Consortium with Hungkuk Life picked for sale of Cheongju Airport
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A consortium led by Hungkuk Life Insurance has been named as a preferred bidder for Cheongju International Airport, the first attempt to privatize one of South Korea's regional airports.
State-run Korea Airport Corporation which operates Gimpo Airport and 13 other airports across the nation Wednesday signed a preliminary agreement with Cheongju Airport Management.
The airport has suffered losses of 4.6 billion won ($3.96 million) a year and was included in a government plan for privatization of public firms in October 2008.
Cheongju Airport Management consists of Hungkuk Life, KAG and ADC&HAS.
Korea Airport Corporation will closely review a business plan submitted by the consortium before negotiations and a final deal.
Under preliminary talks, the consortium plans to pay Korea Airport Corporation 25.5 billion won in advance in return for the rights to operate the airport for 30 years.
[Written by Hong-gu Ji / edited by Soyoung Chung]
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