Gangwon-do "LegoLand GJC Guarantee Debt Fully Early Repaid by December 15" (Comprehensive)

"Early Repayment Decision of Guarantee Debt Is a Direct Consultation Matter Between Governor Kim Jin-tae and Deputy Prime Minister for Economy Choo Kyung-ho"
Gangwon-do to Prepare Supplementary Budget Next Month... GJC Rehabilitation Application to Proceed as Scheduled

Kang Kwang-yeol, Deputy Governor for Economic Affairs of Gangwon Province, held a briefing at the Gangwon Provincial Office on the morning of the 27th and announced, "We have decided to repay the full guaranteed debt of 205 billion won owed by Gangwon Jungdo Development Corporation (GJC) by December 15." Photo by Ra Young-cheol

[Asia Economy Reporter La Youngcheol] Gangwon Province announced on the 27th that it will fully repay the 205 billion KRW guarantee debt of Jungdo Development Corporation (GJC), which was responsible for the Legoland infrastructure development project and was scheduled to be repaid early next year, by December 15.

Jung Gwang-yeol, Deputy Governor for Economic Affairs of Gangwon Province, held a press conference that morning and announced the Legoland 'Guarantee Debt Crisis Resolution Plan' with this content.

Deputy Governor Jung stated, "We have continuously reviewed effective methods to reduce the burden on creditors and the financial market and have closely consulted with the Ministry of Economy and Finance and other government agencies," adding, "The decision to repay the full guarantee debt of 205 billion KRW by December 15 was directly agreed upon between Governor Kim Jin-tae, who is currently on a business trip to Vietnam, and Deputy Prime Minister for Economy Choo Kyung-ho."

To this end, the province plans to hold a special session of the provincial council next month to prepare a supplementary budget.

Deputy Governor Jung also said, "Gangwon Province feels a strong responsibility for financial market stability and promises to communicate closely with the government and respond sincerely."

Regarding the final default of the asset-backed commercial paper (ABCP) related to the Legoland construction, he emphasized, "BNK Investment & Securities processed the default without consulting us while we were in discussions with the securities company."

He added, "Separate from the guarantee debt repayment, the rehabilitation application for GJC will proceed as planned."

Earlier, Governor Kim Jin-tae announced on the 21st that the guarantee debt caused by GJC's insolvency would be fulfilled by January 29 next year.

The province had provided a debt guarantee when GJC issued ABCP worth 205 billion KRW through BNK Investment & Securities in 2020 to promote the Legoland theme park development project.

The ABCP worth 205 billion KRW issued by I-One Jeilcha, a special purpose company established by GJC to raise funds for Legoland construction, failed to be repaid on its maturity date of the 29th of last month and was finally defaulted on the 4th.

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