Meeting held with Busan chapter chief of Democratic Party of Korea

Timely opening of Gadeokdo airport, unified LCC headquarters relocation also raised

The Busan Chamber of Commerce and Industry holds a meeting with the Busan chapter of the Democratic Party of Korea on Monday to seek support in attracting public institutions and addressing key economic issues facing the city. [Busan Chamber of Commerce and Industry]
The Busan Chamber of Commerce and Industry holds a meeting with the Busan chapter of the Democratic Party of Korea on Monday to seek support in attracting public institutions and addressing key economic issues facing the city. [Busan Chamber of Commerce and Industry]

The Busan Chamber of Commerce and Industry on Monday asked the Democratic Party of Korea's Busan chapter to actively support efforts to resolve the city's key economic challenges, including the relocation of public institutions under the second phase of the government's decentralization drive and the timely opening of Gadeokdo New Airport.

At the meeting, hosted at the chamber and attended by chamber President Yang Jae-saeng and other board members alongside Democratic Party Busan Chapter Chief Park Hong-bae and Senior Vice Chairman Choi Hyeong-uk, the chamber outlined three priorities: attracting key institutions slated for relocation under the second phase of the public-institution decentralization plan to Busan, ensuring the timely opening of Gadeokdo New Airport, and securing the headquarters of the unified low-cost carrier in Busan along with substantive hub functions.

On the second-phase relocation plan scheduled for the second half of this year, the chamber conveyed the regional business community's position that Korea Development Bank and other policy finance institutions, along with agencies under the Ministry of Oceans and Fisheries, should be concentrated in Busan to complete a cluster combining the maritime industry with policy finance.

On Gadeokdo New Airport, the chamber called for securing adequate construction costs and improving related regulations to ensure that the priority construction phase breaks ground in November and that the main construction work proceeds without delay in the first half of 2027. It said the relevant standards should be updated to allow cost increases caused by rising international oil prices and raw material prices — unavoidable inflation that occurred between the tender announcement and contract signing — to be reflected in construction costs.

The chamber warned that delays in regulatory reform could lead to consortium members pulling out and disrupt the project. It asked the ruling party to press the government to finalize its policy on reflecting price fluctuations in time for the November priority-phase contract and a ground-breaking before year's end.

The chamber also raised concerns that the merger of Air Busan, Jin Air and Air Seoul could weaken the regional aviation industry. It said the headquarters of the unified low-cost carrier should be located in Busan and that the city must secure substantive hub functions covering routes, fleet, maintenance and employment. The chamber said measures are needed to ensure that regional employment, subcontractors and the broader aviation industry remain intact after the merger.

In addition, the chamber asked the government, the National Assembly and the Democratic Party's Busan chapter to take an active role in establishing a southern-region hub carrier system ahead of the airport's opening and in minimizing the economic impact of the merger on the local economy.

"I hope Chairman Park Hong-bae and the Democratic Party's Busan chapter will play an active role in ensuring that the demands of the regional business community are specifically reflected in government policy," chamber President Yang said.


kaf2002@heraldcorp.com