Mirae to finance W1tr for Yeosu resort development

A consortium led by Mirae Asset Financial Group and UK-based investment firm Castlepines clinched a deal to finance more than 1 trillion won ($830 million) to build an oceans tourism resort complex at Gyeongdo in Yeosu, South Jeolla Province, Mirae Asset Global Investments said Monday.

Park Hyeon-joo, chairman of Mirae Asset, signed an investment contract with South Jeolla Province Gov. Lee Nak-yon and Yeosu Mayor Ju Cheol-hyeon at the southwestern province’s office, the asset management company said.

The consortium is to acquire existing tourism facilities and businesses at Gyeongdo and build a six-star luxury hotel, a theme park, a water park, a condominium, villas and offshore cable cars.

Sixty percent financing will be completed by 2024, and the rest by 2029.

“If the company fails to finance 1 trillion won by 2029, it will pay 3 percent of the investment money (to South Jeolla Province) as an investment delay compensation fee. This shows Mirae Asset’s strong will in investment,” Mirae Asset Global Investments said in a statement.

South Jeolla Province expects that the consortium’s investment will create about 15,000 jobs and generate economic values in the region up to 1.7 trillion won, without giving a time frame.

Yeosu said it attracted more than 13 million tourists in 2016 due to synergies created from the Yeosu World Exhibition venue and the Suncheonman National Garden.

Sometimes called Korea’s Warren Buffet, Park recently vowed to put Mirae Asset’s top priority in investment this year.

Last year, the group‘s brokerage Mirae Asset Securities acquired KDB Daewoo Securities for 2.32 trillion won. Currently, Mirae Asset Daewoo Securities is the largest brokerage in the country. 

By Kim Yoon-mi (yoonmi@heraldcorp.com)