Hyundai E&C to withdraw from airport project, citing difficulties in meeting gov’t deadline

Hyundai Engineering & Construction (Hyundai E&C) Co. said Friday it will withdraw from a national project to build a new international airport in South Korea’s southeastern port city of Busan, citing difficulties in meeting the completion deadline sought by the government.

“It is impossible to ensure a safe construction period despite our efforts to prioritize safety and quality,” the company said, citing its reason for withdrawing from the airport project on Busan’s Gadeok Island. “We cannot accept demands to reduce the timeline to a level that fails to guarantee the airport’s safety, driven by political and regional interests.”

The South Korean government launched the 13 trillion-won (US$9.4 billion) project in 2022 to build a new floating airport on Gadeok Island to handle growing air traffic demand in the region and replace the overburdened Gimhae International Airport. The new airport was planned to open in 2035.

Following four failed tenders, the government signed a private contract last year with a consortium led by Hyundai E&C.

Since then, Hyundai E&C said it has asked the government to extend the construction period for about two years after conducting a thorough technical review.

The government had required the project to be completed in 85 months, while Hyundai E&C had proposed 108 months.

Hyundai E&C emphasized that only the company is withdrawing, not the entire consortium.