Multibillion-dollar project to develop Korea's southernmost port city Yeosu may flop

Jin Young-tae and Choi Mira 입력 2021. 9. 24. 14:36 수정 2021. 9. 27. 11:18
글자크기 설정 파란원을 좌우로 움직이시면 글자크기가 변경 됩니다.

이 글자크기로 변경됩니다.

(예시) 가장 빠른 뉴스가 있고 다양한 정보, 쌍방향 소통이 숨쉬는 다음뉴스를 만나보세요. 다음뉴스는 국내외 주요이슈와 실시간 속보, 문화생활 및 다양한 분야의 뉴스를 입체적으로 전달하고 있습니다.

A multibillion-dollar project by Mirae Asset Financial Group to develop South Korea’s southernmost port city of Yeosu is on the brink of a collapse on environmental challenge and regulatory oversight on the funding.

According to sources from the investment banking industry on Thursday, Mirae Asset Financial Group Chairman Park Hyeon-joo has commanded executives to reexamine the Yeosu development project with the possibility of killing the plan altogether after the project has invited complaint from the Yeosu city council and FTC probe.

The financial group announced the 1.5 trillion won ($1.3 billion) infrastructure plan at the end of 2016 for completion in 2022. The project however has been stalemated on allegations for property speculation and illegal funding.

Jeonnam Development Corporation picked Mirae Asset Financial Group as the final winner to carry out the Yeosu development project in 2016. As part of a project to develop a coastal tourism complex in Gyeongdo in Yeosu, the group planned to build an apartment hotel, but it took five years to receive a conditional approval from the city amid opposition from local people complaining about possibility of real estate speculation environmental harms.

The country’s antitrust watchdog probed the group’s affiliates including Mirae Asset Consulting and Mirae Asset Securities over illegal financing allegations. The FTC has been reportedly examining the governance structure of GRD, a special purpose company established by Mirae Asset Consulting’s subsidiary YKD. Mirae Asset holds a 20.5 percent stake in GRD via YKD, and the remaining stake is owned by other partners including Hyundai Engineering & Construction, Hoban Construction and BSG.

[ⓒ Maeil Business Newspaper &, All rights reserved]

Copyright © 매일경제 & 무단 전재, 재배포 및 AI학습 이용 금지

이 기사에 대해 어떻게 생각하시나요?