Gov't to start selling Incheon airport stakes in 2010

SEOUL, Oct. 10 (Yonhap) -- The government said Friday it will begin to sell stakes of Incheon International Airport to investors around 2010.

The Ministry of Land, Transport and Maritime Affairs said that of the 49 percent stake that will be sold on the market, a maximum of 15 percent will allocated "strategically" to a foreign company that specializes in the management of airports.
The remaining shares will then be sold off to private and institutional
investors. Seoul will seek consultation services before beginning sales of the
airport, which it says is making profit and has been rated as one of the best
terminals in the world.
It may take up to six months to conduct due diligence on assets and conduct a
review of management performance, the government said.
After this process is completed, Seoul will employ a sales management company to
be responsible for selecting the best possible time and method to sell the
state-controlled shares and list the company on the local bourse.
"At the earliest, actual sales will likely take place from 2010 onwards," a
ministry source said.
The ministry said that it is necessary to pick a strategic partner to help
transform Incheon into a truly international hub for air traffic.
Most of the traffic is currently comprised of South Korean nationals and
foreigners visiting the country. The percentage of transfer flights is very small
compared to other Asian airports, such as those servicing Hong Kong and
Singapore.
Related to the decision to sell the government's holdings, Vice Finance Minister
Bae Kook-hwan stressed that because the government will retain a 51 percent share
in the airport, there will be no move to raise service charges.
He added that what South Korea wants is to gain advanced insight on how to run an
airport and generate funds that can facilitate an ambitious expansion plan.
yonngong@yna.co.kr
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