Gadeokdo New Airport project body holds first meeting to address rising construction costs

A project coordination body involving the central government, local government and the project operator has begun formal operations to advance construction of Gadeokdo New Airport.

South Korea's Ministry of Land, Infrastructure and Transport said it will hold the body's inaugural meeting Friday afternoon with Busan and the Gadeokdo New Airport Construction Authority to discuss measures including how to reflect rising construction costs in the contract. The three-way standing communication and cooperation framework was activated after Daewoo Engineering & Construction — the contractor for the site preparation work — submitted basic design documents on Sept. 7, marking the start of pre-construction preparations such as permit consultations and detailed design work.

The meeting will focus particularly on sharing the need for swift action and discussing how to incorporate construction cost increases accumulated since the outbreak of conflict in the Middle East into the contract amount. Participants will also closely examine on-site difficulties, including concerns raised by regional construction companies in the consortium, and will cover the status of consultations among related government ministries on these issues.

Regional construction companies in the consortium have demanded that construction costs be raised by 620 billion won ($453 million), citing factors such as oil prices and exchange rates. The government, political circles and Busan are all moving quickly to find a response.

The meeting will also take up plans for breaking ground on priority construction work before year-end and preparations for a ground-breaking ceremony. Relevant agencies will work together to shape the ceremony into an event that reflects the region's development vision, not merely marks the start of a nationally significant project.

Participants will further discuss a comprehensive regional development plan linking the new airport with its surrounding areas.

The coordination body plans to hold regular quarterly meetings, with working-level consultations convened as needed. It will cover a broad range of cooperative tasks — from permit procedures and other pre-construction preparations to safety and quality management during construction and development linked to surrounding areas.

Jung Chae-gyo, director general for aviation policy at the Ministry of Land, Infrastructure and Transport, said Gadeokdo New Airport is "a national project to build a 24-hour gateway airport that the southern region has long aspired to." He added that the government, local government and project operator would "move forward as one team, without wavering, from breaking ground this year through to opening on schedule."