The government has chosen to prolong the development period for the 'Gadeokdo New Airport' site, referred to as the most significant...
The government has chosen to prolong the development period for the 'Gadeokdo New Airport' site, referred to as the most significant civil engineering endeavor in South Korea, from 84 months (7 years) to 106 months (8 years and 10 months). Following Hyundai Engineering & Construction, the favored negotiator for the project, stepping back from the venture in May due to a limited construction timeframe, the Ministry of Land, Infrastructure and Transport has acknowledged the construction firm's perspective. It is quite rare for the government to modify the construction schedule in response to a construction company's arguments.
The Ministry of Land, Infrastructure and Transport stated on the 21st, “To ensure the successful implementation of the new airport project, we determined that maintaining safety throughout the construction and operation of the airport is the top priority,” and added, “The construction timeline has been extended to 106 months, with the project cost rising by 200 billion South Korean won to a total of 10.7 trillion South Korean won, accounting for inflation.” The government also updated its initial plan, which had aimed to open the airport in 2029 and finish it in 2032, now setting the completion and opening date for 2035.
Industry experts claim that the government established an unattainable initial goal, pushed it strongly, and then changed course when the project encountered challenges. The ministry had invested a record 15.3 billion South Korean won in research to establish the original 84-month target, but it ultimately proved ineffective. A representative from the Ministry of Land, Infrastructure and Transport stated, "We set an ambitious schedule to meet the 2029 opening goal, but it appears we did not adequately consider the industry's ability to accept it." Professor Kang Kyung-woo from the Department of Transportation and Logistics at Hanyang University noted, "Simply extending the construction period does not address the core problems of the Gadeokdo New Airport project," and added, "Next year, construction firms are expected to raise concerns about the project costs, which could result in additional delays."
◇Government Reverses Schedule, Construction Firms Pull Out... Complex 'Gadeokdo'
The government, which has prolonged the development period for the Gadeokdo New Airport site from 84 to 106 months, intends to release a new bidding notice as soon as this year and continue the process of choosing a new preferred negotiator. The Ministry of Land, Infrastructure and Transport anticipates that construction will start around the second half of next year. Nevertheless, the transportation and construction sectors highlight that numerous challenges remain before actual construction can take place.
Experts anticipate that although the government has resolved some industry concerns by prolonging the construction timeline, new challenges will emerge next year regarding the project's expenses. Industry professionals often claim that the project is highly complex, yet the allocated budget is inadequate. While Hyundai Engineering & Construction officially stated the extended construction period as the cause for their withdrawal, many believe the lack of sufficient funding was the main reason.
The Ministry of Land, Infrastructure and Transport raised the project's budget by 200 billion South Korean won, bringing the total to 10.7 trillion South Korean won, taking into account inflation from 2023 up to now, while also prolonging the construction timeline by 22 months. Nevertheless, there was no further cost increase for the almost two-year delay.
The ministry argues that according to the National Contract Act, it is not feasible to raise the project expenses merely because of a longer schedule, provided the project plan stays the same. Nevertheless, once a contract is signed with a construction firm, cost modifications can be made if delays happen. This creates a higher chance of conflicts regarding construction costs between the government and contractors in the coming year. Should construction companies request extra expenses for prolonged timelines, the project—already under scrutiny because of its large budget—might encounter even more backlash.
There are ongoing demands for a full reassessment of the Gadeokdo New Airport project because of its considerable risks. The location features a 50-meter thick layer of soft soil, and severe weather conditions, such as typhoons generating waves reaching 12 meters in height, present major obstacles. Incheon International Airport, which was also constructed on land filled from the sea, experienced waves that were one-third as tall and had a soft ground layer that was only one-fourth as thick as that of Gadeokdo.
Safety issues are beginning to arise in the construction sector. A representative from a leading construction firm stated, "If even one safety incident occurs, the Serious Accidents Punishment Act may come into effect, and the challenging nature of the Gadeokdo New Airport project increases these risks." The government is also advancing a proposal to impose a 5% penalty on operational profits if three individuals lose their lives in an industrial accident within a year.
The location of the Gadeokdo New Airport is about 3 kilometers away from the Nakdong River estuary, which serves as an essential habitat and passage for migratory birds. The Citizens’ Action Against Gadeokdo New Airport argues that the likelihood of bird strikes at this airport is 353 times greater than at Muan Airport and eight times higher than at Gimhae Airport. They have submitted an administrative lawsuit to the Seoul Administrative Court seeking to revoke the fundamental plan for the Gadeokdo New Airport.
Some claim that the Gadeokdo New Airport project has encountered delays because of political interests affecting the choice of location and construction schedule. Launched in 2006 at the request of former President Roh Moo-hyun to assess a new airport in the southeastern area, the project was canceled in 2016 in favor of expanding Gimhae Airport. During that time, the Park Geun-hye government hired Paris ê³µAviation Group Engineering, a top-tier airport evaluation organization, which found problems with the economic viability and safety of the Gadeokdo New Airport. However, in 2020, the Moon Jae-in administration abandoned the Gimhae Airport expansion plan before the Busan mayoral election, and the next year, a special law for the Gadeokdo New Airport construction was approved by the National Assembly—despite resistance from the Ministry of Land, Infrastructure and Transport, which presented a "seven-point argument against it." Later, the opening date was suddenly moved forward by more than five years, from June 2035 to December 2029, ahead of Busan's bid for the 2030 World Expo.
Choi Jae-hong, a legal professional from the Law Firm Nature, who initiated the legal action to annul the Gadeokdo New Airport fundamental plan, stated, “Airports need to be constructed in the most suitable locations, but the issue was that 'Gadeokdo' was decided politically without exploring other options.” A representative from the construction sector noted, “The government's extension of the construction timeline is an acknowledgment that the initial plan had flaws,” and added, “Had Hyundai Engineering & Construction not pulled out, more significant challenges would have arisen during the building process.”
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