Dongbu Construction Unpaid 13.5 Billion Won for Legoland Construction... "Concerns Over Subcontractors' Financial Difficulties"

Chuncheon Legoland Tower Observatory / Photo by Yonhap News

[Asia Economy Reporter Noh Kyung-jo] The Legoland incident in Gangwon Province is spreading to the construction industry. Dongbu Construction has raised concerns about the potential bankruptcy of partner companies due to not receiving approximately 13.5 billion KRW in payment for the Legoland theme park construction on Jungdo Island in Chuncheon City on time.

Dongbu Construction announced on the 24th that although it completed the infrastructure construction for the Legoland theme park, it has not received 13,581,280,000 KRW in payment and has requested payment from Gangwon Province.

Previously, in December 2020, Dongbu Construction signed a contract with Gangwon Jungdo Development Corporation (GJC), established by the province for the Legoland project, and carried out infrastructure construction such as roads, residential land development, and water and sewage connections until last month. A total of 27 companies participated in this project, including Dongbu Construction, six partner companies, and 20 local partner companies from Chuncheon, Wonju, and Gangneung supplying materials, equipment, and manpower.

Out of the total contract amount of approximately 53 billion KRW with GJC, Dongbu Construction has received 39.4 billion KRW so far. The payment deadline specified in the contract was the 11th of this month, which has already passed by 13 days. Dongbu Construction requested the remaining payment on the 27th of last month but is currently uncertain when it will receive it. The amount Dongbu Construction needs to pay to partner companies is about 4 billion KRW.

Dongbu Construction stated that due to the surge in raw material prices and oil prices causing financial difficulties in the construction industry, if it does not receive the remaining payment from GJC, it will be difficult to pay partner companies. It urged, "Considering the nature of the construction and the financial difficulties of partner companies, we hope the payment will be made promptly."

In response, the province has been reluctant to take action, stating that since GJC issued the construction order, the responsibility for payment lies with GJC. However, as the province is the largest shareholder of GJC, it said it would prepare measures within the scope of moral responsibility.

Meanwhile, the task force composed of Dongbu Construction and partner companies plans to hold a rally in front of the provincial government office on the 25th to urge payment.

This content was produced with the assistance of AI translation services.