Chinese construction firm Guangzhou R&F Properties Co. Ltd. has reportedly fired the work force of its Korean subsidiary, Tianli Korea Construction, laborers who were working to build Incheon’s Midan City Resort Complex.
The integrated resort and casino development was known as Caesars Korea Resort Complex until January, when Caesars Entertainment sold its 50 percent interest to Guangzhou R&F.
According to a report by Korean media outlet Joongbu Ilbo, then cited in Inside Asian Gaming, 30 employees of Tianli Korea Construction were dismissed in late March when Guangzhou liquidated the subsidiary.
However, it is expected that development of Midan City Resort Complex will still resume in the coming weeks with Guangzhou R&F to assume direct responsibilities for its construction.
The change comes barely a week after Korea’s Ministry of Culture, Sports and Tourism granted a 12-month extension to the construction deadline of the IR, considerably less than the three-year extension Guangzhou R&F had requested after acquiring Caesars’ stake in January.
First started in September 2017, construction work on Midan City Resort Complex was halted in February 2020 after Tianli was unable to cover KRW30 billion (US$27 million) in costs due to Caesars ceasing any further investment.
The Joongbu Ilbo report suggests Guangzhou R&F is now poised to proceed with the development directly.
A company representative said, “The procedure to liquidate the corporation will take time, but we are first adjusting the requirements by conducting an interview with the employees to cancel the contract. It has nothing to do with the Midan City project.”
