[Public Voices] Cheongju Airport Establishment and Expansion: A Catalyst for Economic Revitalization

Jinsanghwa, President of Chungbuk Development Corporation.
[Photo by Chungbuk Development Corporation]

This year's exports are expected to reach a record high of approximately 700 billion dollars, but private consumption is shrinking, tax revenue is shortfalling, and high interest rates, high inflation, high exchange rates, and economic recession are causing declines in jobs and income. Seoul's real estate prices also face limitations with the supply-focused '8·8 Real Estate Measures,' leading to a reluctant focus on stabilizing the real estate market through interest rate policies.

Externally, political and economic situations are intensifying with increasing uncertainty over the U.S. presidential election, prolonged Russia-Ukraine and Middle East wars, and the Russia-North Korea honeymoon. Market instability is worsening due to fears of a U.S. recession and pressure for interest rate cuts, and the export market driven by semiconductors is feared to deteriorate.

The government seems to be complacent with maximizing exports through supporting manufacturing competitiveness, but the actual export growth centered on large corporations without employment limits the trickle-down effect. As a result, the contraction of private consumption raises concerns about economic recession and hindrance to national unity due to reduced jobs and income for ordinary citizens. Furthermore, the previous government perceived the real estate market as speculative and triggered supply shortages through strengthened regulations. Past governments have repeatedly expanded housing supply in the Seoul metropolitan area, simply recognizing the sharp rise in Seoul's housing market as a supply shortage issue. However, population outflow south of the metropolitan area and accelerated regional extinction, along with intensified competition in the metropolitan area, continue to exacerbate the low birthrate problem. Concentration of education, transportation, hospitals, airports, along with expansion of complex cultural healing spaces in Seoul such as Gwanghwamun and Yeongdong-daero plazas, culture, and pop-up stores continues.

It is an urgent task to foster the tourism industry as a new growth engine south of the metropolitan area and to create complex cultural healing spaces. The tourism employment coefficient is twice that of manufacturing. To expand job creation in the service sector, it is important to enhance tourism and leisure infrastructure at the whole-government level, including revitalizing old downtown plazas, installing underground parking lots, and preparing complex cultural healing spaces.

In the short term, government expansion of housing supply in the metropolitan area is inevitable, but government support for quality and affordable housing supply south of the metropolitan area is also necessary. If this is achieved, job creation and income increase for ordinary citizens, especially youth and women, centered south of the metropolitan area will activate private consumption and further achieve regional and national integration.

A national-level infrastructure project to maximize short-term effects is the establishment and expansion of Cheongju Airport. The benefits for about 15 million people in the southern metropolitan area, Chungcheong, and Gangwon regions will increase dramatically. Housing demand will rise in the southern metropolitan area and Chungcheong region, stabilizing the housing market in Seoul and other metropolitan areas. If a virtuous tourism belt cycle is established starting from the central region with Cheongju Airport to the metropolitan area and Yeongho and Nam regions, foreign tourist inflow of 10 million in the central region will generate foreign currency earnings and expand the service industry, creating more jobs.

Nationwide, if the tourism industry is fostered as a future new growth engine based on abundant content such as K-Culture, attracting 50 million foreign tourists could generate about 120 billion dollars annually in tourism revenue, comparable to semiconductors. If government policy changes and innovations enable fair and active creative alternative competition aligned with the market economy in each sector, true national integration through economic revitalization may be achieved. The emotional 10 consecutive wins in the women's archery team event at the last Paris Olympics are evidence of Korea's resilience.

Jin Sang-hwa, President of Chungbuk Development Corporation