'Legoland Secrets Buried in Suspicion'... Can the Democratic Party Uncover the Truth Behind the 'Kim Jin-tae-Triggered Financial Crisis'?

Contract with UK Merlin, Legoland Operator, Includes 'Confidentiality' Clause... Legal Liability for Breach
Gangwon-do: "Disclosure Requires Agreement Among Merlin and Other Third Parties... No Management Rights Over GJC"
Democratic Party Criticizes 'Fact-Finding Investigation' and 'National Audit' Plans as 'Phase Shift to Escape Lee Jae-myung's Judicial Risks'

Park Hong-geun, the floor leader of the Democratic Party, is speaking at the 'Emergency Fact-Finding Investigation Team Meeting on the Financial Crisis Triggered by Kim Jin-tae' held on the 28th at the National Assembly floor leader's office. Photo by Yoon Dong-joo

[Asia Economy Reporter Ra Young-cheol] The Democratic Party of Korea launched an emergency fact-finding investigation team called the 'Kim Jin-tae-Originated Financial Crisis' on the 26th to uncover the truth behind the 'funding market crisis' triggered by the decision to file for rehabilitation of the Gangwon Jungdo Development Corporation (GJC) in Gangwon Province.

The Democratic Party raised suspicions of "deliberate default with political intent" by Gangwon Governor Kim Jin-tae and appointed Assemblyman Kim Jong-min and Assemblyman Oh Ki-hyung as chairman and secretary, respectively.

Gangwon Province fully denied the Democratic Party's allegations, stating "this is not true," but the Democratic Party further declared, "If deemed necessary, we will also push for a national audit."

The Democratic Party launched a full-scale offensive against Governor Kim, saying, "This is a deliberate default incident caused by impure political intentions," "We hope he takes responsibility for the great chaos caused in the economy and financial markets and makes a decision as soon as possible," and "The declaration of default may constitute abuse of authority and breach of trust by Governor Kim."

Although the specific activity plans of the fact-finding investigation team have not been disclosed, conducting a thorough investigation would require reviewing all processes and contract details related to Legoland and publicly revealing the results, which is currently difficult.

Above all, the contract with Merlin, the UK operator of Legoland, includes confidentiality clauses, and violating them would entail legal liabilities.

Gangwon Province Governor Kim Jin-tae is answering questions from reporters after returning through Incheon International Airport Terminal 1 on the afternoon of the 27th. [Yonhap News]

A Gangwon Province official stated, "To officially disclose materials for the fact-finding investigation, the three parties?Merlin, Gangwon Province, and GJC?must consult and all agree. Even the materials held by the province are minimal, and we cannot show them just because someone asks."

Since the basic premise of the agreement is 'confidentiality' and due to legal issues, no party can simply demand to see the documents as if conducting an audit.

Governor Kim also said in previous press conferences, "From the beginning, I stated that I would fulfill the guarantee obligations, and the unexpected situation occurred during the process of convincing that there was no need to worry," but did not disclose specific details related to Legoland.

Jung Kwang-yeol, Deputy Governor for Economy of Gangwon Province, also said at a press conference on the 27th, "Since Gangwon Province does not have management rights over GJC, the debts must all be repaid, making it impossible to properly grasp GJC's specific financial status or cash flow."

Before signing the Legoland MDA, in May 2018, Choi Moon-soon, Governor of Gangwon Province, is presenting a bouquet to John Jacobson, General Manager of Legoland at Merlin, during his visit to Gangwon Province. [Jungdo Headquarters Civic Group]

However, regarding former Governor Choi Moon-soon's claim that "GJC is a profitable company according to its financial statements," he said, "GJC's financial condition is worsening with increasing deficits, and even if all of GJC's assets are sold, the debts cannot be fully repaid. That is certain."

He added, "If Gangwon Province had management rights and could accurately understand the structure, the corporate rehabilitation application for GJC would not have been necessary, and the recent 13.6 billion KRW default incident involving Dongbu Construction's completion payment would not have occurred."

According to Gangwon Province and local civic groups, the Legoland project, which former Governor Choi actively attracted, faced financial difficulties over several years due to the excavation of prehistoric relics, leading the UK Merlin company to inject funds instead.

During the contract drafting process at Merlin's request, it became known that Gangwon Province's profits were significantly reduced, leading to ongoing criticism both inside and outside the province that "former Governor Choi was dragged along by Merlin and pushed the project forward with humiliating 'unfair contracts'."

[Yonhap News]

The Citizens' Committee to Urge the Suspension of Legoland, which wastes taxpayers' money, claimed, "Gangwon Jungdo Development Corporation, a Gangwon Province-funded institution, signed a sales contract for 67,600 square meters of commercial land near Legoland inside the Hajungdo tourist site with two companies for 83.75 billion KRW," and "The province secretly sold provincial land to specific companies without any report to the provincial council or residents."

Except for former Governor Choi and certain stakeholders involved in the Legoland project, no one knows the substantive details, which has led to the spread of various suspicions since the project's inception.

Earlier in June, Kim Ki-seon, chairman of the New Gangwon Province Preparation Committee, only stated regarding the Legoland attraction process that "the contract was made and promoted under unprecedented and unacceptable unfair conditions," avoiding specific remarks.

Although the related details need to be disclosed for accurate understanding, the continuous allegations of 'unfair contracts' and the inclusion of confidentiality clauses have led to criticism that the project was pushed forward recklessly.

Lee Jae-myung, leader of the Democratic Party of Korea, is delivering a greeting at the "Emergency Forum on the Yoon Seok-yeol Government's Economic Disaster, Kim Jin-tae Incident, and Financial Market Crisis Response" held at the National Assembly on the 26th. Photo by Yoon Dong-ju

In this situation, political circles inside and outside are analyzing and criticizing the Democratic Party's announcement of 'fact-finding investigation' and 'national audit' plans as a "phase transition strategy" to escape the deepening political crisis caused by Lee Jae-myung's judicial risks.

This is because the Democratic Party mentioned the funding market crisis caused by Governor Kim while simultaneously demanding the government stop 'opposition suppression' and pursue cooperation.

On the 28th, at an on-site Supreme Council meeting held in Daegu, Democratic Party leader Lee Jae-myung emphasized, "In addition to inflation, exchange rates, and interest burdens, the 'Kim Jin-tae-originated financial crisis' has thrown the funding market into tremendous chaos," and said, "We need a decision to overcome the national crisis through bipartisan politics instead of wasting national capabilities on political retaliation and opposition suppression caught up in political strife."

As Lee's close aides have been successively arrested and testimonies from Yoo Dong-gyu have emerged, accelerating the prosecution investigation amid growing public interest, the Democratic Party is criticized for attempting to shift the focus by highlighting 'livelihood issues' and the 'incompetent government.'

As the fallout continues, calls are growing to thoroughly investigate the Legoland project through fact-finding to transparently inform the public and correct any wrongdoings.

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