On the Day Minister Kim Yoonduk Vowed to "Normalize Gadeokdo," POSCO E&C Abruptly Withdrew from the Consortium

Gadeokdo New Airport, President Lee Jaemyung's Key Pledge Faces 'Crisis'
Following Hyundai Engineering & Construction, Another Core Partner Withdraws... Project Normalization Faces Mounting Obstacles
With No New Participants, Political Circles Spread Skepticism: "The Project Should Be Halted"

Kim Yoonduk, the newly appointed Minister of Land, Infrastructure and Transport, visited the site of the Gadeokdo New Airport for the first time since taking office and reaffirmed his commitment to normalizing the project. However, on the same day, POSCO E&C abruptly withdrew from the consortium, plunging the project into an even deeper crisis. Following the departure of Hyundai Engineering & Construction, which was the lead manager, the withdrawal of the third-largest shareholder has left the Gadeokdo New Airport project adrift.

Kim Yoonduk (right), Minister of Land, Infrastructure and Transport, visiting the site of the new Gadukdo Airport. Ministry of Land, Infrastructure and Transport.

On August 7, Minister Kim visited Gadeokdo and strongly expressed his determination to restart the project, stating, "I will find a wise solution and keep our promise to the public." However, on the very day of his visit, POSCO E&C officially announced its withdrawal from the consortium, causing expectations for the normalization of the project to cool rapidly. POSCO E&C had previously declared a halt to new infrastructure orders due to a series of recent major industrial accidents. This is interpreted as a preemptive measure following President Lee Jaemyung's recent instruction to consider restricting POSCO E&C from public bidding in response to the repeated serious accidents.

In May, Hyundai Engineering & Construction, the lead manager, withdrew from the project, citing insufficient construction period and budget. The industry had expected Daewoo Engineering & Construction and POSCO E&C, the second and third-largest shareholders, to reorganize the consortium, but POSCO E&C's withdrawal has dashed these hopes. The Gadeokdo consortium was composed of Hyundai Engineering & Construction holding the largest stake at 25.5%, Daewoo Engineering & Construction holding 18%, and POSCO E&C with 13.5%. The remaining construction companies each hold around 4%.

Currently, no suitable companies have emerged to fill the vacancies left by the two firms. Even Lotte Engineering & Construction, considered a strong candidate, is maintaining only a cautious and noncommittal stance. As a result, some political circles in Busan and Gyeongnam are voicing skepticism, with calls to "halt the project procedures." With the schedule for re-bidding postponed indefinitely, the Gadeokdo New Airport project has entered an unpredictable phase.

The Busan Gadeokdo New Airport project is the largest national project in Korean history, with a total budget of 13.5 trillion won. It is being promoted based on the "Gadeokdo New Airport Special Act," which includes various special provisions such as exemption from the preliminary feasibility study, following bipartisan agreement in 2021. After four failed competitive biddings last year, the Hyundai Engineering & Construction consortium was selected as the preferred bidder through a private contract. The original goal was to open the airport in 2029, but this now appears virtually impossible. On July 25, President Lee promised at a regional development meeting in Busan, "We will not let it run aground or be delayed."