Winter City YANGYANG YANGYANG INTERNATIONAL AIRPORT

Winter City YANGYANG YANGYANG INTERNATIONAL AIRPORT

CONTENTS Yangyang Overview Yangyang, Gangwon-do(Province) 4 Tourism 6 Economy 10 Airport Facts General Overview Traffic Growth Destinations Airlines Airport Facilities Airport Plan 13 15 17 18 19 20 Incentives & Charges Incentives Airport Charges 22 23 Contact List Yangyang Airport Contacts Airport Partners 25 26 Image Source : Korea Tourism Organization

Yangyang Overview

Yangyang, Gangwon-do(Province) Yangyang is a gateway to the northeastern region of Korea, "Alps" of Asia 4

Yangyang, Gangwon-do(Province) Nation s major tourist attraction cities of Chuncheon, Gangneung, Sokcho and Pyeongchang where will host 2018 Winter Olympic Games Located 150km from Seoul and 200km from Incheon and connected to the capital by Yeongdong Expressway for a 3-hour drive. 5

Tourism Goseong-gun Inje-gun Sokcho-si 38km Yangyang Int'l Airport MAP OF YANGYANG AIRPORT'S CATOHMENT AREA 60km Gangneung-si Catchment Area - Yangyang International Airport is the only airport in Gangwon Pronvice that serves the northeastern region of the country. - Yangyang s catchment area includes five counties of Gangwon Province- Yangyang, Gangneung, Sokcho, Goseong and Inje. - Yangyang Int l Airport is 1-hour away from Sokcho City and Goseong and Inje Counties which are all located within 60km. 6

Tourism Distances and Travel Times in Yangyang Int l Airport s Catchment Area Distance(km) Gangneung City Hall 46.4 Sokcho City Hall 22.1 Inje County 59.5 Goseong County Council 45.9 Yangyang County Council 5.1 Travel Time Gangneung City Hall 1 hr Sokcho City Hall 40 min Inje County Goseong County Council 1 hr 16 min 1 hr 13 min Yangyang County Council 10 min * Fuel costs are calculated based on 12km/liter, KRW 1,680/liter Population Population near Yangyang Int'l Airport Gangwon Population (2014) 40.3% 620,000 = 1,539,767 7

Tourism Main Purpose of Trip Popular Destinations 8.5% 3% 4% 10.1% 11.3% 23% 42% 60.7% 9.4% 11% 4% 10% 3% Purpose Destination Leisure/Travel Study/Teaching Other Business/Professional Visit friends/relatives Tokyo Osaka Fukuoka Sapporo Beijing Shanghai HongKong North and South America Average Travel Period Average Number of Flight Trips (passengers of Yangyang Int l Airport) 0% 8% 6% 4% 8% 8% 12% 60% 12% 58% 24% Period Frequency 1~2 3~5 6~10 11~20 21~30 more than 1 2 3 more than 4 First time to travel by flight 8

Tourism Tourist Information 120-hour Transit Visa Exemption in Seoul Capital Area and Gangwon Province Chinese tourist groups of air transit travelers entering Yangyang International Airport to Jeju are allowed 120-hour visa-free visits to Seoul Capital Area and neighboring cities, effective since September 15th, 2014. Tourist Attractions in Gangwon Province Yangyang International Airport is situated near Korea's most popular holiday destinations, East Sea and Seorak Mountain which attract over 30 million visitors every year. Attractions Yangyang It features Hajodae with a fantastic view of crashing blue waves and Naksan Beach full of soft sands and transparent seawater. Gangneung Famous for housing Korea s oldest architectural building, Ojukheon, it attracts a large number of visitors every year to its beautiful sunrise in Jeongdongjin. Donghae With Donghae Whale Fossil Museum and Gawonseupji Ecological Park, it features a scenery of beautiful sunrise over emerald blue ocean. Sokcho Sokcho Seafood Market opens here with diverse kinds of seafood freshly delivered from East Sea. People in groups of families and friends flock to Seorak Waterpia from all over the country for a relaxing vacation in Korea s best-loved water park. 9

Economy GDP Trend of South Korea 2005-2013 (unit : billion USD) 1,500 1,427 1,400 1,330 1,377 1,300 1,265 1,200 1,100 1,000 900 1,151 1,105 1,043 967 920 2005 2006 2007 2008 2009 2010 2011 2012 2013 GDP Trend of Yangyang Catchment Area 2005-2013 35 30 25 (unit : billion USD) 23.6 25.0 26.9 28.0 29.1 30.6 32.4 33.9 34.8 20 15 2005 2006 2007 2008 2009 2010 2011 2012 2013 10

Economy Industry Yangyang International Airport, located near the northeastern coast of Korea connects to the cutting-edge industrial complexes in Gangneung, Donghae and Samcheok. The tourism industry in the area is growing fastly along with the development of these complexes. - Gangneung Okgye Industrial Complex 491,559m 2 Importing and exporting non-ferrous metals - Donghae Bukpeong National Industrial Complex 1,872,000m 2 Importing raw materials & exporting products (mainly trade) - Samcheok Industrial Complex 2,586,061m 2 Environment-friendly power plants 4 bituminous coal power plants (1,000MW) 2 LNG power plants 1 anthracite coal power plant 11

Airport Facts YNY

General Overview 13

General Overview Yangyang International Airport It is the only airport that serves the northeastern region of the country A gateway airport to Pyeongchang, the host city of 2018 Winter Olympic Games Fastest growing international traffic flight network - 365% international passenger increase compared to the year 2013 176,840 international passengers (2014) A wide range of incentives and assistance for airlines Offering a full array of services to airlines History - 1995 First selected as a candidate for new airport - 2002 Yangyang International Airport begins operation (KAL, AAR) - 2006 Jeju Air begins services - 2009 Korea Express services begin - 2013 International flight services begin MOU signed with Jin Air on services to Gimpo and Jeju('13.12~'16.3) and 23 destinations in China 14

Traffic Growth Traffic Figures in 2014 176,840 international passengers (year on year, 3.65 times increase) 1,099 international flights (2.74 times increase, compared to the previous year) 2,385 tones of cargo (4.80 times increase, compared to the previous year) Air Traffic Trend(Int'I) 2010-2014 1,200 1,099 1,000 800 600 294 400 198 200 134 72 0 2010 2011 2012 2013 2014 Passenger Traffic Trend(Int'I) 2010-2014 180,000 176,940 100,000 45,000 38,060 35,000 25,000 23,354 15,000 5,000 8,930 5,749 2010 2011 2012 2013 2014 15

Traffic Growth Cargo Traffic over 2010-2014 2,400,000 (unit : tonnes) 2,384.7 400,000 411.4 211.7 200,000 90,000 89.5 80,000 70,000 70.7 2010 2011 2012 2013 2014 Seasonal Variation (monthly Int'l Pax.) 2012 2013 2014 30,000 20,000 10,000 5,000 1,000 500 100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 16

Destinations Junyao Airlines offers a scheduled direct filght from Yangyang to Shanghai Yangyang Shanghai And many other charter flights to Changsha, Shenyang, Nanning, Shijazhuang, Chongqing, Nanjing, Chengdu, Taiyuan, Xian and others. 17

Airlines 18

Airport Facilities Airside Type Facility Size Capacity Landing/ Take-off Runway 2,500m 45m 43,000 times/yr Apron 42,250m 2 4 jets(a300) Air Navigation ILS, DVOR ILS, CAT- I (RW33) Landside Type Facility Size Capacity Passenger Terminal International 16,047m 2 1,100,000 passengers/yr Domestic 10,083m 2 2,070,000 passengers/yr Boarding Parking Check-in counters Parking lots 15 18,466m 2 498 lots Curfew none 19

Airport Plan 01 04 05 03 02 06 01 Hangar 04 Passenger Terminal 02 Parking 05 Air Traffic Control Tower 03 Jet Fuel Storage 06 Entrance 20

Incentives and Charges

Incentives Y angyang International Airport offers various incentive programs for airlines to develop and expand flight services up to 3 years. Incentives from Korea Airports Corporation New air carriers exemption for first year 100% exemption for second year 50% exemption for third year 30% * The routes with distance of over 5,000km 100% exemption from the first to third year (Landing, Parking, Lighting fee) 50% exemption from the fourth to fifth year New routes exemption for first year 100% exemption for second year 50% exemption for third year 30% * The routes with distance of over 5,000km 100% exemption from the first to third year (Landing, Parking, Lighting fee) 50% exemption from the fourth to fifth year Added frequencies exemption for first year 50% exemption for second year 30% exemption for third year 20% * There are also incentives from local government. Please discuss with the city office for details. The contact number is listed on the last page. Incentives by local governments(gangwon-do) International(Chartered plane operators) : 2~4 million KRW(per flight) International(Travel Agencies) : 10.0 USD per person Application process - Travel agencies are to submit the application for incentives to the local government - Incentives will be offered based on the application review 22

Airport Charges User Charges Type of Charges International Flight Up to 50 tons (per ton) USD 4.69 Landing charge Lighting charge Aircraft parking charge Apron usage charge From 51 to 100 tons (per ton of excess) Over 100 tons (per ton of excess) Per lighting (fixed charge) Up to 50 tons (per ton) From 51 to 100 tons (per ton of excess) Over 100 tons (per ton of excess) Vehicle(1day) Equipment(1day) USD 5.63 USD 6.75 USD 42.86 USD 1.22 USD 1.05 USD 0.84 USD 0.4/ton USD 0.6/ton Passenger charges Paid by the passenger on ticket USD 12,0/flight 23

CONTACT LIST

Yangyang Airport Contacts Type Department Phone Note Flight services/office/ check-in counters +82-33-740-7312 toto23002@airport.co.kr General Landside Operations Team, Yangyang Airport Security areas +82-33-740-7316 chg1016@airport.co.kr Electronic installation +82-33-740-7335 gyeong@airport.co.kr Communication equipment installation Airside Operations Team, Yangyang Airport +82-33-740-7332 dskim@airport.co.kr Moving passageways +82-33-740-7320 phin69@airport.co.kr Incentives General Landside Operations Team, Yangyang Airport +82-33-740-7312 toto23002@airport.co.kr 25

Airport Partners Type Department Phone Note Flight service registration (irregular) +82-44-201-4210 - Flight service registration (regular) International Air Transport Division, Ministry of Land Infrastructure, Transportation +82-44-201-4210 Northeast Asia +82-44-201-4216 Southeast Asia Ground services KAS +82-33-672-7027 www.kas.co.kr Incentives Tourism Marketing Division, Gangwon Province +82-33-249-2784 www.provin.gangwon.kr 26