UPDATE 1-S.Korea to start Incheon Airport stake sale- paper

SEOUL, Nov 2 - South Korea plans to pick an adviser this month to sell a stake in state-owned Incheon International Airport Corp to raise up to 3.7 trillion won ($3.1 billion) to finance its expansionary policy, a newspaper reported on Monday.

The Maeil Business Newspaper cited the finance and land ministries as saying that they had reviewed the sale plan last week outlined by consulting and accounting firms, and would soon announce detailed plans based on the proposal.

The newspaper reported that Incheon International Airport would go public and the government would then put a 49 percent stake in the airport up for sale, at 8,000 won to 10,000 won per share according to McKinsey estimates.

But the Ministry of Land, Transport and Maritime Affairs said in a statement no decisions on the stake sale had been made.

"Details of the method, timing and size of the sale will be decided by discussions among related bodies after consultations," the ministry said.

In August 2008, the finance ministry unveiled the stake sale plan as part of an effort to privatise the airport and other state-run companies, without giving a timeframe.

The government also will pick an adviser this month to sell 30-year operating rights for a provincial airport in Cheongju, south of Seoul by the first half of next year, the report added.

($1=1186.1 Won)