With Hyundai E&C's announcement of non-participation, the construction of the Gadeokdo New Airport site preparation project is facing a re-bid, and Lotte Engineering & Construction has expressed a desire to participate. As the Ministry of Land, Infrastructure and Transport has shown signs of potentially easing bid conditions regarding construction duration and costs, large construction companies ranked in the top 10 in construction capability evaluation have begun to internally review their participation in the project.
According to the construction industry on the 24th, Lotte Engineering & Construction is actively considering participation in the Gadeokdo New Airport site preparation project. A Lotte Engineering & Construction official noted, "While a decision on consortium participation has not been made, it is true that it is under review."
However, representatives from several existing consortium participating construction companies believe that Lotte Engineering & Construction's inclusion is likely. One representative said, "It is my understanding that Lotte Engineering & Construction has decided internally to take a positive stance on project participation, anticipating that conditions will be eased."
In addition to Lotte Engineering & Construction, it has been confirmed that other large construction firms are also considering participation in the site preparation project consortium. DL E&C has expressed its willingness to participate if the Ministry proceeds with re-bidding by segments. They indicated that they might consider joining if risks such as stability and economic aspects were reduced.
Hanwha's construction division, ranked 11th in construction capability evaluation (as of 2024), is also actively reviewing participation internally. It has been reported that in addition to existing companies that initially showed no interest in participating, there are currently additional large construction firms that have begun to evaluate the project's feasibility internally. However, it seems that among mid-sized construction firms, there is a possibility of following Hyundai E&C's judgment and withdrawing from the consortium.
This movement has gained momentum following the Ministry of Land, Infrastructure and Transport's meeting with eight construction companies ranked in the top 10 in construction capability evaluation last week. It has been confirmed that the Ministry organized this meeting to gather opinions from the construction industry ahead of the re-bid. Expectations have formed that main conditions, including the existing construction duration of 84 months, will be eased.
Kim Jeong-hee, head of the Gadeokdo New Airport Construction Promotion Team at the Ministry of Land, Infrastructure and Transport, stated, "We had a session to gather opinions from the top 10 construction companies," adding, "If construction companies come forward with evidence requesting the easing of key conditions, we can consult with related agencies."
However, if the bid conditions are not eased, there is a significant possibility that consortium construction firms will withdraw en masse. A representative from a large construction firm remarked, "Even the 108 months based on Hyundai E&C's basic design plan cannot be guaranteed with 100% certainty," adding, "To prevent ground subsidence after the new airport's completion, the construction period must be secured. "
A new consortium participating in the re-bid is expected to be led by Daewoo E&C. Daewoo E&C held the second-largest equity in the existing consortium, at 18%, following Hyundai E&C's 25.5%. Their extensive experience in marine civil engineering projects near Busan, including the Gugeum Bridge, and their current involvement in a large port construction project in Iraq were among the considerations.
POSCO E&C held 13.5% equity. Eight mid-sized construction firms, including Kumho Engineering & Construction, KOLON GLOBAL, Dongbu Corporation, and Hyosung Heavy Industries, each held 4% equity. The remaining 11% of equity was held by construction firms located in the Busan region.
Meanwhile, the existing Hyundai E&C consortium submitted the ‘Gadeokdo New Airport Basic Design Plan’ to the Ministry in April, stating that a 2029 opening is not possible. They concluded that a construction period of '108 months' is needed, arguing that safety and quality assurance cannot be ensured within the timeline proposed by the Ministry (84 months). Following conflicts with the Ministry, Busan City, and civic groups over these concerns, Hyundai E&C announced on the 30th of last month that they would cease negotiations with the Ministry and would not participate in this project.