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(Photo = CJ) |
[Alpha Biz= Reporter Kim Minyoung] Gyeonggi provincial government has terminated the agreement with CJ Live City, an implementer, regarding the Goyang K-Culture Valley creation project.
The decision by Gyeonggi Province to terminate the agreement with CJ LiveCity comes as a result of the cancellation of the 'Regional Development and Mutual Growth Agreement for the Promotion of Hallyu Content Industry and Tourism Complex Activation' between Gyeonggi Province, Goyang City, and CJ LiveCity. K-Culture Valley, located on a 326,400 square meter site in Janghang-dong, Ilsandong-gu, Goyang City, involves an investment of 1.8 trillion won (as of June 2020), aimed at creating a K-pop arena, studios, theme parks, and commercial, accommodation, and tourism facilities.
On July 1st, Gyeonggi Province announced that it had notified CJ LiveCity of the termination of the agreement on June 30th. Kim Hyun-gon, Vice Governor of Gyeonggi Province's Economic Affairs, explained at a press conference held at Gyeonggi Provincial Office that "the project implementer made demands that were difficult to accommodate, such as reducing delay penalties, making agreement impossible."
CJ LiveCity halted construction last April due to cost increases, notification of inability to supply large-scale electricity, and delays in public projects to improve the water quality of the Hallyu River. The province plans to proceed with the project through public development.
However, CJ responded through a statement, stating that "Gyeonggi Province continued to demand the resumption of arena construction after imposing indefinite delay penalties, without considering the conditions for improving the project recommended by the reconciliation committee."
CJ further stated, "It is difficult to accept the continued imposition of indefinite delay penalties for resuming arena construction in a situation where development itself is impossible due to delayed power supply," and announced the termination of the project agreement following the notification of the termination by Gyeonggi Province.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
