempt to fold the Gadeokdo authority into the two major airport entities aims to secure the Gadeokdo new airport construction budget, which totals at least 10 trillion won. They say it may reflect a judgment that the highly profitable Incheon International Airport Corporation (IIAC) should lead the project.