"Not Once Has Gangwon-do Said It Would Not Bear Guarantee Debt"
"Guarantee Debt Repayment and Rehabilitation Application Are Separate... Differences to Be Coordinated and Announced Soon"
"GJC Shareholding Does Not Exceed 50%, Audit Not Possible, Work Status Report Not Received Either"
"GJC Notified of 1200% Performance Bonus Payment... No Report of 300% Prepaid"
Gangwon Province Governor Kim Jin-tae is answering questions about recent issues at a press conference with reporters at the provincial office on the morning of the 7th. [Gangwon Provincial Office]
[Asia Economy Reporter La Young-cheol] Kim Jin-tae, Governor of Gangwon Province, reaffirmed the fulfillment of debt obligations regarding the Gangwon Jungdo Development Corporation (GJC) rehabilitation application, stating, "As I have mentioned several times before, Gangwon Province will continue to make efforts to fulfill the guaranteed debt obligations. We have already allocated the budget and are making every effort to persuade and obtain approval from the Gangwon Provincial Council," and emphasized, "Gangwon Province has never declared a default on the GJC guaranteed debt."
On the 7th, Governor Kim held a press conference at the Gangwon Provincial Government press room and said, "I want to clarify the facts. As all reporters know, I have never declared a default. Regarding the so-called 'default' declaration, I believe this is about the fifth time I am addressing this. I have never told the reporters covering Gangwon Provincial Government that Gangwon Province would not bear the guaranteed debt burden," emphasizing this point.
He continued, "If you look at the recording of the first problematic press briefing on September 28, legally, since the guarantee contract was signed, there is no way to legally escape the obligation. Even if rehabilitation procedures begin, Gangwon Province does not automatically get released from the guaranteed debt burden. I have said all this," he added.
He further stated, "As a local government head, I mentioned this as part of efforts to prevent losses in any way possible, and I clearly said that Gangwon Province cannot be exempted from guarantee responsibility. Please understand that this was part of the maximum effort made within the scope of legal and administrative authority," he said.
Governor Kim also said, "I am also a legal professional. How can one escape after signing a guarantee contract? If there is such a way, please teach me. I have even said this," and added, "There is related content in the official letter sent to I-One First on September 30, two days after the 9.28 briefing. You can check it. Please ensure that no further reports based on incorrect facts are published," he requested.
Official Letter from Gangwon Province Requesting Cooperation on GJC Rehabilitation Application Decision Sent to Iwon Jeilcha [Gangwon Province]
He especially emphasized, "Continuously spreading market anxiety based on the premise that I said things I never said does not help Gangwon Province nor the entire financial market of our country."
He added, "I ask for your cooperation so that Gangwon Province will no longer have to provide additional explanations on this matter, and so that there will be no need to request corrections for erroneous reports," reiterating his request.
He also expressed his position regarding communication with GJC CEO Song Sang-wook since taking office as governor.
Governor Kim said, "If you ask whether communication is going well, I have a lot to say, but despite GJC being an institution invested by Gangwon Province, due to regulations such as the shareholding not exceeding 50%, audits were not conducted, and we could not properly receive work status reports," he lamented.
He continued, "Even when requesting data submission through the responsible department, I have received many reports that it was difficult to obtain proper data. In conclusion, it seems difficult to say that communication has been very smooth," he said.
He also drew a line regarding former Governor Choi Moon-soon's claim that "GJC is a profitable and sound company."
Governor Kim stated, "Whether it is a profitable company is something they (GJC and former Governor Choi) acknowledge themselves. Since they admitted a deficit of 41.2 billion KRW, Gangwon Province had no choice but to judge that there is a possibility of a larger deficit," he revealed.
Regarding the rehabilitation application date, he said, "The rehabilitation application has not been made yet, but we plan to proceed with the process," adding, "We are trying to coordinate differences with stakeholders to apply for rehabilitation. We plan to announce a detailed plan soon."
He reiterated the position that "guaranteed debt repayment" and "rehabilitation application" are separate matters.
Governor Kim said, "After debt repayment, whether rehabilitation application is made or any other method is used to normalize GJC or Legoland, it is separate from repaying the guaranteed debt, so please do not worry too much about that. Legally and economically, these are completely separate issues, and the province plans to obtain approval from the provincial council and repay the guaranteed debt by December 15," he stated.
Regarding questions about GJC's prediction of about 1200% performance bonuses in March this year and already paying 300%, he said, "As far as I know, there has been no specific report to Gangwon Province on exactly how much performance bonus they have paid or plan to pay, the sale status of provincial land, or contracts," and added, "Now that the administration has changed, they should fully submit materials and explain the situation, but I deeply regret that this has not happened."
Earlier, on March 24, GJC reportedly notified that it would pay 1200% performance bonuses to executives and employees during a current affairs meeting with then-Governor Choi Moon-soon, and on March 28, the first 300% of the performance bonus was paid.
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