Seoul Incheon Airport Generates 123 Trillion Won in Korean Economic Output

Seoul Incheon International Airport generated an estimated 123 trillion won in total production inducement effects in 2024, up 18 percent from a year earlier, according to Incheon International Airport Corporation.

The airport also created about 51 trillion won in value added effects and supported around 660,000 jobs, underscoring its role as one of South Korea’s most important economic platforms.

The figures include both industries directly linked to airport operations and tourism related sectors, including spending by foreign visitors. Directly connected airport industries generated about 67 trillion won in production effects, 26 trillion won in value added effects and 230,000 jobs.

When tourism related industries were included, the airport’s total value added impact was equivalent to about 2 percent of South Korea’s nominal GDP. Its total production inducement effect represented about 4.8 percent of nominal GDP.

The airport’s impact was also significant at the regional level. In Incheon, direct airport linked industries generated about 48 trillion won in production effects, 18 trillion won in value added effects and 170,000 jobs.

Including tourism related industries, the total regional production inducement effect reached about 51 trillion won, up 9 percent from the previous year. This accounted for about 41 percent of Incheon’s nominal GRDP. Total value added effects reached about 19 trillion won, equivalent to roughly 16 percent of the city’s GRDP.

By sector, air transport services made the largest contribution. In Incheon alone, the sector generated about 31 trillion won in production effects, 11 trillion won in value added effects and 77,000 jobs.

Commercial facilities at the airport, including duty free shops, food and beverage outlets and retail businesses, also produced strong economic benefits. The duty free sector alone generated about 2.6 trillion won in production effects and 1.4 trillion won in value added effects in Incheon.

Tourism related industries also benefited from the recovery in inbound travel. Their national production inducement effect reached about 39 trillion won, up 20 percent year on year, while value added effects stood at about 18 trillion won. The sector supported around 330,000 jobs.

The analysis was conducted by the airport’s Airport Industry Technology Research Institute using an input output model and inter regional input output model based on the Bank of Korea’s 2020 input output tables.