An integrated resort (IR) project in Incheon, South Korea, is going nowhere fast. According to Inside Asian Gaming, the project, which was once helmed by Caesars Entertainment, is “on the verge of collapse” after failing to meet the requirements for another extension to its construction deadline.
Those requirements included a commitment by developer R&F Korea (RFKR) to increase its total investment in the so-called Midan City resort by 5 percent and also resume construction in the first half of 2022—a deadline that’s already passed. The project stalled in March 2020, with the onset of the Covid-19 pandemic.
Korean newspaper Kyeongin reported that RFKR is unlikely to win another extension of its development timeline beyond March 2023 after failing to meet those conditions, which were handed down as part of a previous extension granted in March of this year. RFKR clearly cannot meet the 2023 deadline, as the project is only 25 percent complete.
“In order to complete the project, it is necessary to apply for a re-extension, but the possibility of re-extension is expected to be low as the conditions of the first extension cannot be met,” the newspaper noted.
Complicating matters, Korea’s Ministry of Culture, Sports and Tourism has approved a plan for the US$800 million IR to be financed through foreign direct investment. But RFKR now wants to commit only US$500 million, with the remainder to come from domestic financial institutions.
An official from the ministry was quoted as saying, “Once an application for re-extension is received, it will be comprehensively reviewed regarding the conditions stipulated when the first extension were approved … I informed [RFKR] that if a change is made, it may affect the re-extension.”
Midan City is slated to include a foreigners-only casino, a 751-room hotel, a theater and a convention space, if it should reach completion.
