Gadeokdo New Airport Construction Costs Proposed to Rise by KRW 850 Billion… Construction Start and 2035 Opening Outlook

Counted among the major national projects in Busan, Ulsan, and South Gyeongsang Province, a proposal to add about KRW 850 billion to the site development costs for Gadeokdo New Airportis under discussion.

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As the government and ruling party discuss amending a special law to establish grounds for the increase, attention is focused on whether the delayed project can regain momentum toward construction.

However, as of October 31, 2026, the cost increase has not been finalized, and a contract with the Daewoo Engineering & Construction consortium has not yet been signed.

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The initial target was to begin the early construction portion in November 2026, but it remains unclear whether work can actually start then.

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Why is a KRW 850 billion increase being pursued, and how should the construction start and the 2035 opening target be viewed?

At a ruling party-government consultation on October 28, the government and ruling party discussed a proposal to increase Gadeokdo New Airport site development costs by about KRW 850 billion.

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If this amount is simply added to the existing site development costs of about KRW 10.7 trillion, the total would be about KRW 11.55 trillion.

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This figure refers to site development costs, not the airport's total project cost. Nor does the discussion mean that the increase has been finalized and incorporated into an actual contract.

A point that is easy to confuse is that KRW 620 billion and KRW 850 billion should be treated as separate figures, not added together.

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KRW 620 billion is the construction cost increase requested by the contractor, while KRW 850 billion is the increase proposal discussed by the government and ruling party. They are not amounts to be added twice for the same item.

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The KRW 850 billion discussed by the government and ruling party is about 7.9% of the existing site development costs.

The background to the construction cost negotiations includes international instability, such as war in the Middle East, and the resulting rise in raw material and construction costs.

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Contractors worry that rising fuel and material prices could make construction unprofitable at the original bid price.

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Gadeokdo New Airport is a large-scale civil engineering project involving land development in both marine and land areas.

Because the project has a long construction period and requires substantial materials and equipment, cost burdens resulting from price fluctuations are a key issue.

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The issue is that it is difficult to account for construction cost increases that occur before a contract is signed through the existing contract price adjustment system.

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The government and ruling party are therefore pursuing an amendment to the special law so that construction costs can be adjusted even when prices rise before a contract is signed due to force majeure, such as war.

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However, amending the law and finalizing a decision to pay an actual increase are separate procedures.

The Daewoo Engineering & Construction consortium received a qualified rating for its basic design for the Gadeokdo New Airport site development project.

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The consortium received the qualified rating for its basic design in September 2026, but negotiations over cost adjustments and guarantees had not been completed by the end of October.

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The key point in the negotiations is not only the size of the increase, but also how the additional costs will actually be compensated.

The government believes an amendment to the special law can establish a legal basis for adjusting construction costs.

Construction companies are also calling for effective safeguards, such as a memorandum of understanding (MOU), until the law amendment is finalized.

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Since the consent and signatures of the consortium's participating companies are required, negotiations could take longer.

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The construction period's extension from 84 months to 106 months after the Hyundai Engineering & Construction consortium previously withdrew from the project is also adding to schedule uncertainty.

The question drawing the most attention is when construction will actually begin.

The schedule previously presented was to start the early construction portion in November 2026, begin main construction in the first half of 2027, and open the airport in 2035.

However, this schedule is a target, not a confirmed construction schedule.

According to an October 31 report, the Ministry of Land, Infrastructure and Transport is continuing discussions with the goal of passing the special law and signing the early construction contract within the year.

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However, it did not confirm whether on-site construction could also begin within the year.

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This is because passage of the special law, an agreement on construction cost guarantees, the consortium's consent, contract signing, and subsequent design procedures are still pending.

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That is why it is difficult to conclude that on-site construction will begin immediately even if a contract is signed.

Gadeokdo New Airport is being pursued as an aviation and logistics hub for the southern region, connecting Busan with Ulsan and South Gyeongsang Province.

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Once completed, the airport is expected to expand international flight networks, handle air cargo, and connect with nearby logistics industries such as Busan New Port.

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In the long term, it could also affect transport links to Gadeokdo and development in the surrounding area.

However, realizing these expected benefits will require not only building the airport but also providing related infrastructure.

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Therefore, at this point, it is difficult to make a definitive judgment on whether the 2035 opening target will be met.

Even if construction cost negotiations are completed, challenges remain, including lengthy marine civil engineering work, schedule management, and ensuring safety.

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Discussions on increasing construction costs are important, but the timing of the actual contract and construction start is a more direct measure of the project's progress.

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The KRW 850 billion increase proposal could help normalize the project, but if it does not lead to a law amendment and a contract, schedule delays may continue.

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The key milestones to watch going forward are passage of the special law by the National Assembly and whether the Daewoo Engineering & Construction consortium signs the early construction contract.

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The key now is not merely to announce target dates, but to show progress through specific contracts and on-site construction.

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