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.”
Source: Korea Times News
