Research Summary

I. Introduction

• (Background and Objective) As international mobility normalized after COVID-19, Korea’s tourism industry entered a rapid recovery phase. However, on the demand side, two structural problems have continued to persist: the imbalance between inbound and outbound tourism, and the concentration of inbound tourism in the Seoul metropolitan area.
• (Research Topic 1) This study identifies the characteristics and imbalances of the aviation supply network by comparing routes between Korea and neighboring Northeast Asian countries.
• (Research Topic 2) Through the Japanese case, this study examines policy design and local government implementation strategies for transforming regional airports into inbound tourism hubs.
• (Research Topic 3) Based on the findings, this study proposes policy and strategic directions for a Korean model of regional airport revitalization.

Scope of Research by Area

II. Analysis of Aviation Networks between Korea and Neighboring Northeast Asian Countries

1. Current Status of Korea’s International Flight Operations

• Korea’s passenger aviation network had already shifted before COVID-19 into a structure in which international capacity expanded rapidly and surpassed domestic services. Since the pandemic, international operations have grown even further, reinforcing an aviation network centered on international routes.
• Korea’s international network is characterized by a concentration of routes to nearby Asian countries, particularly the three Northeast Asian markets of Japan, China, and Taiwan, combined with a supply structure centered on Korean carriers. This structure has strengthened Korea’s outward-oriented aviation pattern and has become one contributing factor to the country’s chronic tourism account deficit.
• The current concentration of scheduled international routes at airports in the Seoul metropolitan area has weakened the international function of regional airports and further intensified the concentration of inbound tourism demand in the capital region.

2. Analysis of Korea’s International Air Network (with a focus on routes to Japan, China, and Taiwan)

• (Market share of Korean and foreign carriers) An analysis of the shares of Korean and foreign carriers across major passenger markets shows that routes to Japan exhibit an imbalanced structure centered on Korean carriers, whereas routes to China and Taiwan show either a higher share of foreign carriers or a relatively balanced structure between Korean and foreign airlines.
• (Korea–Japan network analysis) Korean carriers have built a dense, capillary-like network connecting destinations across Japan (31 cities and 58 routes), while Japanese carriers’ routes to Korea remain limited and centered on metropolitan airports such as Incheon and Gimpo.
• (Korea–China network) Korean and foreign carriers operate route networks of similar shape and scale, with Chinese foreign carriers showing particular strength on Jeju routes.
• (Korea–Taiwan network) Korean carriers dominate the market in both supply volume and route diversity, with routes from regional airports such as Gimhae and Cheongju to Taipei standing out in particular.
• (Japan–Taiwan network) Similar to the Korea–Japan market, the Japan–Taiwan market also shows a structure in which Taiwanese carriers, representing the visiting country, serve destinations across Japan, while Japanese carriers, representing the receiving country, are limited to only a small number of routes.

III. Strategies for Revitalizing Japan’s Regional Airports and Local Government Cases

1. Current Status of Japan’s Regional Airports and Inbound Visitor Reception

• Among Japan’s approximately 97 airports, 37 airports—about 38% of the total—operate international routes. Despite the high concentration of traffic at major hub airports such as Tokyo and Osaka, non-hub regional airports still play a meaningful role as gateways for inbound visitors.

2. The “Inbound Visitor Support Airport” Program for Revitalizing Japan’s Regional Airports

• The expansion of foreign tourist demand in Japan’s regional areas is the result of a “regional dispersion of tourists” strategy pursued since the 2010s in response to the risk of regional decline. As a core policy instrument, support programs for regional airports have been actively utilized.
• Japan’s regional airport revitalization policy operates under a shared goal of regional economic revitalization and is based on a multi-layered governance system in which the central government, local governments, regional DMOs, and other stakeholders participate.

3. Local Government Cases of Inbound Promotion Linked to Regional Airports in Japan

• The revitalization of Japan’s regional airports has been made possible not only through central government infrastructure and financial support, but also through the parallel implementation of independent inbound demand creation strategies by local governments.
• In connection with efforts to attract foreign airlines to regional airports, local governments have pursued inbound promotion strategies centered on accessibility improvement, wider-area connectivity, financial incentives, and target marketing.

IV. Strategic Recommendations for Revitalizing Korea’s Regional Airports

1. Four Key Strategic Tasks for Revitalizing Korea’s Regional Airports

To shift the focus of regional airport policy toward the creation of inbound demand, this study proposes the following four directions:

• Reframing regional airports from “outbound terminals” to “strategic inbound bases”
• Restoring structural balance in the supply network by attracting scheduled services from foreign airlines
• Establishing clear roles and responsibilities among the central government, local governments, and airport operators, while strengthening local government accountability
• Creating stay-oriented demand through integrated aviation-tourism promotion

2. Detailed Recommendations for Implementation

[Aviation Policy and Infrastructure] Designing incentives to remove entry barriers for foreign airlines

• Introduce a strategic slot quota system and allocate prime-time slots
• Provide a tailored “Zero-Cost” package to eliminate initial operating costs for foreign airlines

[Role of Local Governments] Upgrading the role of local governments as drivers of regional tourism demand creation

• Make direct investment in secondary transport networks to improve Last Mile connectivity
• Develop and brand sustainable, stay-oriented tourism products linked to distinctive regional assets
• Design and brand wider regional tourism routes in collaboration with neighboring local governments

3. Economic Effects of Attracting Foreign Airlines to Regional Airports: A Case Study of Yangyang International Airport

• (Background for selecting Yangyang International Airport) Although Yangyang International Airport has infrastructure capable of handling international flights, it currently has no scheduled services. It was therefore selected as a strategic case study to examine how underutilized infrastructure can be better leveraged to create new inbound-centered demand.
• (Cost structure analysis under a new foreign airline route scenario) Assuming the launch of a new foreign airline service operating three times per week over 52 weeks annually with a load factor of 70%, estimated major airport-related costs amount to approximately KRW 120 million per year. When private-sector costs such as ground handling and de-icing are included, total airport-related costs are estimated to reach as much as KRW 820 million.
• To analyze the ripple effects of direct tourist spending by visitors arriving through Yangyang Airport on the broader regional economy of Gangwon Province, an input-output analysis was conducted. The results suggest potential impacts of up to KRW 3.9 trillion in production inducement effects, KRW 1.8 trillion in value-added inducement effects, and employment inducement effects equivalent to approximately 20,000 jobs per year.