Nearly Half of Incheon Airport Logistics Warehouses Subleased, Defeating Purpose

A significant portion of logistics warehouses at Incheon Airport's logistics complex are being subleased, a practice that undermines the complex's original purpose of supporting air cargo operations. Investigations reveal that about half of the 42 warehouses are sublet, with many exceeding the 20% sublease limit set by the Incheon International Airport Corporation in 2020. Some facilities have sublease rates as high as 90%.

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The sublease ratio of 21 warehouses is 41.71%. This is double the sublease ratio limit (20%, or 30% for foreign investment) applied in the standard contract since 2020 by Incheon International Airport Corporation.

The airport logistics complex was established in 2004 to store, package, and transport goods arriving by air, serving as a crucial support base for logistics companies utilizing air transport. Incheon Airport Corporation offers land at an annual rent of 5.85% of the official land price to encourage cargo volume growth. However, some companies construct warehouses and then sublease them to other logistics firms, effectively operating as warehouse rental businesses.

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Incheon Airport Corporation provides land at an annual rent of 5.85% of the official land price.

This practice has been criticized for deviating from the complex's intended purpose. A 2019 audit by the airport corporation itself pointed out cases of subleasing that went against business plans, leading to the implementation of the 20% sublease limit. Companies that secured leases before 2020, however, are not subject to these new regulations. With lease periods often set at around 30 years, resolving these issues quickly is difficult. An Incheon Airport Corporation official stated that regulations are being revised to ensure the complex operates according to its original intent.

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When Incheon Airport Corporation leases land, the successful bidder builds warehouses using the BOT method and then subleases them to other logistics companies.