The South Korean integrated resort project in Incheon formerly owned by Caesars Entertainment is on the verge of collapse after failing to meet requirements for another extension to its construction deadline, according to local media reports.
Korean newspaper Kyeongin reported this week that developer R&F Korea (RFKR) will struggle to gain an additional extension on its development timeline beyond March 2023 after failing to meet the conditions imposed on its previous extension. This, the local news outlet said, not only included a commitment by RFKR to increase its total project investment by 5% but also stipulated that construction – stalled since February 2020 – must resume inside 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.
“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 Kyeongin report said.
It also reported that RFKR has a different view on how to complete funding for the project than Korea’s Ministry of Culture, Sports and Tourism, which had previously approved a plan for the entire US$800 million IR to be financed through foreign direct investment.
Instead, Kyeongin claims that RFKR now wants to commit only US$500 million with the remaining US$300 million to come from domestic financial institutions.
An official from the Ministry of Culture, Sports and Tourism is 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 foreigner-only casino, 751 hotel rooms, a theater and a convention space.