Incheon Airport’s 2024 Production Inducement Effect Reaches 123 Trillion Won, Equivalent to 4.8% of Nominal GDP

Approximately 660,000 Jobs Created

Driving 41% of Incheon’s Regional GDP

It has been revealed that Incheon International Airport generated a massive production inducement effect of over 120 trillion won for the national economy in 2024.

A panoramic view of Incheon Airport. Incheon International Airport Corporation

According to Incheon International Airport Corporation on May 20, an analysis of the airport’s economic ripple effects as of 2024 shows that Incheon Airport contributed to the national economy with a total production inducement effect of 123 trillion won, a total value-added inducement effect of approximately 51 trillion won, and a total employment inducement effect of about 660,000 people.

These figures include both the direct economic effects generated by Incheon Airport and the effects from tourism-related industries. The total value-added inducement effect, including tourism-linked industries, is equivalent to about 2% of the nation’s nominal gross domestic product (GDP), while the total production inducement effect accounts for roughly 4.8% of nominal GDP. When focusing exclusively on industries directly connected to the airport, the production inducement effect amounts to around 67 trillion won, the value-added inducement effect to about 26 trillion won, and the employment inducement effect to approximately 230,000 people.

The impact on the regional economy was also found to be substantial. The analysis of the ripple effects on the Incheon region indicates that the total production inducement effect reached approximately 51 trillion won, representing about 41% of Incheon’s gross regional domestic product (GRDP). The total value-added inducement effect was about 19 trillion won, or roughly 16% of Incheon’s nominal GRDP, and the total employment inducement effect amounted to about 210,000 people.

By industry segment, the economic contributions were especially high in air transport services, airport commercial facilities operators, and tourism-linked industries. The air transport services sector in the Incheon region generated a production inducement effect of about 31 trillion won, a value-added inducement effect of approximately 11 trillion won, and an employment inducement effect of around 77,000 people. Among airport commercial facilities, the duty-free sector alone contributed a production inducement effect of about 2.6 trillion won and a value-added inducement effect of about 1.4 trillion won in the Incheon region. Due to the rebound in foreign visitors to Korea, the tourism-linked industry’s production inducement effect on the national economy was about 39 trillion won, with an employment inducement effect of around 330,000 people.

This research was estimated using a model reconstructed by the corporation’s Airport Industry Technology Research Institute based on the Bank of Korea’s input-output tables. The corporation plans to announce the analysis results of the airport’s economic ripple effects for 2025 in the second half of this year, as soon as the relevant statistics are finalized.

Beomho Kim, acting president of Incheon International Airport Corporation, stated, "Through this economic impact analysis, we have confirmed that Incheon Airport has established itself as a key growth engine driving Korea’s economy and regional co-prosperity, extending beyond its core aviation transport function," adding, "Going forward, while remaining faithful to our primary role as an airport, we will expand into new growth businesses such as developing the airport economic zone and exporting the K-Airport model, thereby creating quality jobs and strengthening national competitiveness."

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