President and CEO, Hag-jae Lee, talks to Joe Bates about the success, ambitions and infrastructure development plans of Incheon International Airport.
Arguably, very few new airports have made such an impressive start to life as Incheon International Airport, which within a few years of opening in the Spring of 2001 had earned itself a reputation for being an IT innovator, pioneer in terms of its retail/F&B offerings, and a customer service champion.
All that on top of being an economic powerhouse and South Korea’s main international gateway to the world ensured that the airport – built on reclaimed land in Incheon around 60 kilometres from Seoul – quickly became popular with both locals and overseas visitors alike.
Indeed, unique events like the Walk of the Joseon Royal Family – a daily procession through the terminal by performers in traditional costumes from the Joseon Dynasty – and facilities such as its own museums, Hikr Station and K-Culture Zone have earned Incheon International Airport (ICN) a reputation for doing things a little differently.
All played a part in ICN being named the ‘Best Airport in the World’ in ACI World’s annual customer excellence awards for 12 years in a row until the format changed a few years ago and the category was replaced by a more regionalised format.
Incheon also became the first airport in the world to achieve Level 5 status in ACI World’s Airport Customer Experience Accreditation programme in Q3 2022.
Its success in ACI’s Airport Service Quality (ASQ) programme in particular was a source of much pride to not only the airport but to South Koreans in general, with multi-award winning ICN almost being regarded as something of a national treasure, and that feeling of satisfaction in its success and support for its future growth appears to have continued to this day.
As has its success in aviation’s various customer service based award programmes, with Incheon jointly winning the ASQ crown for Best Airport in the Asia-Pacific region for airports handling over 40 million passengers per annum for the last three years.
It is also extremely proud of being recognised as a 5-Star Airport in the annual SKYTRAX World Airport Awards, which praises Incheon for its facilities, comfort, cleanliness, shopping, food & beverages, staff service and security/immigration.
So, from a customer service/excellence point of view, can Incheon actually raise the bar any higher?
Hag-jae Lee, president and CEO of operator Incheon International Airport Corporation (IIAC), is in no doubt that it can, and like all of his predecessors, is committed to making sure that customer service remains a top priority for the gateway.
“To stay ahead, we will continue to develop premium departure services, expand off-airport and embrace new technology, such as Smart Pass and other self-service options,” says Lee.
“Moving forward, our aim is to drive a comprehensive digital transformation in airport operations that will provide even more differentiated services and ensure a safer and more convenient airport experience.
“We are also committed to adding elements of culture and the arts to further innovate and differentiate the experience. You can always do more to enhance customer service.”
Reflecting specifically on the SKYTRAX award, he noted: “This award represents the hard-earned result of the unified efforts of our 94,000 on-site employees, all committed to making Incheon airport the world’s leading service-oriented airport.”
TRAFFIC GROWTH BACK ON THE AGENDA
Prior to the COVID pandemic, Incheon International Airport was the sixth busiest airport in Asia-Pacific and the 14th busiest in the world for passenger traffic.
Like many other airports, more than a decade of year-on-year traffic growth culminated in Incheon handling a record-breaking 71.17 million passengers in 2019, and expectations were high for 2020 and the next few years.
The global pandemic, of course, changed all that, but Incheon began to experience the green shoots of recovery in 2023, and in 2024 the airport equalled its previous best total when it once again welcomed an all-time high of 71.17 million passengers.
The total saw it jump from the 20th busiest passenger gateway on the planet to 13th, driven by an incredible 26.7% upturn in international travellers. The huge increase meant that passengers on international flights accounted for 70.6 million of last year’s total, elevating ICN into unchartered territory as the third busiest international airport in the world.
While the yearly total of 71.17 million (+26.6%) also meant that it became the fifth busiest airport in Asia-Pacific for passenger traffic after Tokyo Haneda (HND), Indira Gandhi (DEL), Shanghai Pudong (PVG) and Guangzhou Baiyun (CAN). Dubai International Airport (DXB), which is located in ACI’s Asia-Pacific & Middle East region, remains the busiest airport on the planet.
And the good news is that last year’s steep upward traffic trends have continued into 2025, resulting in the airport recording its best-ever half-year total of 36.3 million passengers (+6.1%) for the six months ending June 30.
The situation has led the airport to project that it will handle between 73 million and 76.3 million passengers this year – the lower figure being the most conservative prediction and the higher one being the most optimistic.
Lee notes that positive factors for growth this year include the temporary visa-free entry policies for Chinese tour groups, although he admits that uncertainties such as continued low economic growth and global conflicts may act as constraints.
Looking slightly further head, IIAC reveals that over the next five years (2025–2030), the average annual growth rate in passengers is projected to be around 4.3%, driven by increasing outbound Korean travellers and Low-Cost Carrier (LCC) expansion.
This could lead to Incheon reaching around 100 million passengers per annum by 2032, even if slower economic growth than anticipated and demographic shifts reduced the annual growth rate to 3% during this period.
MAKING MILESTONES
Lee believes that the significant rise in passenger numbers, and the unveiling of IIAC’s Aviation AI Innovation Hub vision, ensures that the year-to-date has been a “remarkable” one for Incheon International Airport.
He explains: “The first half of 2025 has been remarkable for two main reasons. First, despite persistent currency and oil price volatility, passenger traffic reached 36.36 million – the highest first-half figure in our history, surpassing the previous record of 35.5 million set in 2019.
“Second, we officially announced our ‘Aviation AI Innovation Hub’ vision in March, which will effectively create new value for Incheon airport beyond traditional airport operations.
“Our goal is to establish an AI industry ecosystem within the airport that seamlessly integrates technology development, demonstration, and advancement in partnership with big tech, startup companies, leading universities, and research institutes.”
He is also quick to point out that ICN’s IA ambitions have led to it becoming the first airport in Asia to officially join the Airports AI Alliance (AAA), a global co-operative network of leading airports and technology companies.
“This represents international recognition of our leadership and pioneering role in AI-driven airport innovation,” states Lee. “We are committed to sharing AI technologies with the global community, furthering our vision of becoming an airport that changes the world.
“Without wishing to overstate things, I believe these milestones mark 2025 as both a record-setting and future-defining year.”
INTERNATIONAL ROUTE NETWORK AND AIRLINES
Incheon effectively serves as an international airport with Seoul’s former main airport, Gimpo International Airport (GMP), essentially operating as a domestic gateway with the exception of a handful of flights to China, Japan and Taiwan.
As a result of these distinct roles, the most popular routes from ICN are all to international destinations, led by Tokyo, Osaka, Fukuoka, Bangkok and Hong Kong, which between them account for around 26% of Incheon’s annual passenger volumes.
The top five airlines today in terms of passenger volumes are Korean Air (KE), Asiana Airlines (OZ), Jeju Air (7C), Jin Air (LJ), and T’way Air (TW). Notably, all five are Korean carriers, and together they account for 60.9% of all passengers passing through the airport.
Among them, the combined market share of Korean Air and Asiana Airlines (both full-service carriers) is 38.7%, while the low-cost carriers make up 22.2%.
INFRASTRUCTURE DEVELOPMENT
Incheon completed its fourth phase expansion in 2024 and is now capable of handling 106 million passengers annually – nearly double its opening capacity of 54mppa.
In addition, the airport is now equipped to accommodate up to 600,000 aircraft movements and 6.3 million tons of cargo annually – increases of 20% and 26% respectively on its opening day capabilities.
However, the development of Incheon International Airport is far from complete, with the construction of a fifth runway and third terminal already factored into its future growth.
“With globalisation and the continued growth in demand for global aviation, current projections indicate our Phase 4 facilities will reach capacity by about 2033,” says Lee.
“We are aware of what needs to be done. With competition among Asian hubs continuing to increase, the timely expansion of Incheon’s capacity is critical for maintaining our hub competitiveness.
“Delays in expansion could result in congestion, operational inefficiency, higher fares, and the loss of transit traffic, thereby weakening both the airport and Korea’s competitiveness in the aviation sector.
“Given that major airport developments typically take 8–10 years from planning to completion, it is essential to begin preparations now to ensure the timely delivery of additional infrastructure that will include a fifth runway, Terminal 3, new apron and aircraft parking areas.”
CARGO GROWTH AND DEVELOPMENT
With Incheon being such an important passenger hub for South Korea and the Asia-Pacific region, it is often easy to forget that it is also the world’s sixth biggest cargo gateway, handling close to three million tonnes of freight annually.
In 2024, Incheon handled 2.95 million tonnes of air cargo (+7.4%) to retain its status as one of the world’s leading cargo hubs alongside Hong Kong (HKG), Shanghai Pudong (PVG), Memphis (MEM), Anchorage (ANC), Louisville (SDF), Miami (MIA) and Hamad (DOH).
Incheon boasts major cargo terminals operated by Korean Air, Asiana and AACT as well as hundreds of cargo, logistics and manufacturing facilities spread across a 3.2 million square metre Free Trade Zone (FTZ) developed and managed by Incheon Airport.
When Lee was appointed president and CEO of IIAC he quickly outlined plans to focus on creating a “smart logistics cluster” and further enhancing ICN’s global route network to potentially take cargo operations at the airport to the next level.
The initiative will prioritise several key areas, such as the development of a ‘smart cargo terminal’, the construction of a 25,400sqm Joint Distribution Centre for Small and Medium-sized Enterprises (SMEs), expansion of the global network, and the attraction of air cargo and logistics specialists, including e-commerce and 3PL companies.
Talking about the smart cargo terminal concept, Lee says: “Smart cargo terminals are a core infrastructure for securing both logistical efficiency and global competitiveness in the era of the Fourth Industrial Revolution.
“Traditional cargo terminals have shown limitations due to labour-intensive environments and aging facilities, particularly in processing speeds and operational stability. Our vision is to completely modernise these terminals through the integration of AI, IoT, robotics, and big data technologies.
“This digital transformation in cargo operations will allow us to proactively meet future aviation logistic demands by increasing cargo throughput and shortening lead times, positioning Incheon Airport as a global smart logistics hub. Furthermore, it will attract global logistics companies, generate employment opportunities, and drive economic growth.
“As a first step, we are implementing a pilot project from this year through 2030 to install advanced automation and unmanned logistics equipment, along with IT systems, within the existing terminal space.
“Based on the outcome of this pilot phase, we plan to launch a second-phase full-scale construction of a new smart cargo terminal.
Once we gain experience of operating such a facility, we aim to expand the model to overseas airport projects, thereby diversifying our business and enhancing Incheon’s global influence in the logistics sector.”
INNOVATION PIONEER
Since its inception the airport has pioneered and adopted new technology that have included security innovations, augmented reality, robotics and more recently developing AI-powered solutions.
So, does Hag-jae Lee consider ICN to be a smart airport in terms of innovation and developing/embracing new technology?
He says: “In my experience, yes. In March 2024, we officially declared a ‘Digital Transformation’ strategy. This was not merely a technology adoption initiative, but a commitment to shift our entire operational and organisational culture toward a digital-first mindset, marking a pivotal starting point for our transformation into a truly digital global airport.
“Under this strategy, we continue to expand the scope of digital innovation across the entire customer journey. For example, we are gradually introducing autonomous mobility solutions such as self-driving shuttle buses and indoor autonomous vehicles to improve airport accessibility and assist passenger movement.
“Since May 2025, our digital twin-based intelligent traffic control system has greatly improved the efficiency and safety of ground transportation by collecting and analysing real-time traffic data and swiftly responding to incidents.
“The facial recognition-based ‘Smart Pass’ simplifies departing procedures by enabling passengers to pass through using only their face, boosting both security and convenience and cutting waiting times by approximately 40%.
“Scheduled for launch in late 2025, self-service check-in robots are expected to further reduce passenger wait times and alleviate staff workloads during peak hours.
“Since first introducing 11 robots in 2018 for tasks like guidance and cart transport, we have expanded their roles to include patrols, self-check-in, and docent services.
“Lastly, we are enhancing personalised passenger guidance through initiatives such as a renewed airport information app and the development of an AI-powered integrated customer service management system.”
GOING GREEN
As you would expect from one of the world’s leading airports, ICN is very much onboard with aviation’s net zero emissions goals and the need to develop sustainably to ensure its licence to grow.
It holds Level 4 status in ACI’s Airport Carbon Accreditation programme and has been a member of the RE100 global corporate renewable energy initiative since 2022.
Reducing INC’s CO2 footprint and adopting renewable energy sources are certainly two key focuses of the airport’s sustainability strategy.
“We are on track to source 15% of our total electricity needs this year from renewable sources, leveraging 39MW of solar and 10MW of geothermal power installed onsite,” enthuses Lee.
“We are investing in large-scale green infrastructure – including building a 35MW solar farm this year – to accelerate our journey toward 100% renewable energy by 2040.
“To support the transition to green mobility, we are developing extensive infrastructure, including over 1,000 EV charging stations, equipment electrification facilities for ground handling operations, and the airport’s first large-scale liquefied hydrogen fuelling facilities.”
Although it is early days, Sustainable Aviation Fuel (SAF) has also been commercially available at Incheon since September last year.
“The SAF initiative is in partnership with the government, airlines, ground handlers, and refiners. To support adoption, we have implemented incentive programmes for SAF users,” notes Lee.
SISTER AGREEMENTS
Like the world’s biggest airport, Hartsfield-Jackson Atlanta, Incheon favours co-operation or sister agreements with other airports to encourage collaboration and the exchange of knowledge and best practices.
ICN currently maintains co-operation agreements with nine other airports, which according to Lee, form the basis for “various collaborative activities, including staff exchanges, working group meetings, and the sharing of operational know-how and expertise”.
“To date, Incheon Airport has signed a total of 12 co-operation agreements with nine major international airport operators, including Schiphol, Vienna, Istanbul, and Airports of Thailand (AOT), among others,” he enthuses.
“In particular, we have built strategic partnerships with airports such as Schiphol and Vienna, with whom we carry out secondment programmes for the exchange of staff and hold annual working group meetings focused on areas of mutual interest.
“Furthermore, since 2016, Incheon Airport has been hosting the World Aviation Conference. We will host the 8th World Aviation Conference (WAC) this September. It will bring together aviation experts from around the world to explore innovations in airport services, particularly those driven by emerging technologies, such as AI.
“Through these strategic partnerships, we’re able to quickly adopt global best practices, promote joint R&D and digital transformation initiatives, and respond collectively to global challenges.
“These efforts are generating tangible synergies that help us stay competitive and accelerate our transition into the airport of the future.”
GLOBAL AIRPORT OPERATOR
In the past, Incheon International Airport Corporation used to be listed in Airport World’s biennial A to Z of Global Airport Operators listing courtesy of its former 5% stake in Khabarovsk Novy Airport in eastern Russia, backed up by a series of consultancy contracts in Iraq (Erbil), the Philippines (Mactan Cebu), Cambodia (Siem Reap) and elsewhere.
It continues to look for opportunities to export its expertise overseas in terms of non-equity investments, but does last year’s award of a $3 billion contract to its New NAIA Infra Corp consortium to modernise and operate Manila’s Ninoy Aquino International Airport in the Philippines, and the more recent announcement that it is the preferred bidder for the concession to operate Urgench International Airport in Uzbekistan, signal IIAC’s willingness to once again become an operator and investor in airports outside of South Korea?
“Expanding our business overseas by exporting the ‘K-Airport Model’ is a core priority,” states Lee. “Since its opening in 2001, Incheon Airport has undergone four phases of expansion projects, through which it has accumulated world-class expertise in airport construction and operations. We are now once again leveraging this experience to actively pursue international projects.
“Starting with the operational consulting project for Erbil New Airport in Iraq in 2009, IIAC has won 39 contracts across 18 countries, totalling $405 million. Notably, last year we achieved a record performance in overseas business by securing five new projects – including the development and operation of Manila Airport – with combined orders amounting to KRW147.5 billion.
“This year, IIAC is working to participate in public-private partnership (PPP) projects for the operation and development of two airports in Montenegro and is also seeking to win contracts such as the digital transformation of Ethiopia’s Bole International Airport. Regarding the Urgench Airport project in Uzbekistan, although the final concession agreement has yet to be signed, IIAC is currently designated as the preferred bidder, and we aim to reach a final agreement through exclusive negotiations over the next three months.
“We are focusing our capabilities on directly developing and operating more than ten overseas airports by 2030. We plan to actively pursue contracts for large-scale, long-term, high value-added projects.”
You heard it here first! Watch this space for further developments.