The Korea Airport Corporation manages all of the airport facilities in Korea except for Incheon International Airport.
The province is seeking management rights for the island’s second airport to bring back profits earned from the airport to the island and minimize environmental damage.
The province is reviewing establishing a so-called Jeju airport corporation.
Todd Thacker reports.
[slug] \65.2B in net profit from operating Jeju International Airport in 2018
The Korea Airports Corporation reported a net profit of 65.2 billion won in 2018 from its operation of Jeju International Airport.
[slug] By 2026, 2nd airport net profit could top \230B
Experts say that if Jeju’s 2nd airport opens on schedule, by 2026 net profits could reach 230 billion won.
Of this projected total, 56 percent of the profit, or 130 billion won, comes from maintaining the facility.
The remainder is earned by charging airline companies landing fees.
Officials anticipate that the province’s coffers will take in revenue on the order of 130 billion won annually from the operation of the 2nd airport.
Recently, the province completed a year-long study on ways to be involved in the management of the new airport.
In light of the expected environmental and psychological toll that the 2nd airport will have on area residents, researchers said an equitable share in profits must be allocated to local communities.
They added that the province should be involved in the airport’s management so that those displaced by the airport and the remaining area residents can be properly looked after and supported.
As it stands, the provincial government has no power over noise pollution conditions and complaints at Jeju’s current airport. Thus the researchers stressed that in the case of the operation of the 2nd airport and related issues, the province needs to take a hands-on approach.
Provincial officials have suggested signing an agreement for mutual improvement with the Ministry of Land, Infrastructure, and Transport and the Korea Airports Corporation. They pointed to revising the Jeju Special Act so that the province will have airport management rights.
The province is reviewing the establishment of a so-called Jeju Airport Corporation to manage terminals, parking lots and advertising at the 2nd airport.
A duty-free business at the new airport run by the Jeju Tourism Organization has also been suggested.
Another proposal that is under review involves assigning priority to area residents for leases of shops and restaurants inside the new airport.
Study on Provincial Airport Management Rights
Key Points
-Local communities will suffer without an equitable distribution of profits
-Uprooted residents require government support
-Noise pollution, other issues from airport operation need gov’t oversight
Suggested Measures
-Agreement for mutual improvement with Ministry of Transport, KAC
-Revision of Jeju Special Act to allow province airport management rights
-Establishment of Jeju Airport Corporation
-Duty free business run by JTO
-Giving preference to area residents for leases
INTERVIEW
Eom Sang-geun / Researcher
Area residents have experienced difficulties and environmental damage regarding the second airport. Their lives may be uprooted. To help these communities, the province should participate in airport management.
인터뷰)엄상근 박사(제주지역 공항 운영권 참여 용역 담당)
공항 건설과정에서 나타나는 갈등, 자연환경 훼손도 있었고, 지역주민들의 삶의 터전을 잃어버릴 수도 있습니다. 이것들에 대해 공공에서 지원을 해야 하는데 제주도가 공항운영권에 참여해서...
The Ministry of Transport announced at the end of last year it would review the participation of local government in airport management and investments in airport facilities.
The province is planning to ask Seoul to consider its suggestions and enter into negotiations.
INTERVIEW
Kim Jae-cheol / Representative, Jeju Province
It is very important to have an agreement with the Ministry of Transport giving the local government management rights for airport terminal areas.
인터뷰)김재철 제주도 공항확충지원과장
기본계획상 현재 전면시설 부분에 지자체 참여할 수 있는데, 터미널 부지 내에서도 운영권 일부를 참여할 수 있는 협약을 이끌어내는 것 (가장 시급한 일입니다.)
For the province to ensure that area residents and the overall welfare of the island is protected, it will have to reach a consensus with Seoul and carefully draft or revise the relevant legislation. This includes the Jeju Special Act, the Airport Facility Act and the Local Public Enterprises Act.
[Reporter] Todd Thacker
[Camera] Hyeon Gwang-hoon, Park Byeong-june
But in addition, it is imperative that the province ready itself for opposition from the Korea Airports Corporation.
Todd Thacker, KCTV