– 15 Universal Studios Korea partners sign framework agreement on January 19th
– Heralded as the largest Universal Studios theme park in Asia, construction is slated to commence at beginning of 2011 for opening in early 2014
– Universal Studios Korea Resort project in full swing through active participation of Lotte Group and POSCO E&C
– Project highlights the achievements of Gyeonggi Province in attracting foreign investment

On January 19th, representatives of 15 domestic and foreign entities, including Gyeonggi Governor Moon-Soo Kim, Universal Parks & Resorts Chairman and CEO Thomas Williams, Lotte Group Vice Chairman Dong-Bin Shin, and POSCO E&C President Dong-Hwa Chung signed the framework agreement and agreed to raise capital for the Universal Studios Korea Resort project at the Lotte Hotel Seoul in Sogong-Dong.

In accordance with the agreement, the project financing vehicle (PFV) comprised of 15 partners, including Lotte Asset Development and POSCO E&C, will raise capital according to their respective shares. Lotte Asset Development and POSCO E&C are the largest shareholders with holdings of 26.7% and 24.4%, respectively, while other entities hold the remaining shares.

Gyeonggi Province Theme Park Division Director Yoo-Myun Song said, “This agreement signifies that the USKR project, which had previously experienced issues in raising capital, is now on a stable footing. The PFV shareholders and public entities are strongly committed to the project, and so we believe land prices can be fixed in the first quarter of this year and construction can begin early next year.”

The Universal Studios Korea Resort, to be located on a 4,352,819 square meter site in Songsan Green City of Hwaseong City, Gyeonggi Province, has a project cost of approximately KRW 3 trillion and will be the largest Universal Studios theme park in Asia. This project is led by the USKR PFV, which will be responsible for construction and operation of the theme park. Scheduled to open in 2014, a water park, theme hotel, condos, premium outlet, golf course and other facilities are also planned for the resort.

Project takes off after Governor Moon-Soo Kim persuades Lotte Group to join

The USKR project had experienced some delays in the past but was recently able to gain momentum after Lotte Group joined in as a new partner. Upon successfully attracting the Universal Studios project in November 2007, Gyeonggi Governor Moon-Soo Kim met with many leading companies to secure investment; in the process, Governor Kim met with Lotte Group Vice Chairman Dong-Bin Shin in April of last year. Lotte Group, which seeks to raise its value as a global brand, was persuaded to participate by Governor Kim’s assurances of full-fledged support for the theme park. Lotte Group Vice Chairman Shin was present at the signing ceremony and demonstrated the commitment of Lotte Group to the project by personally signing the agreement.

The finalization of the Korean government’s Metropolitan Transportation Improvement Plan is another major reason behind the increased momentum of the USKR project. In order to enhance the accessibility of the USKR site, the Ministry of Land, Transport and Maritime Affairs recently announced the Improvement Plan, stating that the Wonsi-USKR section of the New Ansan Line will be completed earlier than previously planned to match the opening of the resort in 2014. In order to form a comprehensive transportation network, the main USKR access road, National Road 77, will be expanded to 4-6 lanes, and the construction of a 15.6 km (4-8 lane) road linking the Songsan Green City district to Chunchun-dong, Suwon City, will be completed by 2013.

Culture, Sports and Tourism Minister In-Chon Yu was present at the signing ceremony and expressed “ongoing support for this project, which represents a major opportunity to develop the national tourism industry.” Many key members of the government, including Public Administration and Security Vice Minister Chang-Sup Chung, Land, Water and Construction Vice Minister Do-Youp Kwon, National Assembly Members Sung-Hoi Kim and Bo-Hwan Park were also there to express commitment at the national level.

Fifth nation out of G20 nations to have a global theme park, the largest in Asia

Although there are many kinds of theme parks around the world, experts consider only Universal Studios and Disneyland to be true global theme parks, and their economic benefits are enormous. For this reason, the attraction of a global theme park is on the national agenda of many countries. However, it is also one of the most difficult types of business to attract, with only the US, Japan, France and China having such theme parks. Universal Parks & Resorts operates in Los Angeles and Orlando, USA, and in Japan, while a park in Singapore is currently under construction. 

Governor Kim explained the significance of the USKR project, saying that “through Universal Studios Korea Resort, Korea will become the fifth nation out of the G20 nations to have a global theme park. It will not only contribute greatly to increasing Korea’s national image but also become the focal point of the West Coast economic tourism belt by successfully attracting tourists from China and other nations.” Governor Kim went on to say, “We are preparing various plans to provide new jobs for Koreans as the job creation effect of the resort is expected to amount to more than 40,000.”

Representatives from the 15 participating entities were present to sign the investment agreement and promised to exert their full efforts for the success of the USKR project. In addition to the Gyeonggi Governor and Universal Parks & Resorts Chairman and CEO, the representatives included: the Mayor of Hwaseong City, the President of K-water, the President of the Gyeonggi Urban Innovation Corporation, the President of the Gyeonggi Tourism Corporation, the President of the Hwaseong Urban Innovation Corporation, the CEO of Lotte Asset Development, the President of POSCO E&C, the President of Ssangyong E&C, the President of KCC Engineering & Construction, the President of STX Construction, the President of USKPH, the President of POSCO ICT (formerly ‘Posdata’), the Executive Director of Korea Investment and Securities, and the CEO of USKR PFV.

Universal Parks & Resorts Chairman and CEO Thomas Williams said at the ceremony that “the USKR project will play a leading role in the growth and development of the Korean tourism industry.” He noted that the world-renowned movie director, Steven Spielberg, who is a UPR consultant, is expected to participate in the USKR project. Mr. Williams has been with Universal Parks & Resorts for over 30 years and is recognized as a pioneer of the theme park industry.

Source: Gyeonggi Province Theme Park Division, Tel : +82-31 249-2641