[Courtesy of LongRunn International Group]
SEOUL -- A South Korean project to develop a resort complex on reclaimed land near Incheon International Airport, South Korea's main gateway west of Seoul, hit a snag after a Chinese investor breached a contract.
In a wide area of reclaimed land on Yeongjong Island, home to Incheon International Airport, the Incheon city government has envisaged an ambitious blueprint to create Midan City, a free city combined with residence, commerce, business, education, culture, tourism and leisure together with the aim of "Beyond Hong Kong".
China's real estate and property developer LongRunn International Group signed a deal in February with the developer of a free economic zone in the region to purchase a space of 76,000 square meters for 87.1 billion won (81.5 million US dollars) in Midan.
The Chinese company agreed to make an initial investment of one trillion won for the construction of a resort complex called "LongRunn Diamond City" as part of the project that requires a total investment of four trillion won.
However, LongRunn International lost its right as the main contractor because it failed to make a down payment of 4.3 billion won by a designated date this month, according to Incheon Free Economic Zone (IFEZ) authorities in charge of supervising the project.
IFEZ accused LongRunn International of having changed its words and breaking faith with South Korean partners.
IFEX commissioner Kim Jin-yong said earlier that the contract with LongRunn International would help the island speed up the construction of an integrated resort complex capable of matching Las Vegas and Macau. Paradise City, a sumptuous casino and hotel complex, is still under construction after it opened its foreigner-only hotel-casino in April last year.
reporter
Lim Chang-won
cwlim34@ajunews.com
