On December 10, Incheon International Airport Corporation announced that it had signed a Memorandum of Understanding (MOU) with the Korea Customs Service and the Korea Aerospace Industries Association for attracting and revitalizing the Aircraft Maintenance, Repair, and Overhaul (MRO) business, as well as advancing the Incheon Airport Advanced Integrated Aviation Complex and the MRO industry.
Approximately 20 officials attended the signing ceremony, including Kim Bumho, Vice President of Incheon International Airport Corporation; Lee Myunggu, Commissioner of the Korea Customs Service; and Kim Minseok, Vice Chairman of the Korea Aerospace Industries Association.
On the 10th, at the meeting room of Incheon International Airport Corporation in Jung-gu, Incheon, Kim Bumho, Vice President of Incheon International Airport Corporation (left), Lee Myunggu, Commissioner of the Korea Customs Service (center), and Kim Minseok, Vice Chairman of the Korea Aerospace Industries Association (right), are posing for a commemorative photo at the signing ceremony of the Memorandum of Understanding (MOU) for attracting and revitalizing the Aviation Maintenance, Repair, and Overhaul (MRO) business. Incheon International Airport Corporation
With the Incheon Airport Advanced Integrated Aviation Complex being designated as a Free Trade Zone starting this month, the three organizations have agreed to cooperate on refining relevant regulations and establishing a foundation for attracting new investments from MRO businesses. As an industrial complex capable of providing one-stop services for aircraft MRO, companies moving into the zone will benefit from deferred customs duties and value-added tax after the Free Trade Zone begins operation.
Given the high proportion of imported parts in the aircraft MRO industry, which makes the sector particularly sensitive to customs duties and value-added tax, the launch of the Free Trade Zone is expected to significantly boost the attraction of new investments from global MRO companies.
Accordingly, the corporation will establish a one-stop service cluster for aircraft MRO, support new investment attraction and tenant companies, and also be responsible for security management within the Free Trade Zone.
The Korea Customs Service will provide customs administration support for the development of the aircraft MRO industry, offer advance consulting on customs procedures and operational requirements, and facilitate rapid approval for bringing aircraft and parts into the Free Trade Zone. The Korea Aerospace Industries Association plans to conduct prompt consultations for approvals related to the entry of aircraft and parts, analyze trends in the MRO industry, and support research and development (R&D) projects to foster the development of new technologies in the MRO sector.
Lee Myunggu, Commissioner of the Korea Customs Service, stated, "The aircraft MRO business is an emerging sector with high added value and strong job creation potential. The Korea Customs Service will actively support customs administration, break down regulatory barriers for new industries, and foster the development of an international hub for aircraft MRO so that companies can operate smoothly."
Lee Hakjae, President of Incheon International Airport Corporation, said, "This agreement will serve as a stepping stone for creating a world-class advanced integrated aviation complex that is highly attractive to investors. We will actively attract new investments from leading global aircraft MRO companies, aiming to become one of the world's top five MRO complexes within the next ten years, and contribute to the advancement of the domestic aviation industry and economic revitalization."
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