KOTI - Korea Transport institute

The aviation transportation industry, which is sensitive to both domestic and international conditions, requires the establishment of a risk management system to reduce uncertainties and financial institutions in the form of public agencies, corporations, or private sector joint organizations to support the continuous and balanced development of the aviation industry. Therefore, it is necessary to develop specific plans for the establishment and operation of the organization to financially support aviation industry in the future. Based on the proposed tasks in this study, three stages of implementation tasks have been outlined. In the initial stage, efforts will be made to promote the participation of both national airlines in the 'Aviation Industry Development Association' and to issue implementing regulations promptly. Subsequently, the association's insurance activities will be gradually expanded, and participation targets and funding will be significantly secured. In the mature stage, expansion will cover airport operators and urban air transportation businesses, leading to the development of joint products. The proposed measures related to financial institutions and relevant agencies are presented in an integrated manner. In the preparation and execution phase, additional proposals will be made for the association.

Currently, the Korea Aviation Association is limited in its scope, primarily involved in the collection, analysis, and dissemination of aviation information. To expand the limited information collection and research functions into aviation finance, it is necessary. Furthermore, a small-scale financial forum that can sustain interest in aviation finance from the government and the industry will be promoted. In the development stage, research institutions related to aviation finance will be established. Similar to the development of the Maritime Trade Information Center in the maritime sector, aviation finance expertise will be strengthened. The small-scale forum, which started, will be expanded into international and domestic financial events to increase interest. Additionally, an education program will be established to train aviation finance professionals and enhance industry competitiveness. Finally, government financial institutions, banks, and others will establish aviation finance specialized agencies/departments and prepare their foundations. Subsequently, efforts will be made to promote development as an aviation finance corporation similar to the Korea Ocean Business Corporation.