Main venue of 2018 PyeongChang Winter Olympics sold for 710 bln won

CHUNCHEON, South Korea, June 24 (Yonhap) -- The main venue of the 2018 PyeongChang Winter Olympics in South Korea was sold to a local firm for 710 billion won (US$626 million) after its state-run operator suffered from a hefty debt.

Gangwon Province said it signed an agreement to sell the Alpensia Resort in PyeongChang, some 180 kilometers east of Seoul, to KH Gangwon Development, a special purpose company owned by local electronics parts maker KH Feelux Co.

After due diligence, the deal is expected to be finalized by Aug. 23, according to the provincial government.

The Alpensia Resort served as the main location of the first Winter Games held in South Korea. Its facilities include a ski resort, a golf club, a water park and a hotel. They were used as outdoor sports venues, media centers and International Olympic Committee (IOC) offices during the PyeongChang Games.

The resort broke ground in 2004 and opened in 2009 after injecting more than 1.6 trillion won. However, poor sales of its condominiums and operating expenses resulted in more than 1 trillion won in debt for Gangwondo Development Corp., the province's property developer that runs the resort.

Gangwon Province paid back a total of 623.2 billon won with taxpayer money, but the remaining 772.8 billion won debt has been burdening the province's financial health.

The province tried to sell the resort numerous times after the Ministry of Interior and Safety in 2011 ordered it to improve its financial soundness.

kdon@yna.co.kr
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