South Korean Finance Minister Choo Kyung-ho plans to hold an emergency meeting with the country's central bank chief and top financial regulators on Sunday to discuss ways to rein in market jitters stemming from a default on debt linked to the construction of the Legoland theme park.
The session will be held amid increased volatility in the money market following a default on municipal government-guaranteed debt worth 205 billion won ($143 million) raised to fund the construction of Legoland Korea amusement park in Gangwon Province, according to the finance ministry.
It is to bring together Bank of Korea Gov. Rhee Chang-yong; Kim Joo-hyun, the chair of the Financial Services Commission; Lee Bok-hyun, chief of the Financial Supervisory Service; and Choi Sang-mok, senior presidential secretary for economic affairs.
Late last month, Iwon Jeil Cha, a special purpose company established by the Gangwon Jungdo Development to fund the construction of the resort, missed the debt payment. It was then finally listed as bankrupt earlier this month.
In response to growing concerns over a possible credit crunch and market instability, the financial authorities announced a plan to tap into the bond market stabilization fund to provide liquidity.
The amusement park opened in the city of Chuncheon in the province, 75 kilometers northeast of Seoul, in May. (Yonhap)