"Securing an Appropriate Construction Cost and Expediting Permits Are Key to Gadeokdo New Airport"

[Financial News] Experts joined forces to ensure the successful construction of the airport, including the adjustment of construction costs for the Gadeokdo New Airport project to reflect actual conditions.
The Committee for the Promotion of a Gateway Airport in the Southeastern Region said it held the 'Expert Policy Discussion on Successfully Building Gadeokdo New Airport' at the Busan Chamber of Commerce and Industry on the afternoon of the 18th, together with Civic Empathy for Preparing for the Future Society.
The discussion was organized to explore ways to secure an appropriate construction cost that reflects the rapidly changing construction environment and to expedite complex permitting and administrative procedures. The submission of the basic design documents for the Gadeokdo New Airport site preparation project has made the start of priority construction work within the year appear increasingly likely.
About 200 people attended, including Yang Jae-saeng, standing co-chair of the committee; Mu-gil Kang, chairman of the Busan Metropolitan Council; Jeong Hyeong-yeol, chairman of the Busan Branch of the Construction Association of Korea; and Hong Sun-heon, special policy adviser to the Busan Metropolitan City Government. Experts in construction, aviation, economics, law and public administration, as well as representatives of relevant agencies and civil society organizations, also took part.
Choi Man-jin, emeritus professor of architecture at Gyeongsang National University, gave a presentation titled 'What Should Be Reviewed Before Construction Begins on Gadeokdo New Airport?' He explained, "We need to assess the progress of the project and changes in the construction environment, while securing an appropriate construction cost and expediting administrative procedures such as permits and approvals as prerequisites." He added, "As construction costs have risen due to difficult-to-predict external factors, including changes in international conditions and higher raw-material prices since the bid announcement, the actual increase needs to be objectively verified and reasonably reflected."
He proposed recognizing exceptional cost increases as force majeure or introducing a temporary special provision that would allow price changes between the bid announcement and contract signing to be reflected.
To accelerate the permitting process, he also proposed establishing a government-wide task force led by the Office for Government Policy Coordination, with the participation of relevant ministries, the Busan Metropolitan City Government and the Gadeokdo New Airport Construction Authority.
Following the presentation, a comprehensive discussion was held with seven experts in aviation, construction, economics, law and urban planning. Kim Gwang-il, head of the Department of Aviation Operations at Silla University, moderated the session. Participants said objective criteria were needed to comprehensively assess credible construction cost indexes, actual procurement prices, exchange rates, and fluctuations in raw-material and labor costs.
They also stressed that the government, the Busan Metropolitan City Government, the Gadeokdo New Airport Construction Authority and the construction industry should work together to secure an appropriate construction cost and expedite permits. This would ensure that construction continues without disruption through the airport's planned opening in 2035, even after priority construction work begins within the year, while resolving uncertainties surrounding the contract and site conditions at an early stage.
In his welcoming remarks, Yang Jae-saeng said, "Together with the local business community, I will help develop a practical solution that ensures safety and quality alongside speed, so that Gadeokdo New Airport can take flight as a new gateway to the skies for the southern region."
[email protected] Kwon Byeong-seok Reporter