Late last week we heard about difficulties that have emerged between the province and JCC, the developer of the Ora Tourism Complex.

A major sticking point is JCC’s refusal to follow a request by the province to guarantee their project plan by depositing 330 billion won in the province’s bank account.

Todd Thacker has more on this story.

The Ora Tourism Complex is set to occupy 3.5 million square meters of land in the (오라동) Ora-dong neighborhood of Jeju City and focus on housing and convention facilities.

[slug] Price tag: 5.2 trillion won, 65% developer-owned capital

The cost of construction will total some 5.2 trillion won.

According to the developer's initial plan, 1.8 trillion won, or 35 percent, would be covered by the sale of housing units.

Another 3.3 trillion won, or 65 percent, would be made up of developer-owned capital.

[slug] Committee formed in 2017 to verify developer funds

In light of the substantial sum involved, the province made further inquiries and in 2017 organized a committee to verify that developer had the required capital.

[slug] Committee asked JCC to deposit \330B

It subsequently requested a 330 billion won deposit be placed in the province's bank account. That's 10 percent of the funds cited in the developer's plan.

[slug] Deposit deadline missed on June 30

The committee had set June 30 as the deadline for the deposit, but that date has since passed.

[slug] Developer says committee's request is ‘unjustified’

According to the province, the developer reaffirmed its commitment to proceed with the development project at a working level meeting held in early June.

But the developer refused to pay the deposit saying the committee's request is unjustified.

[slug] Developer keeps silent about possible compromise

Governor Won Hee-ryong has since softened his stance and suggested that his office would consider alternatives proposed by the developer.

The developer, however, has refused to comment.

Following the failed deadline, the next step is for the committee to resume its investigation into the developer’s financials.

Recording
Park Jae-gwan / Provincial official
The June 30 deadline was not kept so we will review the documentation and the developer's willingness to cooperate with us. After consulting with committee members, we will decide when to resume the investigation.
<씽크:박재관/제주특별자치도 관광지개발 팀장>
"일단 6월 30일까지 기간이 완료되는 시점에서 사업자의 최종 의지도 확인하고 서류도 검토해서 자본검증위원회 개최 시기 등을 위원들과 협의해 진행할 예정입니다."

[Reporter] Todd Thacker
[Camera] Ko Moon-su

Meanwhile, the developer has insisted that the committee’s mandate and requests are not legally binding.

As it stands, if the developer fails to prove the viability of its capital reserves, it is unlikely that the Ora Tourism Complex project will proceed smoothly.

Todd Thacker, KCTV