Table of Contents
- Gadeokdo New Airport land development project, commencement schedule visible for the second half of the year
- Withdrawal of Hyundai Engineering & Construction and POSCO E&C, transition to Daewoo Engineering & Construction's leadership
- Daewoo Engineering & Construction secures over 30% stake, to have substantive construction responsibility
- Possibility of solo PQ submission, scenario for private contracts after failure
- Construction roadmap for Gadeokdo New Airport intensifying after 2026
- Conclusion: Restructuring centered on Daewoo Engineering & Construction, entering the normal track for the Gadeokdo New Airport project
- Frequently Asked Questions (FAQ)
Gadeokdo New Airport land development project, commencement schedule visible for the second half of the year
The construction of the Gadeokdo New Airport, a major national project in southeastern Busan, is now being actively carried out.
The Gadeokdo New Airport Construction Corporation plans to simultaneously progress administrative and bidding procedures with the goal of starting the priority land development work in the second half of this year.
To that end, land acquisition is set to begin in February, followed sequentially by temporary relocation of residents and compensation procedures starting in April.
After evaluating the basic design, the qualified contractor for the implementation design will be selected by August, with contracts expected to be finalized in the second half of the year to commence full-scale construction.
Withdrawal of Hyundai Engineering & Construction and POSCO E&C, transition to Daewoo Engineering & Construction's leadership
The most significant change in this project is that Daewoo Engineering & Construction has clearly taken on the central role in the construction consortium.
Initially, Hyundai Engineering & Construction was selected as the preferred negotiator with a stake of over 25%, but due to differences in opinions regarding the construction period and conditions, it decided to withdraw from the project in 2025. Following that, POSCO E&C also exited, causing a temporary stagnation in the project. However, with Daewoo Engineering & Construction's active involvement, a new consortium formation was quickly underway.
In response, the government has adjusted the construction period from the original 84 months to over 106 months, and the total project cost has been revised to approximately 10.7 trillion won to improve the conditions for project advancement.
Daewoo Engineering & Construction secures over 30% stake, to have substantive construction responsibility
Daewoo Engineering & Construction is expected to take the lead in the Gadeokdo New Airport land development project with an ownership stake of over 30%. This is interpreted as an intent to clarify the leading authority and responsibility for the construction.
Currently, several large and mid-sized construction companies, including Hanwha Construction, HJ Heavy Industries, Jungheung Construction, Kumho Construction, and Dongbu Construction, as well as local companies in Busan, have expressed their interest in participating, thus expanding the size of the consortium.
However, Lotte Engineering & Construction has decided not to participate in the first PQ submission, increasing the likelihood that Daewoo Engineering & Construction will secure its stake first. Consequently, Daewoo's final stake is expected to increase further. These changes will have significant implications for the future direction of the Gadeokdo New Airport project.
Possibility of solo PQ submission, scenario for private contracts after failure
Industry attention is focused on the possibility that the Daewoo Engineering & Construction consortium may submit a proposal alone in this bidding. The preliminary review for bidding participation eligibility is set to close on January 16, and if competition does not form, it could lead to a scenario of private contract negotiations following failure.
In this process, the share structure with participating companies may be adjusted slightly, but there is a prevailing analysis that the dominant position of Daewoo Engineering & Construction is unlikely to be shaken. This is because discussions on the sharing of the basic design service fees and the allocation of shares have progressed significantly. Consequently, expectations for future directions are high.
Construction roadmap for Gadeokdo New Airport intensifying after 2026
The Gadeokdo New Airport land development project is expected to take more than 100 months and is proceeding as a large-scale civil works project costing trillions of won.
Groundbreaking is anticipated to begin in the second half of this year, with more than 20 licensing procedures, including environmental impact assessments and disaster impact assessments, concurrently in progress.
This project is expected to become a crucial infrastructure not only for airport construction but also for Busan's global hub strategy and the concept of the southern mega-city.
Conclusion: Restructuring centered on Daewoo Engineering & Construction, entering the normal track for the Gadeokdo New Airport project
The Gadeokdo New Airport site development project faced temporary challenges due to the withdrawal of Hyundai Engineering & Construction and POSCO E&C, but is regaining momentum as it has been restructured into a consortium led by Daewoo Engineering & Construction with more than 30% stake.
This institutional change has led to an extension of the construction period and adjustments to the project budget, allowing for serious construction to commence after 2026.
While the results of the PQ and the final stake structure are yet to be confirmed, the Gadeokdo New Airport is once again gaining prominence as a future infrastructure project for Busan.
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Frequently Asked Questions (FAQ)
Q. What is the commencement schedule for the Gadeokdo New Airport land development project?
The Gadeokdo New Airport land development project is targeted to start its priority construction in the second half of 2023.
The Gadeokdo New Airport Construction Corporation is preparing to start the priority construction of the land development project in the second half of this year while concurrently proceeding with administrative and bidding processes. Land acquisition is set to start in February, and in April, procedures for the temporary relocation of residents and fishing compensation will be sequentially carried out. After selecting a qualified contractor for the basic and implementation designs by August, the contracts will be signed in the second half of the year to begin full-scale construction.
Q. What role will Daewoo Engineering & Construction take in the Gadeokdo New Airport project?
Daewoo Engineering & Construction will secure over 30% stake and act as the lead contractor and responsible construction company.
Daewoo Engineering & Construction has emerged as the central figure in the construction consortium for the Gadeokdo New Airport land development project with over 30% ownership. After the withdrawal of Hyundai Engineering & Construction and POSCO E&C, Daewoo Engineering & Construction reflects the intention to clarify the leading authority and responsibility for the project as the lead contractor. Several mid-sized and local construction firms are also expressing their interest in joining the consortium led by Daewoo Engineering & Construction.
Q. Why did Hyundai Engineering & Construction and POSCO E&C withdraw from the Gadeokdo New Airport project?
Hyundai Engineering & Construction withdrew in 2025 due to disputes over the construction duration and conditions, and POSCO E&C followed suit.
Initially, Hyundai Engineering & Construction was selected as the preferred negotiator with over 25% ownership but decided to withdraw from the project in 2025 due to differences in opinions about the construction duration and project conditions. Following that, POSCO E&C also stopped its participation, temporarily stagnating the project. However, with Daewoo Engineering & Construction's proactive involvement, the consortium was restructured, and the project resumed its normal operations.
Q. How is the bidding situation for the Gadeokdo New Airport land development project progressing?
There is a high possibility that the Daewoo Engineering & Construction consortium will submit a proposal alone, and private contracts are also being considered.
After the PQ submission deadline on January 16, if there are no competing bidders, the bidding is likely to fail, leading to negotiations for private contracts. Under such circumstances, the Daewoo-led structure is expected to remain strong while discussions on the share structure adjustments and service fee allocations are ongoing. The industry expects the project to be carried out under a solo consortium structure led by Daewoo Engineering & Construction.
Q. What is the total duration and scale of the Gadeokdo New Airport land development project?
The project is being carried out as a large civil engineering project that will take over 100 months.
The Gadeokdo New Airport land development project is a large-scale civil engineering project that will take over 100 months to complete, with trillions of won being invested. Groundbreaking is set for the second half of this year, with over 20 licensing procedures, including environmental impact assessments and disaster impact assessments, being carried out concurrently, and it is expected to become an important infrastructure for building Busan's global hub and southern mega-city.
