Page 46 - 인천국제공항 4단계 건설사업 건설지 [브랜드북 영문]

Overcoming On December 20, 2018, with the ground-breaking ceremony for Runway 4, Phase 4 construction

the COVID-19 officially began. However, the COVID-19 pandemic soon followed, dealing a severe blow to the
project. With lockdown measures in place worldwide, aircraft that should have been flying filled
pandemic Incheon Airport’s aprons instead. As flights were halted, airport operations effectively came to a

standstill, and businesses within the airport were forced to close.
Passenger traffic at Incheon Airport, which exceeded 70 million in 2019, plummeted to around
3 million by 2021—a decline of over 95%. With travelers absent, the airport presented a

desolate scene, with more staff than passengers. The drop in air travel severely impacted IIAC’s
revenue and operating profit. Sales, which had reached KRW 2.7 trillion in 2019, fell sharply
to KRW 900 billion in 2021. For the first time since its opening, IIAC reported losses for three
consecutive years, with accumulated losses reaching approximately KRW 1.7 trillion after 2020.

Compounding these challenges, the Ukraine war drove up raw material prices and disrupted
supply chains, putting the Phase 4 construction project at risk. IIAC was facing the greatest crisis
since its founding.
Despite the bleak outlook and uncertainty over when the pandemic would end, IIAC chose not to

implement restructuring, even while suffering losses. Determined to secure a competitive edge
once air travel demand returned, IIAC proactively secured materials and focused on timely facility
expansions. It also introduced rigorous hygiene protocols to position itself as a "COVID-free
airport" and ensured sufficient staffing to respond to the pandemic. Employing a counterintuitive

strategy, IIAC leveraged the reduced traffic to upgrade facilities along key pathways and pressed
ahead with Phase 4 construction without interruption.
Nevertheless, IIAC’s debt ratio surged from 32% to 92%, a significant increase for what had been
an exceptionally strong corporation.

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