Ko re a n E c o no my a nd B us ine s s2012 S umme r S c ho o lP ro fe s s o r S a ng Wuk A hn       Priva tiz a tio n o f...
Ta b le o f C o nte ntsI.  Intro d uc tio nII. Inc he o n Inte rna tio na l A irp o rtIII.Priva tiz a tio n O ve rvie wIV....
[ Inc he o n A irp o rt P riva tiz a tio n ]Ⅰ . Intro d uc tio n
I. - 1. Re le va nc e to O ur                   S tud ie s• C u rre n t is s u e in Ko re an e c o n o m y:  “Ru n n in g ...
[ Inc he o n A irp o rt P riva tiz a tio n ]II. Inc he o n Inte rna tio na lA irp o rt
II. - 1. B a c kg ro und o f                 Inc he o n A irp o rt• Lo c ate d 48 km (30 m i) we s t o f S e o u l• Artifi...
II. - 2. P ha s e s o f C o ns truc tio n• Ph as e 1 : 30 m illio n p as s e n g e rs , 1 .7 m illio n m e tric  to n s o ...
II. - 3. O p e ra tio ns a nd                  A c c o la d e s• Rate d as th e “B e s t Airp o rt Wo rld wid e ” b y Airp...
[ Inc he o n A irp o rt P riva tiz a tio n ]III. P riva tiz a tio n O ve rvie w
III. - 1. P rinc ip le s o f                  P riva tiz a tio n• D e fin itio n o f “p rivatizatio n ”- tran s fe r o f o...
III. - 2. F o rms o f O wne rs hip a nd        Ma na g e me nt o f A irp o rts• G o ve rn m e n t- o wn e d ; o p e rate d...
III. - 3. G e ne ra l A d va nta g e s a nd D is a d va nta g e s o f P riva tiz a tio n• In c re as e th e ab ility to ra...
[ Inc he o n A irp o rt P riva tiz a tio n ]Ⅳ . Priva tiz a tio n P ro c e s s o f    Inc he o n A irp o rt
Ⅳ - 1. B a c kg ro und“ L o w Hub iniz a tio n “
Ⅳ - 2. P urp o s e
Ⅳ - 2. P urp o s e1. Intro d uc e A d va nc e d Ma na g e me nt  Te c hniq ue s    - Inc re a s e E ffic ie nc y a nd S e ...
Ⅳ - 2. P urp o s e2. F ina nc ia l Inflo ws a nd S up p o rts
Ⅳ - 2. P urp o s e2. F ina nc ia l Inflo ws a nd S up p o rts  - A irp o rt E xp a ns io n P ro je c t ( 2017)      : 34 B...
Ⅳ - 3. The P ro g re s s o f                    P riva tiz a tio n• Inc he o n A irp o rt o p e ne d a t 2001• In 2002, th...
Ⅳ - 4. P ro s a nd C o nsPro s1. G o ve rnme nt is C a re fully A p p ro a c hing !2. G lo b a l Tre nd o f A irp o rt P r...
Ⅳ - 4. P ro s a nd C o nsC o ns 1. A lre a d y a G o ld e n G o o s e ! 2. P o s s ib le C ha ng e s in S e rvic e s ( e v...
Ⅳ - 5. Is s ue s• Is s ue 1 : Why S e ll a n A lre a d y- Pro fita b le  E nte rp ris e ?
Ⅳ - 5. Is s ue s• Is s ue 2 : Will We L o s e C o ntro l a nd Po we r?
Ⅳ - 5. Is s ue s• Is s ue 3 : Is it a Po litic a l S c a nd a l ?
Ⅳ - 5. Is s ue s• Is s ue 3 : Is it a Po litic a l S c a nd a l ?
[ Inc he o n A irp o rt P riva tiz a tio n ]Ⅴ . C a s e S tud y
Ⅴ - 1. F a ilure C a s e – He a thro w                      A irp o rt O ve rvie wO wne r         B ritis h A irp o rts  ...
Ⅴ - 1. F a ilure C a s e – He a thro w                        A irp o rtThe firs t ma jo r A irp o rt P riva tiz a tio n  ...
Ⅴ - 1. F a ilure C a s e – He a thro w                       A irp o rt B ritis h A irp o rt A utho rity A nnua l Re s ul...
Ⅴ - 1. F a ilure C a s e – He a thro w                     A irp o rt A fte r Priva tiz a tio n o f He a thro w A irp o r...
Ⅴ - 1. F a ilure C a s e – He a thro w                     A irp o rt A fte r Priva tiz a tio n o f He a thro w A irp o r...
Ⅴ - 1. F a ilure C a s e – He a thro w                             A irp o rt A fte r P riva tiz a tio n o f He a thro w A...
Ⅴ - 2. S uc c e s s ful C a s e – C hub u                    A irp o rt   1 ) With m u c h lo b b yin g b y lo c alb u s i...
Ⅴ - 2. S uc c e s s ful C a s e – C hub u                      A irp o rt Re a s o ns fo r s uc c e s s •L o c a tio n   ...
Ⅴ - 2. S uc c e s s ful C a s e – C hub u                     A irp o rt Re a s o ns fo r s uc c e s s    ( 2) O wne rs h...
Ⅴ - 2. S uc c e s s ful C a s e – C hub u                     A irp o rt Re a s o ns fo r s uc c e s s ( 4) A wa rd s - S...
[ Inc he o n A irp o rt P riva tiz a tio n ]Ⅵ . C o nc lus io n
Ⅵ . C o nc lus io n    Privatization has both advantages and disadvantages as presented earlier.For Incheon airport , we h...
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Incheon airport presentation 이것이 완전 최종본이다.

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Transcript of "Incheon airport presentation 이것이 완전 최종본이다."

  1. 1. Ko re a n E c o no my a nd B us ine s s2012 S umme r S c ho o lP ro fe s s o r S a ng Wuk A hn Priva tiz a tio n o f Inc he o n A irp o rt 2007033229 D o ng G yu L e e 2009019083 S o na m D he nd up 2011032638 S ue P a rk
  2. 2. Ta b le o f C o nte ntsI. Intro d uc tio nII. Inc he o n Inte rna tio na l A irp o rtIII.Priva tiz a tio n O ve rvie wIV. Priva tiz a tio n Pro c e s s o f Inc he o n A irp o rtV. C a s e S tud yVI. C o nc lus io n
  3. 3. [ Inc he o n A irp o rt P riva tiz a tio n ]Ⅰ . Intro d uc tio n
  4. 4. I. - 1. Re le va nc e to O ur S tud ie s• C u rre n t is s u e in Ko re an e c o n o m y: “Ru n n in g th e g o ve rn m e n t is like ru n n in g a re lay. Th e c u rre n t rac e r h as to m ake a las t s p u rt to p as s th e b ato n to th e n e xt ru n n e r,” - F in an c e Min is te r B ah k Jae - wan• In c h e o n Airp o rt is o n e o f Ko re a’s m o s t c o m p e titive c o rp o ratio n s , re ve n u e s o f 1 .28 trillio n wo n an d a n e t p ro fit o f 324 b illio n wo n in 201 1• H o w p rivatizatio n affe c ts d e ve lo p e d e c o n o m ie s• Im p lic atio n s b e yo n d e c o n o m y
  5. 5. [ Inc he o n A irp o rt P riva tiz a tio n ]II. Inc he o n Inte rna tio na lA irp o rt
  6. 6. II. - 1. B a c kg ro und o f Inc he o n A irp o rt• Lo c ate d 48 km (30 m i) we s t o f S e o u l• Artific ially c re ate d lan d b e twe e n Ye o n g j n g an d o Yo n g yu is lan d s• In c re as e d in te rn atio n al air traffic afte r S e o u l O lym p ic s 1 988• C o n s tru c tio n b e g an in 1 992 to re d u c e lo ad o n G im p o In te rn atio n al Airp o rt• O ffic ially o p e n e d in Marc h 2001• O n e o f to p te n b u s ie s t airp o rts in th e wo rld with n e arly 35 m illio n in te rn atio n al p as s e n g e rs in 201 1
  7. 7. II. - 2. P ha s e s o f C o ns truc tio n• Ph as e 1 : 30 m illio n p as s e n g e rs , 1 .7 m illio n m e tric to n s o f c arg o p e r ye ar• Ph as e 2: re ad y b y B e ij g O lym p ic s 2008 in - 44 m illio n p as s e n g e rs , 4.5 m illio n m e tric to n s o f c arg o p e r ye ar• Ph as e 3: p lan s to in ve s t 4 trillio n wo n b y 201 7 - 62 m illio n p as s e n g e rs , 5.8 m illio n m e tric to n s o f c arg o p e r ye ar• Ph as e 4: fin al s tag e to b e c o m p le te d in 2020 - 1 00 m illio n p as s e n g e rs , 7 m illio n m e tric to n s o f c arg o p e r ye ar
  8. 8. II. - 3. O p e ra tio ns a nd A c c o la d e s• Rate d as th e “B e s t Airp o rt Wo rld wid e ” b y Airp o rts C o u n c il In te rn atio n al in 2005- 201 2• In c lu d e s a g o lf c o u rs e , s p a an d s au n a, p rivate s le e p in g ro o m s , ic e s katin g rin k, c as in o , in d o o r g ard e n s , Mu s e u m o f Ko re an C u ltu re , p raye r ro o m s• 1 6 m in u te s fo r d e p artu re an d 1 2 m in u te s fo r arrival p ro c e s s , far m o re e ffic ie n t th an th e g lo b al s tan d ard s o f 60 an d 45 m in u te s re s p e c tive ly• N e t p ro fit fo r e ig h t c o n s e c u tive ye ars• C u rre n t wo rth o f 7.3 trillio n wo n , e xp e c te d to ro u g h ly d o u b le in valu e with c o m p le tio n o f s e c o n d te rm in al
  9. 9. [ Inc he o n A irp o rt P riva tiz a tio n ]III. P riva tiz a tio n O ve rvie w
  10. 10. III. - 1. P rinc ip le s o f P riva tiz a tio n• D e fin itio n o f “p rivatizatio n ”- tran s fe r o f o wn e r- s h ip fro m th e p u b lic s e c to r (e .g ., lo c al, re g io n al, n atio n al g o ve rn m e n t) to th e p rivate s e c to r (e .g ., p rivate in ve s tm e n t an d /o r m an ag e m e n t g ro u p s )• Re ve rs e p ro c e s s is “n atio n alizatio n ”• Airp o rt p rivatizatio n c an take a wid e ran g e o f fo rm s (i.e , fro m p artially to fu lly p rivatize d e n titie s )• Ke y d is tin c tio n b e twe e n p rivatizatio n o f o wn e rs h ip (o wn e r) an d p rivatizatio n o f m an ag e m e n t (o p e rato r)
  11. 11. III. - 2. F o rms o f O wne rs hip a nd Ma na g e me nt o f A irp o rts• G o ve rn m e n t- o wn e d ; o p e rate d b y D e p artm e n t o r Ag e n c y o f n atio n al g o ve rn m e n t• G o ve rn m e n t- o wn e d ; o p e rate d an d m an ag e d b y a p rivate c o rp o ratio n• O p e rate d b y an in d e p e n d e n t Airp o rt Au th o rity, wh ic h is fu lly o wn e d b y g o ve rn m e n t• O p e rate d b y an in d e p e n d e n t Airp o rt Au th o rity, wh ic h is fu lly o wn e d b y g o ve rn m e n t, b u t with m in o rity p rivate s h are h o ld e rs (s o m e s h are s m ay b e p u b lic ly trad e d )• Private ly- o wn e d (fu lly o r in m aj rity, p o s s ib ly with s o m e o o r all s h are s p u b lic ly trad e d ); o p e rate d as in d e p e n d e n t airp o rt au th o rity
  12. 12. III. - 3. G e ne ra l A d va nta g e s a nd D is a d va nta g e s o f P riva tiz a tio n• In c re as e th e ab ility to rais e c ap ital fo r in fras tru c tu re d e ve lo p m e n t• G e n e rally as s o c iate d with o p e ratin g e ffic ie n c y im p ro ve m e n ts• H o we ve r, c o n flic tin g o b j c tive s b e twe e n e p u b lic g o o d an d p ro fit g e n e ratio n c an le ad to n atu ral m o n o p o lie s , c o rru p tio n , lac k o f ac c o u n tab ility, an d p o te n tial c u ts in s e rvic e s
  13. 13. [ Inc he o n A irp o rt P riva tiz a tio n ]Ⅳ . Priva tiz a tio n P ro c e s s o f Inc he o n A irp o rt
  14. 14. Ⅳ - 1. B a c kg ro und“ L o w Hub iniz a tio n “
  15. 15. Ⅳ - 2. P urp o s e
  16. 16. Ⅳ - 2. P urp o s e1. Intro d uc e A d va nc e d Ma na g e me nt Te c hniq ue s - Inc re a s e E ffic ie nc y a nd S e rvic e L e ve ls - G o ve rnme nt’ s P ub lic E nte rp ris e P riva tiz a tio n P ro je c t ( 2009) - Inte rna tio na l Tre nd to P riva tiz e A irp o rt S ys te ms
  17. 17. Ⅳ - 2. P urp o s e2. F ina nc ia l Inflo ws a nd S up p o rts
  18. 18. Ⅳ - 2. P urp o s e2. F ina nc ia l Inflo ws a nd S up p o rts - A irp o rt E xp a ns io n P ro je c t ( 2017) : 34 B illio n D o llars are n e e d e d : E xp an d Te rm in als an d Railro ad s : Rais e C arg o C ap ac ity u p to 5.8 m illio n to n s - C a p ita l Inflo ws thro ug h S ta ke S a le s - B uild ing a C ity Infra s truc ture Ne a r the Inc he o n A irp o rt
  19. 19. Ⅳ - 3. The P ro g re s s o f P riva tiz a tio n• Inc he o n A irp o rt o p e ne d a t 2001• In 2002, the ‘ D J g o ve rnme nt’ trie d to s e ll 51% o f its ’ s ta ke → F a ile d !• In 2007, ‘ NMH G o ve rnme nt’ c o ns id e re d ‘ S to c k E xc ha ng e L is ting ’ o f Inc he o n A irp o rt → F a ile d !• Ne w ‘ MB g o ve rnme nt’ p us hing fo rwa rd the Priva tiz a tio n o f P ub lic E nte rp ris e s - In 2008, d e c id e d to s e ll 49% o f its s to c k - F a c ing P ub lic Re s is ta nc e - P la nning to s e ll 15% o f its s to c k in 2012, 34% in 2013 - In 2011, ma ke 15% a s a g o ve rnme nt- is s ue d s to c k ( IP O )
  20. 20. Ⅳ - 4. P ro s a nd C o nsPro s1. G o ve rnme nt is C a re fully A p p ro a c hing !2. G lo b a l Tre nd o f A irp o rt P riva tiz a tio n !3. Ma rke t S urve illa nc e a nd Tra ns p a re nc y !
  21. 21. Ⅳ - 4. P ro s a nd C o nsC o ns 1. A lre a d y a G o ld e n G o o s e ! 2. P o s s ib le C ha ng e s in S e rvic e s ( e ve n in a b a d wa y) ! 3. S ta te L e ve l S id e - E ffe c ts ! 4. Hig h D o me s tic O p p o s itio n !
  22. 22. Ⅳ - 5. Is s ue s• Is s ue 1 : Why S e ll a n A lre a d y- Pro fita b le E nte rp ris e ?
  23. 23. Ⅳ - 5. Is s ue s• Is s ue 2 : Will We L o s e C o ntro l a nd Po we r?
  24. 24. Ⅳ - 5. Is s ue s• Is s ue 3 : Is it a Po litic a l S c a nd a l ?
  25. 25. Ⅳ - 5. Is s ue s• Is s ue 3 : Is it a Po litic a l S c a nd a l ?
  26. 26. [ Inc he o n A irp o rt P riva tiz a tio n ]Ⅴ . C a s e S tud y
  27. 27. Ⅴ - 1. F a ilure C a s e – He a thro w A irp o rt O ve rvie wO wne r B ritis h A irp o rts A utho rityO p e ra to r H e a thro w A irp o rtLo c atio n A uthon , U n ite d Lo n d o rity Kin g d o mH u b fo r B ritis h AirwaysWe b s ite h ttp ://www.h e ath r h ttp ://www.b aa.c o m / o wairp o rt.c o m
  28. 28. Ⅴ - 1. F a ilure C a s e – He a thro w A irp o rtThe firs t ma jo r A irp o rt P riva tiz a tio n 1 ) In m id 80s , th e Th atc h e rg o ve rn m e n t p rivatize d s o m e s tatein d u s trie s an d d e c id e d to ap p ly th isp o lic y to m aj r B ritis h airp o rts . o 3) Th e c o m p an y was p rivatize dth ro u g h a 1 00% s h are flo tatio n in 1 987. 4) B u t th e g o ve rn m e n t ke p t th e “g o ld e n s h are ” in c as e o f a fo re ig n b id(e xam p le ). S o , it is s till re g u late d b y th eB ritis h C ivil Aviatio n Au th o rity.
  29. 29. Ⅴ - 1. F a ilure C a s e – He a thro w A irp o rt B ritis h A irp o rt A utho rity A nnua l Re s ult, 2011 An n u al re s u lt ,201 1
  30. 30. Ⅴ - 1. F a ilure C a s e – He a thro w A irp o rt A fte r Priva tiz a tio n o f He a thro w A irp o rt ( 1) Mo no p o ly B B A c o n tro lle d airp o rts (6 in to tal) ac c o u n te d fo r m o re th an 90% o f air p as s e n g e r in an d aro u n d Lo n d o n . Re s u ltin g in h ig h e r c h arg e s , h ig h e r p arkin g c h arg e s an d re s tric tin g s o m e p o te n tial e n tran ts (lo w c o s t airlin e s ). O n e o f th e B B A c o n tro lle d airp o rt G atwic k was s o ld at a lo s s o f $ 400 m illio n .
  31. 31. Ⅴ - 1. F a ilure C a s e – He a thro w A irp o rt A fte r Priva tiz a tio n o f He a thro w A irp o rt ( 2) O ve r C o mme rc ia liz e d In 1 960, wh e n B B A s till a p u b lic c o m p an y it e m p h as ize d m o re o n th e we lfare o f th e s take h o ld e rs , like h avin g m an y s e ats as p o s s ib le in th e airp o rt b u t to d ay e ve ry in c h o f s p ac e is u s e d fo r re tail s p ac e .
  32. 32. Ⅴ - 1. F a ilure C a s e – He a thro w A irp o rt A fte r P riva tiz a tio n o f He a thro w A irp o rt U nfinis he d p riva tiz a tio n h e lan d in g an d th e take o ff p ric in g fo rm u la is s e t in ve rs e ly to th e p ro fit e arn e d th e n o n re g u late d ac tivitie s o f th e airp o rt, like d u ty fre e , c ar p arkin g c h arg e s , re s tau ran ts . Wh e n B B As n o n re g u late d p ro fits are h ig h , as at H e ath ro w, airp o rt is “ p u n is h e d ” b y b e in g fo rc e d to c h arg e lo we r fe e to airlin e s , c au s in g e s s d e m an d , re s u ltin g in c o n g e s tio n .(S .H akim , 1 996) ) Re g ula tio nAfte r p rivatizatio n th e re g u latio n o f th e airp o rt b y th e c ivil au th o rity h as b e c o m e im al. (lan d in g c h arg e s )
  33. 33. Ⅴ - 2. S uc c e s s ful C a s e – C hub u A irp o rt 1 ) With m u c h lo b b yin g b y lo c alb u s in e s s g ro u p s u c h as To yo ta,e s p e c ially fo r 24 h o u r c arg o flig h ts ,c o n s tru c tio n b e g an in 2000. 2) It is Jap an ’s th ird larg e s tin te rn atio n al g ate way afte r N aritaIn te rn atio n al Airp o rt j s t o u ts id e To kyo uan d Kan s ai In te rn atio n al Airp o rt o u ts id eO s aka. It o ffic ially o p e n e d in 2005. 3) Fo r 201 1 , th e airp o rt h ad aro u n d9.6 m illio n p as s e n g e rs .
  34. 34. Ⅴ - 2. S uc c e s s ful C a s e – C hub u A irp o rt Re a s o ns fo r s uc c e s s •L o c a tio n 1 ) To yo ta Mo to r C o rp o ratio n , H o n d a Mo to r C o ., Ltd ., an d Mits u b is h i H e avy In d u s trie s , Ltd ., are lo c ate d in th e re g io n . 2) C h u b u re g io n h as a p o p u latio n o f 21 ,71 5,822 as o f 201 0 3) C h u b u is th e m o s t vib ran t re g io n in Jap an , wh o s e to tal G D P re ac h e s U S $ 670 b illio n . Th is n u m b e r is c o m p arab le to S o u th Ko re a’s o r Au s tralia’s n atio n al G D P in 2004. 4) C h u b u , wh ic h p ro vid e s ac c e s s to 24 c itie s in Jap an , h as a m o re e xte n s ive n e two rk o f d o m e s tic ro u te s th an Kan s ai an d N arita.
  35. 35. Ⅴ - 2. S uc c e s s ful C a s e – C hub u A irp o rt Re a s o ns fo r s uc c e s s ( 2) O wne rs hip It is o p e rate d b y a c o m p an y th at is 50 p e r- c e n t o wn e d b y p rivate in te re s ts an d th e re s t b y th e c e n tral an d lo - c al g o ve rn m e n ts in ve s tin g 40% an d 1 0% re s p e c tive ly. ( 3) E ffic ie nc y – Kaiz e n a c o n c e p t v e ry p o p u - lar w ith th e J ap an e s e p riv ate c o m p an ie s . Th e C h u b u airp o rt p ro j c t is an im p re s s ive e e xam p le o f c o s t re d u c tio n . Th e to tal c o s t h as b e e n s las h e d to 643 b illio n ye n , d o wn 1 25 b illio n ye n fro m an in itial e s tim ate fo r th e c o n s tru c tio n o f airp o rt. Als o lan d in g fe e was
  36. 36. Ⅴ - 2. S uc c e s s ful C a s e – C hub u A irp o rt Re a s o ns fo r s uc c e s s ( 4) A wa rd s - S e rvic e 4th B e st Airp o rt Wo rl wid e o f th e Airp o rt S e rvic e Q u ality d Award s b y Airp o rts C o u n c il In te rn atio n al an d B e st Airp o rt b y S ize in th e 5 to 1 5 m illio n p as s e n g e r c ate g o ry.
  37. 37. [ Inc he o n A irp o rt P riva tiz a tio n ]Ⅵ . C o nc lus io n
  38. 38. Ⅵ . C o nc lus io n Privatization has both advantages and disadvantages as presented earlier.For Incheon airport , we have concluded that privatization of the airport atthis stage is not a good option, as learnt from the Heathrow airport case studythat privatization is not necessarily a good thing.

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