Government to Make 40.3 Billion KRW In-Kind Contribution to Incheon International Airport Corporation

Air Cargo Warehouse and In-flight Meal Facilities, etc.

Incheon International Airport Terminal 1. (Photo by Asia Economy DB)

[Sejong=Asia Economy Reporter Moon Chaeseok] The government announced on the 7th that it has resolved at the Cabinet meeting to make an in-kind contribution of state-owned property worth 40.3 billion won to Incheon International Airport Corporation.

The in-kind contribution targets buildings including two structures: an air cargo warehouse and an in-flight meal facility, whose private management operation rights expire this year.

In the case of Incheon International Airport, some facilities were constructed by private operators under a Build-Transfer-Operate (BTO) model, where they hold management operation rights for 10 to 30 years. Once this period ends, the operation rights revert to the state.

The government plans to reinvest the facilities whose private period ends this year back into the corporation to continue supporting the aviation industry, which is struggling due to the prolonged COVID-19 crisis. The government's total investment in the corporation (from the Special Account for Transportation Facilities) will increase from 3.6178 trillion won to 3.6581 trillion won.

The government stated, "This contribution will not only help improve the corporation's financial soundness but is also expected to contribute to operational efficiency of the airport through unifying ownership of state-owned private facilities and corporation-owned land."