3.48 Trillion Won MRO Investment Agreement with U.S. Firm KMC
Global Assembly Line to Be Built on a 30,000-Pyeong Site by 2028
Expected Annual Output of 10 Freighters and Creation of 1,000 Jobs
Kim Youngrok, governor of Jeonnam Province, is signing an investment agreement with Park Bongcheol, chairman of U.S. KMC, on the 26th in the reception room of the provincial government office to revitalize the MRO industry at the Muan Aviation Specialized Complex. Provided by Jeonnam Province
Jeollanam-do announced on February 26 that it signed an aviation maintenance, repair and overhaul (MRO) investment agreement worth 348 billion won with KMC, a U.S.-based specialist in passenger-to-freighter (P2F) cargo aircraft conversion, in the provincial government reception room, laying the groundwork for developing Muan International Airport into a global air cargo hub.
Governor Kim Yeongrok of Jeollanam-do and Park Bongcheol, chairman of KMC, attended the signing ceremony.
Under the agreement, KMC will establish a global assembly line for large cargo aircraft conversion on a site of about 30,000 pyeong within Muan International Airport by 2028.
As a first-phase project, based on its Supplemental Type Certificate (STC) technology for converting aging passenger aircraft such as the Boeing 777-300ER into freighters, the company plans to produce 10 large cargo aircraft per year.
In particular, this investment is expected to create around 1,000 high-quality jobs in the region, providing new opportunities for local youth and injecting explosive vitality into the local economy.
Strong synergy effects are also anticipated with the Muan National Industrial Complex that will be created in connection with the relocation of the Gwangju military airport. Once the vast land and infrastructure secured through the relocation are combined with KMC's advanced technological capabilities, Muan is projected to rise as the undisputed center of South Korea's aviation industry.
Following the first-phase cargo aircraft conversion project, KMC plans to invest an additional 150 billion won in a second phase from 2028 to 2030 to establish an integrated civil-military aviation maintenance center. Through this, the company aims to bring back to the domestic market the maintenance volume for large military and government aircraft that has heavily depended on overseas facilities, and to achieve technological self-reliance.
Park Bongcheol, chairman of KMC, said, "We decided to invest in order to revitalize Muan Airport and thereby boost the regional economy," adding, "Based on KMC's unrivaled large aircraft conversion technology, we will build an aviation industry ecosystem in Muan and turn Jeollanam-do into a global center of the aviation industry."
An official from Jeollanam-do said, "This agreement will serve as a decisive milestone for Jeollanam-do to leap forward as a global MRO industry hub, while enabling Muan International Airport to reemerge as a global air cargo hub," and emphasized, "We will actively provide administrative and financial support so that KMC can soar as the world's leading aviation company from its base in Jeollanam-do."
Muan Airport is scheduled to complete its runway extension project in March this year (from 2,800 meters to 3,160 meters), thereby establishing the infrastructure needed for takeoffs and landings of large aircraft. Starting in 2026, Jeollanam-do plans to accelerate the advancement of maintenance technologies and the training of specialized personnel by building a 20 billion won "Aviation MRO Technology Support Center."
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