Establishment of Incheon-type MRO industry portfolio, effect of employment of 3,000 people by 2025
Incheon seeks an Incheon-type job model in the aviation maintenance (MRO) industry.
Incheon announced on the 23rd that it was selected for the ‘2022 labor-management win-win local job consulting support project’ by the Ministry of Employment and Labor.
▲ When Incheon's aviation industry is activated, Incheon will have both wings of future food along with the 'Incheon bio industry' that is being promoted. This will provide a new engine for economic growth and job creation for young people in Incheon. The picture shows an aircraft remodeling process. Sharp Technics.
This public offering project is a project to create local-specific jobs by developing a job model that can coexist with the local community and supporting the establishment of implementation plans. Of the 17 metropolitan cities and provinces, only 3 local governments including Incheon were selected for this project.
Incheon planned this project to develop a local job model that can create synergy in connection with the various aviation maintenance (MRO) industries promoted by the city.
The city plans to discover an Incheon-type job model by supporting customized direct jobs to companies such as the IAI aircraft remodeling project, the US Atlas heavy maintenance center, and the Korean Air engine maintenance cluster project, which it attracted last year, and providing stable jobs to job seekers. And it is expected to enhance the competitiveness of companies and create jobs for young people.
Based on the tripartite agreement signed by the Incheon Regional Headquarters of the Korea Federation of Trade Unions and the Incheon Enterprises Federation and Incheon Metropolitan City in February, the city aviation department will oversee the project and Jung-gu, Incheon, where many aviation maintenance companies are located, will participate as a cooperative local government. In addition, the Institute for Aerospace Industry-Academia Collaboration, Incheon National University, Incheon Research Institute, Citizens and Alternative Research Institute will form a consortium to promote the project.
▲ On January 5, Incheon Metropolitan City held a 'business agreement ceremony for the development of the aviation MRO industry' in the hospitality room of the city hall on January 5 and had time to take a commemorative photo with Korean Air CEO Woo Ki-hong and other guests.
The Institute for Aerospace Industry-Academia Collaboration, a representative consortium institution, conducts research on aviation MRO as a regional industry-specialized institution, and Incheon University/Citizens and Alternative Research Institute as a labor-related institution conducts research on win-win employment strategy and governance reinforcement methods. In addition, the Incheon Research Institute, as a regional specialized institution, conducts job model development through analysis of Incheon's employment structure.
Currently, the domestic MRO industry lacks specialized companies due to its own maintenance system centered on airlines and is highly dependent on foreign countries, so 51% of the domestic aviation maintenance volume, or about 756 billion won, is outflowing overseas.
In addition, most of the major overseas aviation maintenance countries are promoting government-led industrial development, but in the case of Kore, there are limitations in legal, institutional, financial, and administrative support as it is centered on local governments. After all, it can be seen that the MRO industry is still at a low level even though it is the 7th country in the world with air transport capacity.
To improve this, the government announced in August ‘the plan to strengthen the competitiveness of the aviation maintenance industry’ and showed its intention to actively foster the industry.
Incheon has also been building an Incheon-type MRO industry portfolio by attracting the Israeli IAI aircraft remodeling project (‘21.5.), the US Atlas aircraft heavy maintenance center (‘21.7.), and the Korean Air engine maintenance cluster (‘22.1.).
Through this, direct employment of about 3,000 people is expected to occur from 2025, and considering the growth of the MRO industry after COVID-19, more new jobs can be expected.
The city considered that there is a limit to strengthening industrial competitiveness with this single project, and planned this project to develop a job model that can create synergy in connection with this public offering project.
