Attention is focused on whether the ambitious project, Mars International Theme Park, led by Shinsegae Group Chairman Jung Yong-jin, can navigate through the political fog of impeachment. There are concerns in the industry that if the approvals are delayed, obtaining financing could also become challenging.
According to the relevant industry on the 13th, the Mars International Theme Park project is currently undergoing the tourism district designation approval process in Gyeonggi Province. Shinsegae aimed to receive approval for the tourism district designation by the end of the year and to obtain approval for the tourism district development plan from Gyeonggi Province by the end of next year, with the goal of opening in 2029. However, the prospects for approval by the end of the year have become unclear in the current impeachment political climate.
The Mars International Theme Park project, named 'Star Bay City,' is a key initiative driven by Shinsegae Group Chairman Jung Yong-jin and is the largest development project in the group's history in terms of investment. The plan involves creating a complex resort that incorporates a theme park, water park, and Starfield facilities in the western reclaimed land of the Dongcheok district in Songsan Green City, Hwaseong City. Currently, Shinsegae Property is leading the project.
The issue is that securing approximately 9.5 trillion won in investment is closely tied to the approval of the tourism district. Given that Shinsegae plans to break ground in 2026 with a goal of opening in 2029, significant investments nearing trillions annually must be fully allocated to this single project. Although Shinsegae initially announced the project cost was 4.6 trillion won, recent documents for community hearings disclosed by Hwaseong City indicated that the project expenses have nearly doubled.
Shinsegae Group's financial situation is strained due to poor performance from major subsidiaries. As a result, the industry anticipates that Shinsegae will secure investment funds through the development of nearby residential districts. Plans include developing 3,000 apartment units and 116 theme park village units near the theme park, though this too has effectively been put on hold due to the impeachment political climate.
The Mars International Theme Park project has already encountered three failures related to funding issues. The Korea Water Resources Corporation, the landowner, partnered with the Universal Studio Korea Resort (USKR) consortium in 2007 to promote a Korean version of Universal Studios, but the project was scrapped the following year due to funding difficulties arising from the global financial crisis.
In 2010, the Lotte Group entered the project, but issues arose during land price negotiations, leading to its cancellation in 2012. The project was later selected as a presidential campaign promise by the Park Geun-hye administration in 2015, with the Lotte Group, Daewoo Engineering & Construction, and Chinese capital participating in renewed efforts. However, disputes concerning land price negotiations and financing led to its abandonment. Subsequently, Shinsegae was selected as the sole bidder in a 2019 project proposal process and, in 2021, acquired land and buildings in Hwaseong City for 870 billion won.
Some speculate that Paramount, which decided to collaborate on the theme park, may reconsider contract provisions. Paramount regards the IP (intellectual property) licensing agreement as investment-related, indicating that the business decision could be influenced by the political uncertainty surrounding the impeachment and the unstable situation in Korea. Paramount's theme park projects have been pursued in various global locations, including Dubai, London, and Spain, but all have been cancelled due to financial issues or local opposition.
An industry insider said, 'Given the delays in the approval process due to the impeachment political climate, if a new administration takes office, uncertainty will increase, piling on challenges for Shinsegae.'
A Shinsegae Property official stated, 'The contract with Paramount involves only obtaining the IP license and is unrelated to securing investment funds,' adding, 'All procedures, including approvals, are proceeding as planned.'