Merlin Entertainment Group, which decided to invest directly in the theme park project of Legoland in Chuncheon, has recently signed a contract with a construction company to launch the project, but it has not disclosed a detailed investment plan and other business plans.
Gangwon Province has decided to make additional investments in line with Merlin's disclosure of its business plans, raising concerns over possible disruptions to its future business schedule.
According to the "Kangwon Do Min Daily (Kado.net)" on July 15, total business expenses for the Legoland project are estimated to be worth 300 billion won. Since the Legoland project improved its business structure entirely with Merlin's direct investment, Merlin delivered documents containing roadmaps and investment financing plans to the Gangwon Jungdo Development Corp. through Legoland Korea in early April.
Merlin, however, has not presented a detailed road map for the construction of Legoland until recently, and has not revealed the timing of the construction and investment plan even after signing a construction contract with H Construction on July 4.
The Gangwon Jungdo Development Corp. reportedly expected Merlin to hold a vision declaration ceremony instead of a ground-breaking ceremony, but Merlin responded that it would not do that, either.
As Merlin has carried out detailed business plans behind closed doors, some are saying that it may be difficult again to carry out such projects as construction delays.
The biggest concern is financing the project. Merlin plans to introduce 90 billion won with Legoland Korea's capital for its 220 billion won financing plan and the remaining 130 billion won as a long-term loan under the Foreign Investment Promotion Act. Merlin earlier deposited 5 billion won in January.
It, however, does not disclose the size and timing of its investment in the remaining 215 billion won in capital. Under the agreement with Merlin, the Jungdo Corp. has pledged to invest 80 billion won and invested 20 billion won in advance. In response, the corporation plans to suspend support for the remaining 60 billion won if Merlin does not disclose its investment plan.
Meanwhile, Chuncheon civic groups argued that the city council should implement the right to conduct an administrative investigation and reprimand those involved in the delay of the construction of Legoland.
Chuncheon Civic Society Group Network on July 9 called on the council to immediately enforce its right to conduct an administrative investigation into Legoland.