Hajungdo Island, a site for Legoland Korea, in Chuncheon, Gangwon Province. (Yonhap)
CHUNCHEON, Aug. 2 (Korea Bizwire) — Chuncheon’s Legoland project is finally recovering from various business obstacles and gaining speed towards completion as the Gangwon Jungdo-developments Corp. (GJC), an investment arm of the Gangwon Province, and STX Construction Co. managed to agree on the issue of proceeding with the construction project.
According to Gangwon Province on Thursday, GJC decided to replace Hyundai Engineering & Construction Co. with STX as the new subcontractor to set up Legoland’s infrastructure.
GJC plans to terminate its original contract with Hyundai E&C upon mutual consent. GJC also plans to designate STX for the construction of parking lots, an archaeological park, and landscaping.
If STX lacks the capacity to carry out these projects, GJC will offer different construction work allowed within the scope of law.
GJC and STX will sign a separate property sales contract for the 58,688㎡ of land for the resorts.
STX reportedly plans to carry out a 300 billion won (US$250 million) project on the site. In return, STX will put a stop to all litigation against GJC on damage reparations and lien claims.
Once the payments for the construction are complete, the construction site for Legoland will be delivered to Hyundai E&C.
GJC has been working with STX to lead the Legoland construction project.
However, when British-based Merlin Entertainments, the operator of Legoland, decided to make a direct investment in the project, GJC went through a rebidding process and selected Hyundai E&C as the new lead for the Legoland project.
STX has since been preparing to file a lawsuit against GJC until they reached a final settlement and agreed to turn over the Legoland construction site to Hyundai E&C.
M. H. Lee (mhlee@koreabizwire.com)
