In the National Assembly: "Difficult to Proceed with Only Local and Private Funding"
Collapse of Funding Base Due to Low Growth and Real Estate Slump
Upfront Investment and Compensation Variables Raise Concerns Over Ongoing Conflict
"State-led Approach Is the Only Solution"

In the National Assembly, concerns have been raised that the current donation-for-compensation method for relocating the Gwangju military airport has reached structural limitations. As the existing approach, which relies on local government finances and private investment, makes it difficult to carry out the relocation project, there is renewed demand for the central government to take the lead as the main implementing body.

Pilots of the 1st Fighter Wing in Gwangsan-gu, Gwangju, are landing after completing flight training with fighter jets. Provided by the 1st Fighter Wing

Pilots of the 1st Fighter Wing in Gwangsan-gu, Gwangju, are landing after completing flight training with fighter jets. Provided by the 1st Fighter Wing

View original image

Joo Ho-young, Deputy Speaker of the National Assembly from the People Power Party, pointed out at the "Emergency Discussion on the Amendment of the Special Act for Government-led Military Airport Relocation" held on the 24th that the donation-for-compensation method "places an excessive burden on local governments and prolongs the project." He argued that the state must not evade responsibility, especially given the difficulty of securing funding amid a real estate downturn.


The event centered on a presentation by Son Seung-kwang, Honorary Professor at Dongshin University, and was co-hosted by Deputy Speaker Joo and Assemblyman Min Hyung-bae (Gwangsan-eul, Gwangju). Attendees commonly pointed out that the existing method is unworkable and that the financial burden increases as project delays accumulate.


Assemblyman Min diagnosed the current structure as "unsustainable for private investors," emphasizing that the Ministry of National Defense should become the main implementing body and that the state should provide practical support through budget subsidies, loans, and free transfer of the existing site.


Son Seung-kwang, the presenter and Honorary Professor, specifically explained the structural limitations of the donation-for-compensation method. He noted that, unlike the past era of high growth and rising real estate prices, it is now difficult to expect development profits due to prolonged low growth, high interest rates, and a stagnant real estate market. He added, "All three pillars-local government finances, private investment, and development profits-have collapsed," and stated that, with soaring costs and growing regional conflict as the project is delayed, it will be impossible to proceed without intervention at the national level.


Han Sang-won, Chairman of the Gwangju Chamber of Commerce and Industry, cited the burden of upfront investment and the ambiguity of responsibility as key problems. He said, "The current method requires building the new airport first and then developing the old site to secure profits, making more than 10 years of upfront investment inevitable." He stressed that, given the many variables such as compensation, environmental assessments, and resident opposition, the state must clarify its responsibility. He further emphasized that the relocation of military facilities should be the responsibility of the central government and called for a shift to a national budget project, as was done with the new airport in Gadeokdo.



Ki Woo-sik, Secretary-General of the Gwangju Civic Organizations Council, pointed to the cases of Daegu and North Gyeongsang Province to highlight the low feasibility of the donation-for-compensation method. He stated, "Due to limitations in securing project funds, the relocation of the Daegu and North Gyeongsang military airports has effectively been suspended." He added that the 1 trillion won proposal made by Gwangju City to Muan County was an unavoidable choice in light of structural issues, but cannot be a fundamental solution. He emphasized, "Since military airports are national strategic assets, a state-led relocation is the only realistic solution."


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

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

Today’s Briefing