S. Korea taking steps over default of Legoland theme park financing: finance chief

All News 15:48 October 21, 2022

SEOUL, Oct. 21 (Yonhap) -- Finance Minister Choo Kyung-ho said Friday that the government is taking "necessary measures" regarding a default in project financing for the construction of the Legoland amusement part in Gangwon Province.

Iwon Jeil Cha, a special purpose company established by the Gangwon Jungdo Development Corp. (GJC) to fund the construction of the resort, missed a debt payment of 205 billion won (US$142.3 million) and was finally listed as bankrupt earlier this month, stoking fears of instability in the domestic bond market.

"There has been unease in the short-term market surrounding project financing asset-backed securities, and the authorities are closely inspecting the issue," Choo said during a parliamentary session.

"We've been taking various countermeasures to stabilize the market after figuring out the situation. We will continue to carry out measures deemed necessary," he added.

The financial authorities have sought to tap into the bond market stabilization fund to provide liquidity.

The amusement park opened in the city of Chuncheon in the province, 75 kilometers northeast of Seoul, in May. The developer GJC is 44 percent owned by Gangwon Province.