Incheon IR developer seeking foreign operators to save stalled project

September 15, 2022 Korea Earnings & Filings

The developer of a stalled integrated resort project in Incheon, South Korea, that was previously owned by Caesars Entertainment is reportedly looking for a new partner to invest capital and operate the resort and casino business in order to help complete construction.

According to local media outlet eDaily, the Midan City development has now reached crisis point with construction having been stalled for more than two years and developer R&F Korea (RFKR) unable to pay its construction company the KRW28 billion (US$20 million) required to get the project back up and running.

It is also facing timeline pressure, having already failed to meet conditions imposed by Korea’s Ministry of Culture, Sports and Tourism when it was granted a previous extension to the construction deadline.

eDaily said this week that R&F Korea is now relying on foreign operators to save the day but was having trouble locating any interested parties. The project was proposed to become Incheon’s third integrated resort alongside Paradise City, opened in 2016, and Mohegan’s Inspire Korea, due to open in 2023.

As previously reported by IAG, RFKR received a 12-month extension to its construction deadline earlier this year on the proviso that it increase its total project investment by 5% and resume development – stalled since February 2020 – within the first half of 2022.

Not only has RFKR failed to do so, but even if it resumed immediately it cannot meet the current 17 March 2023 deadline given the project is only 25% complete.

If completed, Midan City is slated to include a foreigner-only casino, 751 hotel rooms, a theater and a convention space among other attractions and facilities.