USKR Price Negotiations Finally Bear Fruit
(July 14, 2011) 

Korea Water Resources Corporation-USKR PFV settle for KRW 504 billion for lot
Construction of Global Theme Park to start in 2012, scheduled for completion by 2016

– Gyeonggi Province announced on July 7th that the Korea Water Resources Corporation and the USKR Project Financing Vehicle have finally come to an agreement on lot pricing. This will silence the rumors about cancellation and put the project back on track. Construction the Global Theme Park will start in 2012 and it is slated to open by 2016. Bird’s-eye-view of USKR (GNews Plus)

The Universal Studio Korea Resort project, the world’s largest global theme park, scheduled to be built in Songsan Green City of Hwaseong, is finally making progress now that the lot price has been set.

Gyeonggi Province officially announced on July 7th that the Korea Water Resources Corporation and the USKR Project Financing Vehicle have finally come to an agreement on the lot pricing.

The local government also announced that the lot was settled to be sold at KRW 504 billion, as the professional assessment suggested. KRW 150 billion will be paid upon the signing of the main contract, while the remaining KRW 354 billion will be paid with 5.5% interest over the course of ten years according to the agreement. There were rumors that the project was on the brink of being canceled, but construction will begin in 2012 and be completed by 2016.

The USKR lot agreement was great news for Gyeonggi Province and the central government, since both had tried to mediate the matter. Governor Kim Moon-Soo said, “I would like to thank the central government, National Assembly Member Kim Seong-hoe, Hwaseong Mayor Chae In-Seok, other related organizations, and most of all the Korea Water Resources Corporation and the USKR PFV for finalizing the deal. Along with Hwaseong City we are planning to ask the central government for KRW 100 billion in administrative and financial support.”

The Ministry of Culture, Sports and Tourism also expressed their support for the USKR project, while Hwaseong Mayor Chae In-Seok said, “The USKR project will renew Hwaseong’s image and create many new jobs. We are ready to invest to ensure USKR’s smooth progress.”

The USKR project’s main leader is Lotte Asset Development Co., Ltd. CEO Kim Chang-Kwon said, “The USKR in Hwaseong will be twice as large as the Universal Studio in Singapore, and the largest project of its kind in Asia. POSCO Engineering & Construction Co., Ltd. and Lotte Group will invest KRW 3 trillion so that it opens before 2016, when Shanghai Disneyland is scheduled to open.”

Governor Kim Moon-Soo and National Assembly Member Kim Seong-hoe played a significant role in achieving the lot deal. Governor Kim has personally promoted the project in a drive to attract direct investment from US Universal and Lotte Group. He also requested assistance from the Ministry of Culture, Sports, and Tourism and the Ministry of Land, Transport, and Maritime Affairs when the negotiations started to stall. National Assembly Member Kim Seong-hoe also served as a mediator to bring about the settlement.

The USKR project will employ 11,000 people directly as well as an additional 100,000 indirectly. Gyeonggi Province has been pursuing this project since 2007. The project involves the construction of a theme park, city walk, water park, theme hotel, premium outlet retail center, condominiums, and golf courses on the 4,352,819 square meter lot just east of Songsan Green City. Lotte Development and eight other companies, including USKR PFV, are the main project investors, with total investment amounting to approximately KRW 2.9 trillion.

Once USKR is complete, it will attract around 15 million tourists each year from China and Southeast Asia, generating considerable impetus for

the development of the nation’s service and tourism industry.

A government official said, “Thanks to this agreement Korea will become the fifth member of the G20 to have a theme park, along with the USA, Japan, France, and China. The USKR Project and the West Coast General Development Project are in good hands.”

-GNews Plus News | Nam Gyeong-u echo2008@kg21.net 

http://gnews.gg.go.kr/news/news_detail.asp?number=201107071554066060C052&s_code=C052