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Gadeok Airport project regains altitude under new administration

Published: 05 Jun. 2025, 16:40 Updated: 05 Jun. 2025, 17:16

A view of Daehang Village on Gadeok Island in Gangseo District, Busan, where the new Gadeokdo Airport is slated to be built [JOONGANG ILBO]

The project to build an airport on Gadeok Island in Busan, previously stalled after Hyundai Engineering & Construction (E&C) withdrew from the site development contract, is regaining traction as the Lee Jae-myung administration accelerates efforts to move the government-backed project forward.

Compensation process begins

The Busan Metropolitan Government on Thursday said it began negotiations on compensation for land and property slated for inclusion in the airport site. Authorities aim to complete the transfer of ownership to the state by the end of this year.

“The total number of items for compensation, including land and structures, is over 1,000,” said Kim Byeong-kwon, director of the city’s airport planning division.

“We aim to finish the first round of negotiations by August. Even if secondary reviews are required for owners who refuse to agree, we expect to finalize all acquisitions by the end of the year.”

The project covers 668 parcels totaling 379,074 square meters (93.7 acres), and involves relocating 378 households.

Members of a civic group opposed to the Gadeok Island airport project hold a press conference in front of Busan City Hall on Nov. 5, 2024, urging the government to cancel construction and denouncing the no-bid land development contract. [JOONGANG ILBO]

Following Hyundai E&C’s exit in April — after the Ministry of Land, Infrastructure and Transport rejected its request for a two-year extension — the government plans to relaunch the tender process in July. If successful, construction could begin, at the latest, in early 2026.

The consortium previously included Daewoo Engineering & Construction with an 18 percent stake and Posco E&C with 13.5 percent. While Hyundai E&C has bowed out, the city remains confident.

“Even without Hyundai E&C, Daewoo and Posco E&C are still onboard,” said a Busan city official. “If the Ministry of Land, Infrastructure and Transport completes the rebidding process in July and selects a new contractor by the end of this year, we could break ground early next year.”

The Land Ministry is currently exploring ways to encourage construction firms to participate in the new tender. The ministry has hosted multiple industry roundtables to gather feedback and intends to shape the new bid conditions accordingly.

The Ministry of Land, Infrastructure and Transport announces plans to open the new Gadeok Island airport during an interim briefing on the master plan held at the government complex in Sejong on March 14, 2023. [YONHAP]

Revised timeline

Hyundai’s withdrawal makes the previously stated early-2029 opening — announced under the Yoon Suk Yeol administration — unrealistic. However, full cancellation of the Gadeok Island airport project remains unlikely. Initially proposed by former President Roh Moo-hyun in 2002 and designated a state-financed project through a special law passed during the Moon Jae-in presidency in 2021, the project continues to enjoy bipartisan backing.

President Lee has made the project a key campaign promise, pledging to “take responsibility for pushing forward the new Gadeok-do Airport.”

Choi In-ho, head of the Busan chapter of the Democratic Party’s (DP) city administration review committee, confirmed that the budget for 2025 includes 950 billion won ($700 million) for construction and an additional 300 billion won for compensation — totaling 1.2 trillion won.

“We will push to break ground by the end of this year or early next year,” he said.

The city and the DP insist on an 84-month (7-year) construction period — one year longer than the original 72-month proposal by the Land Ministry.

“It’s a one-year extension from the 72-month plan first proposed by the Land Ministry last year, and it’s not unreasonable," said Choi. "We will proceed with the project based on an 84-month construction period, with the goal of completing it by 2032."

A still from a promotional video for the Gadeok Island New Airport is screened during a vision and strategy declaration ceremony at Busan City Hall on Jan. 11, 2024. [BUSAN METROPOLITAN GOVERNMENT]

Hyundai had argued that this time frame compromised safety and quality, a claim Busan officials rejected.

“This schedule was part of the government’s original bidding conditions and is based on thorough technical reviews,” said Kim Kwang-hoe, Busan’s deputy mayor for the city's Future Innovation division.

“With a newly selected contractor and a proactive approach, we believe we can still target an opening in 2029 and full completion by 2032.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY LEE EUN-JI [[email protected]]