Legoland Korea Resort, which operates a theme park and hotel in Chuncheon, Gangwon Province, has fallen into a state of capital impairment just three years after opening, unable to withstand ongoing deficits. The park's geographically isolated location from the Seoul metropolitan area and its lack of attractions for adults, with most facilities focused on young children, are cited as key limitations that have significantly contributed to visitor numbers falling short of expectations.

Although it initially drew attention as Korea's first global theme park, its association with the so-called "Legoland crisis"-a real estate project financing (PF) default incident originating in Gangwon Province-also negatively impacted its image. Legoland maintains that it plans to attract more visitors and improve profitability through additional facility investments. However, as visitor numbers continue to decline and performance worsens, many expect that improving its financial structure will not be easy.

According to last year's audit report submitted by Legoland to the Financial Supervisory Service's electronic disclosure system on September 4, the company's total capital for the period stood at minus 100.4 billion KRW, indicating capital impairment. Accumulated deficits reached 191.5 billion KRW, surpassing its paid-in capital of 90.5 billion KRW. This figure includes a net loss of 135 billion KRW for last year, combined with 56.5 billion KRW in unappropriated retained losses from the previous year.

Location isolated from the metropolitan area
Lack of adult amusement rides
Visitor numbers fall short of expectations

Negative image also influenced by real estate project financing crisis originating in Gangwon Province

Accumulated deficits since opening in 2022
Last year's total capital -100.4 billion KRW

In May 2022, LegoLand Korea officials held a welcoming event for visitors to the theme park in conjunction with the opening of Legoland. Provided by Legoland

Operated by Merlin Entertainments of the United Kingdom, Legoland opened in May 2022 on Hajungdo (Jungdo), an island in the middle of Uiam Lake in Chuncheon, with a total area of 280,000 square meters (about 85,000 pyeong). As the tenth Legoland in the world, it was the largest in Asia at the time. Its status as the first global theme park to be established in Korea drew significant attention regarding its potential for success.

However, since opening, the park has never turned a profit and continues to struggle. Revenue dropped from 62.2 billion KRW in the first year to 49.4 billion KRW the following year, and then to 38 billion KRW last year. Operating losses also continued, totaling 6 billion KRW, 20 billion KRW, and 19.7 billion KRW over the same period. Net losses grew from 11.1 billion KRW to 28.9 billion KRW, eventually exceeding the 100 billion KRW mark.

The Legoland project cost a total of 300 billion KRW, with Merlin providing 220 billion KRW. Legoland Korea raised additional funds by selling park assets-including movable property and real estate within the resort-worth 80 billion KRW to Gangwon Jungdo Development Corporation, then immediately leasing them back. Under the agreement, if Legoland's annual revenue exceeds 40 billion KRW, Gangwon Jungdo Development Corporation receives 3% of the rental income as dividends. In addition, Gangwon Province agreed to provide the land for Legoland free of charge until May 4, 2072, with the possibility of negotiating an extension for up to 50 years thereafter.

At the time of opening, Legoland set an annual visitor target of 2 million people. However, actual visitor numbers have reportedly fallen far short of this goal. According to data released in February by Yoon Minseop, a Chuncheon city council member from the Justice Party, the number of annual visitors after the park opened in May 2022 was 653,991 through December of that year, 632,871 in 2023, and 494,618 in 2024, showing a downward trend.

However, Legoland has not disclosed specific visitor numbers except for the announcement that 1 million people visited in the first year, which it attributed to the global operator's policy.

Legoland's poor business performance was also influenced by the negative image surrounding the theme park after the "Legoland crisis" became a focal point in September 2022, when Gangwon Province Governor Kim Jin-tae mentioned plans for Gangwon Jungdo Development Corporation, which was in charge of Legoland's development, to file for corporate rehabilitation proceedings.

Other limitations include its unfavorable location far from Seoul, a lack of attractions that appeal to adults, and the fact that it is an outdoor facility with operational restrictions during the rainy season, periods of extreme heat, and winter. These factors have been cited as reasons for its lack of competitiveness as a theme park. In fact, reviews posted on online communities and social networking services (SNS) frequently mention that "it is not close to the metropolitan area, so a one-day trip requires significant time and money," and "there is a lack of content for family visitors compared to the price."

원본보기 아이콘

It appears unlikely that Legoland will withdraw from the Korean market in the immediate future. According to the agreement, if Merlin ceases commercial operations within five years of Legoland's opening, Gangwon Jungdo Development Corporation can require Legoland to repurchase the resort assets it acquired at a predetermined price.

Legoland stated, "Our goal is to return to profitability by diversifying content, expanding ticket sales channels, and increasing external marketing efforts in order to continue as a going concern. We are working to improve operating profit and loss through monthly and quarterly performance management and cost structure improvements, and are also planning to secure additional funding through further borrowing." As part of these efforts, in April, the park introduced the world's first Ninjago-themed roller coaster, "Spinjitzu Master," at a cost of 20 billion KRW. It is also expanding its infrastructure by offering a "Summer Pass" that allows unlimited entry to the hot-water pool and the park during the summer season (August 2 to September 7). Since last month, Lee Sungho, CEO of Coex Aquarium-which was acquired by Merlin-has also been serving as CEO of Legoland, preparing for a major organizational overhaul.

A Legoland representative said, "Theme parks require significant initial investment in facilities, and overseas Legoland parks that opened earlier only began to show results after five years. While we cannot disclose specific numbers, indicators such as visitor numbers and sales have begun to turn upward this year as a result of introducing new rides and events." The representative added, "We plan to fulfill our initial promise to invest an additional 100 billion KRW in the theme park and hotel by 2027, with the goal of making Legoland a landmark of Chuncheon, while continuing to seek ways to improve profitability."