INCHEON — Yeongjong International City is set to become South Korea's core base for aircraft maintenance, repair and overhaul (MRO), a sector that has long relied heavily on overseas providers.
Incheon Metropolitan City and the Incheon Free Economic Zone Authority signed an investment and occupancy agreement on Sept. 30 at Songdo G-Tower for the creation of a Korean Air MRO cluster, joined by the Yeongjong District Office, Korea Land & Housing Corporation (LH), Incheon Metropolitan City Development Corporation (iH) and Korean Air (003490). The signing followed approval by the industrial siting review committee in May, settling each institution's role and the site preparation process and moving the project into full implementation.
Under the agreement, Korean Air will invest 150 billion won ($108 million) in a 50,692-square-meter site at the Yeongjong Aviation General Industrial Complex. The carrier plans to build advanced engine and component maintenance facilities and related infrastructure with a total floor area of 101,151 square meters. Construction is scheduled to begin in January 2029 and finish in December 2031. The complex will be linked to the existing engine test cell (ETC) in Unbuk-dong and to Incheon International Airport to maximize maintenance efficiency.
When the cluster begins operating in 2031, Korean Air's annual engine overhaul capacity will jump about 5.7-fold to 502 units from 88 at present. The project is expected to capture within the country the large maintenance costs that have flowed overseas and to strengthen the carrier's competitiveness in winning global orders. More than 2,000 aviation MRO specialists will be stationed at the site, creating quality jobs and reshaping Yeongjong's industrial base toward higher-value activity.
The six institutions and the company have set up a joint framework. They will move quickly on site preparation work, including road closures and the relocation of obstructions, and will sign a land sale contract within three months of the agreement date. Incheon Metropolitan City and the economic zone authority will oversee permits and administrative procedures, while the Yeongjong District Office will handle local workforce training and recruitment links.
"This agreement is a decisive turning point that puts the Korean Air MRO cluster firmly on track," Incheon Mayor Park Chan-dae said. "We will spare no administrative support so that Incheon can emerge as the top base for South Korea's aircraft maintenance industry."
