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Hyundai E&C drops out of Gadeokdo New Airport land reclamation project

Published: 30 May. 2025, 16:42 Updated: 01 Jun. 2025, 17:41

A render of the layout of Gadeokdo New Airport [BUSAN METROPOLITAN GOVERNMENT]

Hyundai E&C has decided not to participate in the land reclamation project for the Gadeokdo New Airport, citing the government’s demands to shorten the construction period.

With Hyundai E&C pulling out of the project, further delays in the airport's construction have become unavoidable.

"Despite efforts to ensure safety and quality, it has become impossible to secure a timeline that guarantees safety," Hyundai E&C said Friday. "We have therefore decided not to participate in the land reclamation project for the Gadeokdo New Airport.”

Previously, the Ministry of Land, Infrastructure and Transport decided to terminate the private contract with the Hyundai E&C consortium responsible for the land reclamation work.

Hyundai E&C had insisted on an additional 24 months beyond the originally proposed schedule, but the request was denied, halting the contract process. Following this, the company faced heavy criticism from local governments and civic groups.

"To minimize project delays and support the success of this national project, we will relinquish our rights related to the basic design and actively cooperate in selecting a new contractor," said the company.

However, Hyundai E&C also said that "this is not the position of the consortium to which we belong but rather our independent decision.” The company said that “by relinquishing all rights related to the consortium, we aim to allow the consortium to continue participating in the project and thereby minimize delays."

"It is unacceptable to accept reckless demands and conditions to shorten the construction timeline that compromise airport safety due to local and political interests,” said Hyundai E&C. “We also reject the unfair accusation that we are delaying a national project or causing additional taxpayer spending for personal gain."

A render of the layout of Gadeokdo New Airport [BUSAN METROPOLITAN GOVERNMENT]

"Even though our proposal was aimed at correcting fundamental flaws in the master plan that fail to guarantee public safety, we are now facing criticism for allegedly using this as a trick to demand additional costs, receiving undue privileges and avoiding social responsibility," said Hyundai E&C. "There are even protests in front of our headquarters with claims that we are deliberately delaying the airport opening for personal gain.”

"The project involves cutting an amount of earth equivalent to nearly three times the size of Mount Namsan in Seoul and reclaiming an area about 2.3 times the size of Yeouido, making it Korea’s most difficult construction project,” said the company. “We believe securing a reasonable construction period is a nonnegotiable prerequisite to ensure safety and quality.

"This was a responsible decision made with the safety of future airport users and the success of this national project as our top priorities.

"During the basic design process, we mobilized around 250 experts and invested 60 billion won ($43.5 million), conducting an in-depth six-month technical review,” said the company.

“We closely analyzed similar cases like Kansai International Airport in Japan, Hong Kong’s Chek Lap Kok International Airport and the recent accident at Muan Airport to derive the minimum reasonable construction period needed to ensure safety and quality."

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HAN YOUNG-HYE [[email protected]]