Busan Business Community Issues Statement Urging Discussion on Maintaining Air Busan Regional Zone

Air Busan Divestiture... Urging Positive Stance Changes from KDB, MOLIT, and Korean Air

Product of Corporate Merger Policy Decision, 'Must Keep Promise to Discuss Air Busan'

Air Busan is a Valuable Corporate Asset of Busan and a Vanguard for Early Activation of Gadeokdo New Airport

The Busan Chamber of Commerce and Industry (Chairman Yang Jae-saeng) issued a statement on the 1st strongly urging the discussion on maintaining Air Busan, a regional hub airline.

This statement contains a strong message from the local business community calling for a proactive change in stance from the Korea Development Bank, Ministry of Land, Infrastructure and Transport, and Korean Air, who have consistently responded with indifference and insincerity to the local community's demands to preserve the Busan hub airline during the four-year merger approval period following the European Commission's final approval of the merger between Korean Air and Asiana Airlines on the 28th. It specifically urges a reconsideration regarding the separate sale of Air Busan.

The local business community has strongly demanded the separate sale of Air Busan as a clear alternative to maintaining the hub airline, especially since the Korea Development Bank and the Ministry of Land, Infrastructure and Transport clearly stated at the time of announcing the merger of Korean Air and Asiana Airlines that the headquarters of the integrated LCC would be located in the region. However, Korean Air Chairman Cho Won-tae later completely denied this.

According to the statement, the Korea Development Bank and the Ministry of Land, Infrastructure and Transport ignored local demands during the merger review process, citing that the separate sale of Air Busan could affect the approval of the merger between the two airlines. Recently, as the approval neared, they reversed their position, stating that the separate sale of Air Busan is a matter for the company to decide independently, which was strongly criticized.

Since the merger of the two airlines is a result of policy decisions centered on the Korea Development Bank, the statement argues that decisions related to the integration of subsidiaries such as Air Busan, Jin Air, and Air Seoul should not be left to individual companies but require policy decisions that consider the heavy responsibility of their public role as national key industries.

The local business community strongly urged the Korea Development Bank and the Ministry of Land, Infrastructure and Transport to promptly establish a forum involving all stakeholders, including the Korea Development Bank, Ministry of Land, Infrastructure and Transport, Korean Air, the local business community, and Busan City, as they clearly promised to discuss Air Busan-related matters after the merger approval, and to accept the region's demands for maintaining the Busan hub airline with a proactive change in stance.

Chairman Yang Jae-saeng of the Busan Chamber of Commerce and Industry emphasized, “Air Busan is a proud corporate asset of Busan, nurtured with the affection and interest of local businesses and Busan citizens,” and stressed, “If Busan loses its hub airline due to the government's flawed industrial policy, it will seriously harm not only the activation of the Gadeokdo New Airport, scheduled to open in 2029, but also the public sentiment in Busan. Therefore, active policy consideration and support from the government are urgently needed.”

Busan Chamber of Commerce and Industry.

This content was produced with the assistance of AI translation services.