Will the construction of the Chuncheon Legoland project be delayed?
Will the construction of the Chuncheon Legoland project be delayed?
  • Kim Min-jee
  • 승인 2019.07.23 12:36
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STX moves to file a lawsuit against Gangwon Province

The Chuncheon Legoland project is in a dilemma over the payment of 60 billion won in Gangwon Province's investment. 
According to "Kangwon News" on July 22, although the Legoland developer Merlin Entertainments demanded 60 billion won in investment from Gangwon Province and the Jungdo Development Corporation by July 22, the possibility of a delay in the construction of the project is being raised as STX, the existing construction company, has decided to press ahead with a lawsuit in case of the deposit of the investment. 

Last week, Merlin asked for the deposit of 60 billion won, the balance of investment by Gangwon Province, for the Legoland development by July 22.

However, STX, an existing construction company, is strongly protesting against the deal, noting that under the situation that the contract with LL Development (currently the Jungdo Development Corporation), which was established last year, is still effective, it would be a breach of contract if the province pays 60 billion won in investment to the new contractor. 

In a related move, STX sent an official letter to the Jungdo Development Corporation on July 18, saying it will take corresponding measures when 60 billion won is deposited.

Bird eye view of Chuncheon Legoland
Bird eye view of Chuncheon Legoland

The situation was caused by the change of the project implementer from LL Development to Merlin under the Chuncheon Legoland Master Development Agreement (MDA) late last year, and the signing of a new contract with Hyundai Engineering & Construction, not STX, the builder that Merlin signed with LL Development.

STX is virtually preparing to file a tens of billions of won lawsuit against the province, citing breach of contract, and is currently engaging in the negotiations with the province.

"STX still manages the site under the authority of the builder, and under the current circumstances, Hyundai Engineering & Construction can never enter the site," an STX official said, stressing, "If the province pays 60 billion won to Merlin, we will consider this as a unilateral notice of cancellation of the contract and take a legal action."

"Merlin requested the deposit on July 22, but we have not made a decision yet," a provincial official said, adding, "We are also continuing to negotiate with STX."

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