Gangwon Province decided to repay the Gangwon Intermediate Development Corporation (GJC) guarantee debt earlier this year as the money market rapidly froze due to the default (debt default) of ABCP from Legoland.
Gangwon Deputy Economy Governor Jeong Gwang-yeol held a briefing at the Gangwon Provincial Office on the morning of the 27th and said, "We have been continuously reviewing effective ways to alleviate the burden on the financial market, including creditors, and have been closely consulting with the government, including the Ministry of Strategy and Finance." We have decided to repay 25 billion won, the full amount of the guarantee debt, by December 15th."
“This decision was made in advance of consultation with the government, including the Ministry of Strategy and Finance,” he added.
"Gangwon-do feels responsible for stabilizing the financial market, and promises to communicate closely with the government and deal with it faithfully," he said.
Previously, Governor Kim Jin-tae announced on the 21st that he would fulfill the guarantee obligation due to GJC's inability to repay by January 29, 2023 at the latest.
The province took a debt guarantee when GJC issued an ABCP worth 250 billion won through BNK Investment & Securities in 2020 to promote the Legoland theme park creation project.
The 25 billion won ABCP of I-One Cheil Car, a special purpose corporation established by GJC to finance the construction of Legoland, failed to repay on the 29th of last month, which was due on the 29th of last month, and thus went into bankruptcy on the 4th of this month.
(Photo = Yonhap News)