Table of Contents
- Re-promotion of the Gadeokdo New Airport: Finding Solutions On-site
- Gadeokdo New Airport: The Start of the Tangle is 'Withdrawal of Hyundai Engineering'
- Late June to July: Industry Meetings Raise Possibility of Restructuring Lead Contractor
- Early August: Visualization of POSCO E&C's Exit; Daewoo Engineering's Independent Promotion Faces Challenges
- The Key is Bidding Conditions... Restructuring of the Lead Contractor and Consortium is the Key
- Conclusion: Back to the Starting Point, But Hopes Remain
- Frequently Asked Questions (FAQ)
Re-promotion of the Gadeokdo New Airport: Finding Solutions On-site
On August 7, 2025, Minister Kim Yoon-deok of the Ministry of Land, Infrastructure and Transport visited the Gadeokdo New Airport site to take the first step towards normalizing the project. This visit was the first official on-site inspection since Hyundai Engineering's consortium withdrew, during which Minister Kim hosted a meeting with experts and toured key locations such as Daehang Viewpoint and Saebaji Port, gathering on-site opinions.
He stated, “The Gadeokdo New Airport is a promise to the people and a heartfelt wish of the local residents,” and added, “I will explore ways to speedily re-promote the project while ensuring safety and quality.” This aligns with the President’s remarks made on July 25 in Busan that “the project must not be stranded or delayed.”
Gadeokdo New Airport: The Start of the Tangle is 'Withdrawal of Hyundai Engineering'
The problems with the Gadeokdo New Airport project began at the end of April 2025. At this point, the lead contractor, Hyundai Engineering, requested an extension of the construction period from 84 months to 108 months, along with an additional 1 trillion won for construction costs, resulting in conflicts with the Ministry of Land, Infrastructure and Transport. Ultimately, on June 30, Hyundai Engineering officially decided to withdraw from the project.
As the only company with caisson technology and specialized manufacturing infrastructure, Hyundai Engineering held key technology and leadership for this project. As a result, the project faced a serious situation where it was not only a matter of changing the lead contractor, but also shaking the very engineering foundation. Concerns regarding the direction of future progress are intensifying.
Late June to July: Industry Meetings Raise Possibility of Restructuring Lead Contractor
After Hyundai Engineering's withdrawal, on June 29, the Ministry of Land, Infrastructure and Transport began holding unofficial meetings with the top 10 construction companies to gather opinions from the industry. During this meeting, Daewoo Engineering mentioned the possibility of participating as the lead contractor, while Hanwha Engineering and Lotte Engineering showed positive responses regarding the easing of bidding conditions.
As a second lead contractor holding 18% of the shares, Daewoo Engineering emphasized their technological capabilities and experience based on their record in projects such as the Busan Gogo Bridge and Al-Faw Port in Iraq. In contrast, POSCO E&C, which held 13.5% of the shares, faced difficulties participating in public tenders due to a recent serious accident resulting in fatalities.
As a result of these changes, the combination of “Daewoo Engineering and new partners” has become more apparent. With increasing attention from the industry, future trends in the construction market are being closely watched.
Early August: Visualization of POSCO E&C's Exit; Daewoo Engineering's Independent Promotion Faces Challenges
On August 8, with Hyundai Engineering withdrawing from the site, POSCO E&C is also undergoing nationwide investigations. This increases the likelihood of their exit from public tenders. On the same day, the Ministry of Employment and Labor planned to summon CEOs of 20 large construction companies to discuss measures for reducing serious accidents. As a result, anxiety is growing among companies.
Ultimately, POSCO E&C's withdrawal makes it difficult for Daewoo Engineering to independently promote as the lead contractor. It poses a significant burden to undertake a large-scale project worth 13 trillion won alone, necessitating participation from another large construction company to replace POSCO's shares. This change is expected to have a significant impact on the construction industry.
The Key is Bidding Conditions... Restructuring of the Lead Contractor and Consortium is the Key
The Ministry of Land, Infrastructure and Transport is considering whether to proceed with the existing basic plan or conduct a comprehensive re-evaluation that includes a second runway. In this regard, the political sphere in Busan is showing strong resistance, raising concerns that “if the basic plan is modified, it will be delayed by at least 3 years.”
Nevertheless, the government recognizes the realistic issues regarding construction duration and budget, and the relaxation of bidding conditions seems to be a matter of time. Lotte Engineering, Hanwha Engineering, and DL E&C are expected to make decisions regarding their participation as soon as the bidding conditions are finalized.
Therefore, it is a moment to carefully observe the future progress.
Solutions and Prospects for Project Re-promotion
The most realistic prospect at present is to select Daewoo Engineering as the lead contractor, with participation expected from at least one of Lotte, Hanwha, or DL E&C, all of whom have caisson experience.
If the Ministry of Land, Infrastructure and Transport adjusts the construction period from the existing 84 months to around 100 months and accommodates the increase in construction costs, the reformation of the consortium could accelerate. In this process, the reinforcement of ultra-soft ground and the continuous production capacity of breakwater caissons will serve as critical technical factors determining the success of the bid.
Conclusion: Back to the Starting Point, But Hopes Remain
While the goal of opening in 2029 has become realistically difficult, amid the challenges of the withdrawals of Hyundai Engineering and POSCO E&C, the government and Busan City need to quickly finalize the re-bidding conditions and reorganize the consortium.
The visit of the new Minister of Land, Infrastructure and Transport to Gadeokdo marks an important milestone in addressing these tasks. If strategic adjustments by the Ministry, responsible participation by the industry, and cooperation from the local community are achieved, the Gadeokdo New Airport project is expected to regain momentum.
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Frequently Asked Questions (FAQ)
Q. When was the most recent on-site inspection of the Gadeokdo New Airport project conducted?
On August 7, 2025, Minister Kim Yoon-deok visited the site and expressed his commitment to normalize the project.
On August 7, 2025, the new Minister Kim Yoon-deok of the Ministry of Land, Infrastructure and Transport directly visited the Gadeokdo New Airport site for the first official on-site inspection. He hosted a meeting with experts and toured key sites, including the Daehang Viewpoint and Saebaji Port, to gather opinions. This was the first inspection following Hyundai Engineering's withdrawal from the consortium, focusing on quickly re-promoting the project and ensuring safety.
Q. What caused Hyundai Engineering's withdrawal from the Gadeokdo New Airport project?
Hyundai Engineering withdrew after conflicts with the Ministry of Land, Infrastructure and Transport over their requests for an extended construction period and additional costs.
At the end of April 2025, Hyundai Engineering requested to extend the construction period from 84 months to 108 months and to increase the construction cost by 1 trillion won, resulting in disagreements with the Ministry of Land, Infrastructure and Transport. Consequently, the conflict intensified, and on June 30, Hyundai Engineering officially withdrew from the project. As the key lead contractor possessing caisson methods and specialized production infrastructure, the withdrawal significantly impacted the technological foundation and leadership.
Q. What is the reason and impact of POSCO E&C's withdrawal from the consortium?
Due to a fatal accident, it has become difficult for POSCO E&C to participate in public tenders, increasing the likelihood of their exit.
POSCO E&C, as a shareholder holding 13.5%, was participating in the consortium, but recent serious accidents resulted in limitations on participating in public tenders. Consequently, a nationwide investigation is ongoing, and the likelihood of their withdrawal from public tenders has increased. POSCO E&C's exit has added burden on Daewoo Engineering's independent promotion as the lead contractor, creating a scenario where participation from another large construction company is essential.
Q. What is the outlook for the restructuring of the lead contractor and consortium for the Gadeokdo New Airport project?
Daewoo Engineering is likely to become the lead contractor, with potential participation from Lotte, Hanwha, and DL E&C.
The Ministry of Land, Infrastructure and Transport is reviewing the relaxation of bidding conditions, and selecting Daewoo Engineering as the lead contractor is a strong possibility. Participation from Lotte Engineering, Hanwha Engineering, and DL E&C, all with caisson experience, is expected. The construction period could be adjusted from the existing 84 months to around 100 months, and an increase in construction costs is likely to be accepted. Critical technical factors for successful bidding will include ground reinforcement and continuous production capacity of breakwater caissons.
Q. What is the schedule for the Gadeokdo New Airport project and the future outlook?
While the 2029 opening is challenging, re-bidding and restructuring of the consortium for project re-promotion are underway.
Due to the withdrawals of Hyundai Engineering and POSCO E&C, the goal of opening in 2029 has become realistically difficult. The government and Busan City are pushing for quick finalization of the re-bidding conditions and restructuring of the consortium. The visit of Minister Kim Yoon-deok is considered a starting point for these re-initiation efforts. In the future, the strategic adjustments of the Ministry, responsible participation from construction companies, and cooperation from the local community are expected to work in harmony and help the project gain momentum once again.
