Mirae Asset Leads Investment in Development of Ocean Resort in Yeosu

Mirae Asset Financial Group announced on January 9 that a consortium led by the financial group will invest more than 1 trillion won (US$830 million) to build a massive luxury ocean resort complex on the country's southwest coast by 2029. The investment is the largest in the tourism and leisure sectors in the southern part of the country.

The consortium became a priority partner in August 2016 for building the ocean resort complex on Gyeong Island in Yeosu City, South Jeolla Province. In the bidding process, two Chinese equities reportedly vied for the development rights, seeking investment immigration to be granted for the region. The two Chinese equities were seeking to build residential complexes on the island, rather than a tourism complex. Similar to Jeju Island, an investment over a certain amount on Gyeong Island gives the investor residency.

On January 9, Park Hyeon-joo, chairman of Mirae Asset, signed an investment contract with South Jeolla Province Gov. Lee Nak-yon and Yeosu Mayor Ju Cheol-hyeon at the office of South Jeolla Province, according to Morae Asset.

According to the contract, the consortium, which is comprised of Mirae Asset Financial Group and a British equity fund Castlepines Corp, plans to pour 342 billion won (US$284 million) first to acquire existing tourist attractions in Gyeongdo, including a golf course, before making an additional investment of 750 billion (US$622 million) to build a six-star hotel, a water park, condominiums and cable cars connecting the island with the mainland and other amenities. Mirae Asset will be responsible for financing 70 percent with Castlepines providing the rest. 60 percent financing will be completed by 2024, and the rest by 2029.

“If the company fails to finance 1 trillion won by 2029, it will pay 3 percent of the investment money (to South Jeolla Province) as an investment delay compensation fee, which shows Mirae Asset’s strong will in the investment,” Mirae Asset Global Investments said in a statement.

Yeosu City said it attracted more than 13 million tourists in 2016 due to synergies created from the Yeosu World Exhibition venue and the Suncheonman National Garden.

Mirae Asset Securities, the brokerage arm of the group, acquired a 43 percent stake in KDB Daewoo Securities from the state-run Korea Development Bank through a deal worth 2.32 trillion won (US$1.92 billion). With the acquisition, Mirae Asset became one of the largest financial groups in the country.