Hyundai E&C has called together all 25 construction companies belonging to the consortium for the 'Gadeokdo New Airport' site construction. This meeting is to explain the background of their official absence from the consortium and the subsequent procedures. The site construction for the 'Gadeokdo New Airport' has become difficult to progress for the time being as the lead contractor, Hyundai E&C, has stepped back.
According to the construction industry on the 4th, the construction companies in the consortium for the 'Gadeokdo New Airport' site construction are scheduled to gather at the consortium's joint office in Jongno, Seoul, at 2 p.m. The meeting is organized by Hyundai E&C. Local construction companies from Busan will also participate in this gathering. Hyundai E&C previously held an explanatory meeting with the consortium companies excluding Busan construction companies on the 29th of last month.
A representative from Hyundai E&C said, "This is a meeting to explain the remaining business procedures," adding, "We decided to meet at the office near Jongno where we have worked so far."
In the consortium, the lead contractors include Hyundai E&C (25.5% equity), Daewoo E&C (18%), and POSCO E&C (13.5%), all of which are within the top 10 construction firms for construction evaluation. Additionally, Kumho Engineering & Construction, KOLON GLOBAL, Dongbu Corporation, KCC E&C, Ssangyong Engineering & Construction, BS Hanyang, and Hyosung Heavy Industries each hold 4% equity. The remaining equity of 11% is held by construction companies from Busan.
With the withdrawal of Hyundai E&C, the lead contractor for the consortium, the Gadeokdo New Airport site development is expected to be difficult to proceed for the time being. However, as President Lee Jae-myung promised the construction of the Gadeokdo New Airport ahead of the presidential election, it is anticipated that the construction will resume after the formation of the new cabinet.
A representative from a participating construction company in the consortium said, "It is rare for a lead contractor to withdraw from a consortium project, so we are currently in a wait-and-see position," and added, "We need to see what guidelines the Ministry of Land, Infrastructure and Transport will bring."
The construction industry is discussing various scenarios. There is an opinion that, for the swift progress of the construction, construction companies in the consortium might share the equity previously held by Hyundai E&C. Daewoo E&C is the second largest by equity.
The possibility that the Ministry of Land, Infrastructure and Transport will issue a new public offering cannot be completely ruled out. If the new government pushes forward, several conditions may change, allowing Hyundai E&C to re-participate, or companies like Samsung C&T and GS Engineering and Construction, which had rejected participation, might reconsider.
Another representative from a participating construction company in the consortium remarked, "There are divided opinions among the member companies about whether we can proceed without Hyundai E&C," and added, "There are also rumors that Daewoo E&C might step forward."
Meanwhile, the Hyundai E&C consortium submitted the 'Basic Design Plan' for the Gadeokdo New Airport to the Ministry of Land, Infrastructure and Transport in April, stating that the planned opening in 2029 is not feasible. They pointed out that it would be difficult to ensure safety and quality within the proposed construction period of 84 months and suggested '108 months' as the new construction period. This led to conflicts with the Ministry, Busan City, and civic groups, and on the 30th of last month, Hyundai E&C announced it would cease negotiations with the Ministry and would withdraw from the project.