Anmyeondo Tourist Site Development Project Faces Another Obstacle... 7 Billion Won Investment Performance Guarantee Deposit Unpaid

On The West Consortium Delays Deposit Payment Twice Due to Construction Market Slump
Province "Preparing Final Decision Including Agreement Termination"

Perspective view of Anmyeondo Tourist Site Development Project / Chungnam Province

The development project of Anmyeondo tourist site, a long-cherished project of Chungnam Province, is facing difficulties.

According to Chungnam Province on the 2nd, the OnTheWest Consortium, the developer of the Anmyeondo tourist site, has failed to pay the investment performance bond of 7 billion KRW despite two extensions of the payment deadline.

In 2022, the province signed a business agreement with the OnTheWest Consortium for the development of the Anmyeondo tourist site. OnTheWest includes eight domestic and international companies, including Meritz Securities.

OnTheWest planned to build a theme park, training center, condo, golf course, and more in the Anmyeon-eup area of Taean-gun by 2027.

However, the OnTheWest Consortium failed to pay the 7 billion KRW investment performance bond in June last year, citing the downturn in the construction market. Although the payment deadline was extended once, they still did not pay by December last year, and even after extending the deadline to June this year, the payment was not made.

Accordingly, the province is considering whether to proceed with the project with the OnTheWest Consortium.

A provincial official said, "We are preparing a final decision on whether to terminate the agreement due to non-payment of the investment performance bond or to improve the situation by other means," adding, "A decision will be made soon."

Meanwhile, the Chungnam Province Anmyeondo tourist site development project was designated as a project site in 1991 and pursued through public development until 2001 but was abandoned. Later, in 2006, a private developer was invited through a public contest, and the InterPacific Consortium was selected as the preferred negotiator, but the project failed due to the developer's withdrawal.

In 2016, the Lotte Consortium was selected as the preferred negotiator for the development of District 3, but the qualification was canceled due to project delays. In 2019, a main contract was signed with the developer KPIH Anmyeondo, but the contract was terminated as KPIH Anmyeondo failed to pay the first investment performance bond. After years of stagnation, a new development method was introduced to attract private developers.