Busan’s Democratic Party of Korea Also Calls for Integrated LCC Headquarters to Be Located in Busan

[Financial News] Jin Air plans to absorb Air Busan and Air Seoul and launch an integrated low-cost carrier (LCC) around the first quarter of next year. Against this backdrop, political circles from both the ruling and opposition parties in Busan are stepping up calls for the integrated LCC’s headquarters to be located in Busan.
The Busan City Party of the Democratic Party of Korea held a press conference titled “Call for the Integrated LCC Headquarters to Be Located in Busan” at the briefing room of the Busan Metropolitan Council on the morning of the 3rd.


Previously, on the 26th of last month, Busan Metropolitan Council members of the People Power Party held a press conference and delivered the same message: the integrated LCC headquarters should be based in Busan. They cited the need to establish the headquarters at the Gadeok Island New Airport, a symbol of balanced national development, to counter the concentration of power in the Seoul metropolitan area and revitalize the gateway airport for the southern region.
At this press conference, officials from the Busan City Party of the Democratic Party of Korea also emphasized that a regional hub airline is essential for the successful opening of the Gadeok Island New Airport. However, as plans to merge Air Busan with Jin Air move forward, the location of the integrated LCC headquarters has not yet been decided.
They opened by stating, “Korea Development Bank (KDB) currently holds a stake in Hanjin KAL, the parent company of Korean Air. The investment agreement stipulates prior consultation and consent on major management matters, as well as responsibility for establishing and implementing post-merger plans.” They added, “When the airline merger was pursued in 2020, KDB proposed developing a second regional hub airport.”
They continued, “With only three months remaining before the extraordinary shareholders’ meeting to approve the integrated LCC merger, it is difficult to understand KDB’s position that this is ‘a matter Korean Air decided autonomously.’” They raised the issue, saying, “An airport does not become a hub airport simply because it has been built. The aviation industry ecosystem—including airlines, routes and maintenance—must also be in place.”
Choi Hyung-wook, senior vice chair of the Busan City Party of the Democratic Party of Korea, emphasized, “Our party is paying attention to the fact that KDB viewed the integrated LCC issue within the broader framework of developing a regional hub airport when it provided funding to Korean Air.” He added, “For Busan, which aims to become a ‘maritime capital,’ the tri-port system of ports, railways and aviation is extremely important. Therefore, the LCC headquarters must be brought to Busan so that it can serve as a regional hub airline.”
Meanwhile, according to Choi Hyung-wook, Hong Bae Park, chair of the Busan City Party of the Democratic Party of Korea and a proportional-representation lawmaker, is expected to begin discussions with Korean Air soon regarding the location of the integrated LCC headquarters operated by Jin Air and other matters.
[email protected] Byun Ok-hwan Reporter