Bank Loan Support with an Annual Interest Rate of 3.5%… Overcoming the Limitations of the Asset Donation Method
On the 29th, North Gyeongsang Province held an official briefing on ‘The Journey of North Gyeongsang in 2025 and Directions for 2026’ at the Gyeongsangbuk-do Provincial Office, presided over by Governor Lee Cheol-woo.
In this briefing, Governor Lee Cheol-woo officially proposed that Daegu Metropolitan City and North Gyeongsang Province each raise 1 trillion won, totaling 2 trillion won in financial borrowing, to commence the construction of the Daegu-Gyeongbuk New Airport early. This plan involves bank loans under the condition of a 3.5% annual interest rate, along with issuing local bonds.
Governor Lee stated, “The local governments will proactively engage in financial borrowing to allow contractors to begin airport construction promptly,” and announced immediate commencement of working-level discussions with Daegu City.
This proposal is based on the necessity for early construction of the Daegu-Gyeongbuk New Airport and securing core growth drivers for the North Gyeongsang region. Amid ongoing controversies over the relocation of military airports and budget securing, there is a growing consensus that significant infrastructure projects that drive regional economic revitalization should not be delayed any further.
Governor Lee proposed a ‘local government-led proactive investment approach,’ where North Gyeongsang Province and Daegu City each bear 1 trillion won of financial borrowing, such as issuing local bonds, and expressed a strong will to boldly push through the stagnated new airport project. He specifically mentioned the need for immediate working-level discussions with Daegu City for a swift process.
Governor Lee has repeatedly emphasized that regarding the Daegu-Gyeongbuk New Airport project, “It’s as if the budget is already secured.” However, due to the intrinsic nature of the asset donation method, construction has not commenced immediately due to the structural limitation where development and sale proceeds of the military airport relocation site must precede. He has continuously stated that local governments must take a more active role in overcoming this.
During the briefing, in response to media inquiries, Governor Lee asserted, “A total budget of 12 trillion won has been secured through the asset donation method,” and emphasized that project delays should not be justified by unallocated budget issues. He further explained, “North Gyeongsang Province and Daegu City have publicly declared their strong execution will for early commencement by directly sharing financial risks.”
If this plan materializes, it is expected to significantly reduce uncertainties that may arise in the process of securing additional national funds for the Daegu-Gyeongbuk New Airport construction project. Furthermore, the early commencement is anticipated to expedite the ripple effects of regional economic revitalization, job creation, and enhancement of logistics and transportation competitiveness resulting from the establishment of large-scale infrastructure.
North Gyeongsang Province plans to continue swift discussions with Daegu Metropolitan City and maintain ongoing cooperation to ensure the Daegu-Gyeongbuk New Airport construction project is carried out without a hitch, in close alignment with national balanced development policies and metropolitan transportation network expansion strategies.