Incheon Airport to be put on sale > 영어토론방

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Since starting operations in 2001, Incheon International Airport has established itself among Asia's most popular gateways, well-reviewed by travelers for its spacious environment, navigational ease and breadth of retail and dining options.

So critics are questioning why the government seems so eager to move the airport on, even at the risk of selling low.

As part of its plans to advance state-run enterprises, the Lee Myung-bak government is moving to privatize the Incheon hub by putting up for sale 49 percent of its stake.

However, opposition lawmakers are concerned that the government, desperate for quick money to reduce its massive budget deficit, is showing a willingness to accept 50 cents on the dollar for the country's most profitable airport.

In announcing its budget for next year, the Ministry of Land, Transport and Maritime Affairs said it expects to earn around 590.9 billion won (about $504 million) by selling a portion of its shares in the airport.

Answering Democratic Party lawmaker Cho Jeong-sik during the recent National Assembly audit, ministry officials said that the figure accounts for 16.3 percent of the stake, priced at 5,000 won per share.

The revelation caused a stir as critics insist that the airport could be worth a lot more.

"Expecting to get 590.9 billion won from selling 16 percent of the airport, which accounts for one-third of the 49-percent stake put up for grabs, means that the government is claiming the airport to be worth just around 3.5 trillion won," Cho said.

"This is even lower than Incheon Airport's book value of 4.1 trillion won, and not even half of the 7.7 trillion won the airport is worth when combing net asset value with officially assessed land prices," he said, claiming that the airport's stocks should be worth around 10,610 won per share when factoring in land prices.

The transportation ministry said that the 590.9 billion won was merely an "estimated" number, based on a calculation by the Ministry of Strategy and Finance in predicting next year's fiscal income.

"The actual sales price will be dependent on the timing and method of the sale, as well as the amount of shares traded. We can ensure that the shares will not be sold at a lower price than their face value," said a ministry official.

However, Cho claims that the government's logic for privatizing the airport, which was to improve its competiveness and secure investment for a 9 trillion won redevelopment plan that continues through 2015, is looking increasingly less convincing.

"The claims about competiveness and securing investment for the three-phase redevelopment plan are being exposed as lies," Cho said.

"After cutting taxes on high-income households and blowing an enormous amount of money to renew the country's four major rivers, the government is desperately trying to sell the airport to help mend its massive budget hole."

Although the government has been eager to privatize poorly managed state-run enterprises to improve their competiveness, there have been debates over whether the airport qualifies as one of them.

Incheon Airport saw its net income increase to 207.1 billion won in 2007 from 123.9 billion won in 2005, as it continues to grow as one of the world's largest and busiest hubs.

Since 2005, it has been consecutively rated as the best airport in the world by the Airports Council International, and received the full 5-star ranking by Skytrax, a recognition shared only by the Hong Kong International Airport and Singapore's Changi Airport.

thkim@koreatimes.co.kr

Question
1. Have ever heard about ‘Incheon international ariport privatization'?
If you heard about it, How much do you know about the issue?
2. If you did not heard about this topic, Who shall be responsible for it?
( public ignorance or goverment's promoting business without permission )
3. Discuss about this topic. (especially, agree or disagree side)

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