[Edaily Reporter Ham Ji-Hyun ] The DaewooEngineering&Construction(047040) consortium announced on the 10th that it has begun full-scale work on the detailed design for the site preparation project for the Gadeokdo New Airport. The consortium explained that while the government plans to address previously raised concerns about rising construction costs through legislative amendments, it has also promised to discuss support measures to ensure that the contractor does not suffer any disadvantages even if these amendments do not proceed smoothly.

According to DaewooEngineering&Construction, the Ministry of Land, Infrastructure and Transport sent an official letter to the CEO of DaewooEngineering&Construction on the 3rd, requesting the commencement of detailed design work for the Gadeokdo New Airport site development project. The government and the DaewooEngineering&Construction consortium plan to consult closely during the design period to ensure that subsequent procedures proceed without a hitch, in line with the goal of opening the airport in 2035.

The DaewooEngineering&Construction consortium explained that the commencement of detailed design reflects a shared understanding and commitment with the government to proceed with the overall project schedule—including the 2035 opening—without delay.

DaewooEngineering&Construction stated that the Ministry of Land, Infrastructure and Transport acknowledged, via an official letter, that the sharp rise in construction costs due to the fallout from the war in the Middle East constitutes a force majeure event and that the estimated increase in construction costs exceeds what the contractor can reasonably bear.

Accordingly, the government has agreed to consult with fiscal authorities to promptly propose an amendment to the Gadeokdo New Airport Act and for relevant ministries to cooperate jointly to secure its passage through the National Assembly. Regarding the legislative uncertainty expressed by some members of the construction consortium, MOLIT announced that even if parliamentary deliberations are delayed or the bill is withdrawn, the government plans to devise measures to reflect the increase in construction costs.

Furthermore, the government stated that, based on trust in its policies, it will actively take necessary measures—such as holding discussions to provide financial support for design costs—to ensure that construction companies commencing detailed design work do not suffer any disadvantages.

An official from DaewooEngineering&Construction stated, “The consortium’s commencement of detailed design is a positive signal that the Gadeokdo New Airport construction project—set to become the gateway airport for southern South Korea—has overcome domestic and international economic uncertainties and entered the full-scale implementation phase.” The official added, “Given the combination of the government’s proactive support and the contractors’ expertise, we expect that main construction will commence on schedule following the 180-day detailed design phase.”