Transport minister pushes ahead with new Busan airport, railway merger plans

Minister of Land, Infrastructure and Transport Kim Yun-duk speaks during a press conference in Sejong, Monday. Courtesy of Ministry of Land, Infrastructure and Transport

Minister of Land, Infrastructure and Transport Kim Yun-duk said Monday that introducing a new airport in Busan and merging the country's two major railway companies are among his top priorities, signaling a potential shake-up of Korea’s transport infrastructure.

Kim said the ministry is currently reviewing expert opinions on the construction timeline for the new airport on Gadeok Island in Busan. The 84-month timeline initially proposed by the government drew backlash from preferred contractor Hyundai E&C, which argued the period was too short. The company, which had organized a consortium with Daewoo E&C and POSCO E&C and wanted a timeline of 108 months, withdrew from the project in May, putting it on hold.

The situation is raising concerns that the construction of the airport could face significant delays. The former Yoon Suk Yeol administration tied the airport to Busan’s bid for the 2030 World Expo, a move that drew criticism from private companies and experts who said there had not been sufficient time for planning.

“After Hyundai E&C gave up its turnkey project, many questions are lingering over whether the 84-month timeline was actually realistic. The questions have come not only from within the Transport Ministry, but also from Busan Metropolitan City, private companies and experts,” Kim said during a press conference in Sejong.

Kim said the project’s final timeline will be decided within this year, with the ministry currently coordinating opinions.

A proposed plan for a new airport on Busan's Gadeok Island / Korea Times file

“We cannot just say the job shall be done in 84 months and execute it right away. We are now gathering opinions from both ruling and opposition parties, businessmen, professors and the city of Busan. We will have to make the ends meet during October or November, coming up with the final timeline and construction stages in detail,” Kim said.

Construction of the airport, according to private constructors and the government, is particularly complicated because of the plan to build it on an island south of the country's largest port city, where rough waves are constantly hitting the shoreline. A ministry official said the project this year has secured a budget of about 1 trillion won ($714 million).

The ministry is also planning to merge the KTX and SRT, the country’s two largest high-speed railways, according to the minister. However, he noted the initiative will take time because it needs buy-in from both companies.

“Some tasks need longer time to gain traction than others. Then, their progress will receive a stronger boost in a shorter period than before. That’s what I picture regarding the merger," Kim said. "Putting together two different organizations into a new organic entity can be emotionally consuming. We have right now a meeting set up this afternoon regarding the issue. It will take time to persuade both of the companies,” Kim said.

The merger of KTX, operated by Korea Railroad, and SRT, by SR, has been on the table for years, amid concerns about the two railways servicing the same regions, cutting down the industry’s efficiency and increasing inconvenience for customers. The potential merger, on the other hand, has raised concerns that it would eliminate competition that encourages each firm to improve its technical capacity and service quality.