"The context of the statement refers to the contract content stating that Gangwon-do assumes full guarantee debt in case of bankruptcy"
"The claim that there was no prior consultation with BNK Investment & Securities is also a one-sided assertion by BNK"
[Asia Economy Reporter La Young-chul] Gangwon Province stated on the 5th, "We strongly regret the remarks by writer Jin Joong-kwon and Democratic Party lawmaker Lee Yong-woo on a radio program, in which they labeled Governor Kim Jin-tae's explanation regarding the Gangwon Jungdo Development Corporation (GJC), responsible for the Legoland infrastructure development, filing for rehabilitation as 'lies.'"
According to Gangwon Province, on the 3rd during the CBS Radio program 'Park Jae-hong's One Round Match,' writer Jin Joong-kwon asked lawmaker Lee Yong-woo, "Governor Kim Jin-tae said he never said he wouldn't pay, and that the contract was even written to pay everything. Doesn't he say that? What does that mean?"
In response, lawmaker Lee said, "That is a lie. We confirmed and checked that there was prior consultation, so we sent an official letter to BNK Savings Bank, the lead manager, to verify. There was no prior exchange of content at all. Also, according to the contract, if rehabilitation procedures begin, it is treated as a default under EOD. That is clearly specified."
Regarding this exchange, Gangwon Province explained, "Governor Kim Jin-tae never stated, as quoted by writer Jin Joong-kwon, that 'the contract was even written to pay everything.' Considering the context of the remarks, it appears he was referring to the contract clause in the investment agreement that 'in case of bankruptcy, Gangwon Province assumes full guarantee debt responsibility.'"
Furthermore, regarding Governor Kim's statement at a press briefing on the 25th of last month, "We have never declared default, nor can we declare it. (The province) cannot escape guarantee debt," the province explained, "He was referring to Article 250 of the Debtor Rehabilitation Act and the investment agreement, indicating that the 'rehabilitation application' does not affect the 'guarantee debt obligation.'"
They also emphasized, "Governor Kim Jin-tae has never declared default or made remarks implying 'we will not repay the debt.'"
The province added, "At the press conference announcing the rehabilitation application on September 28, Governor Kim clearly stated, 'We have a legal guarantee contract, and we will not evade the legal obligations under it,'" emphasizing again, "'Declaring default' and 'judging that default has occurred' must be strictly distinguished."
They also rebutted the claim that "there was no prior consultation with BNK Investment Securities" as "a unilateral assertion by BNK."
The province explained, "'There was no prior exchange of content with BNK Investment Securities before the rehabilitation application announcement' is a unilateral claim by BNK," adding, "Until the day before the rehabilitation application announcement, Gangwon Province consulted with BNK, and explained that the rehabilitation application plan was not intended to abandon the obligation to repay guarantee debt."
They further explained, "Gangwon Province only announced the rehabilitation application plan and has not yet entered rehabilitation procedures. Even if an EOD (Event of Default) occurs, if rehabilitation procedures have not started, there should have been sufficient time to consult with Gangwon Province."
Gangwon Province expressed strong regret again, stating, "The inaccurate citation of the governor's remarks and the unilateral reflection of BNK's claims in the response led to the conclusion that the governor's remarks were 'lies.'"
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
