The shadow of the PyeongChang Olympics legacy... Loss of '40.7 billion won' in 4 stadiums over 7 years
After the 2018 Pyeongchang Winter Olympics, the post-management costs of the province's four Olympic stadiums greatly exceeded operating profits, resulting in a cumulative deficit of 40.7 billion won over 7 years.
Quick Look
- After the 2018 Pyeongchang Winter Olympics, the cumulative deficit of the province's four Olympic stadiums over the past seven years was found to have reached 40.7 billion won.
- Ban Tae-yeon, a member of the Gangwon Province Assembly, called for the development of effective financial measures and a plan to share responsibility at the national level.
AI-generated summary
Why It Matters
After the 2018 Pyeongchang Winter Olympics, issues regarding post-use plans and maintenance costs for major stadiums in the province have been continuously raised.
Provincial assemblyman Ban Tae-yeon "There is an urgent need to prepare fiscal measures and a national level burden sharing plan"
(Chuncheon = Yonhap News) Reporter Park Young-seo = After the 2018 Pyeongchang Winter Olympics, the cost of post-management of the four Olympic stadiums in the province greatly exceeded operating profits, resulting in a cumulative deficit of 40.7 billion won over 7 years.
Gangwon-do lawmaker Ban Tae-yeon (Gangneung 3, Democratic Party of Korea) pointed out in an administrative audit of the Gangwon Development Corporation on the 12th that it is urgent to prepare effective financial measures and a plan to share responsibility for follow-up management at the national level.
According to Rep. Ban, the cumulative operating revenue of the four Olympic facilities, including the Sliding Center, Gangneung Hockey Center, Gangneung Speed Skating Stadium, and Pyeongchang Sports Park, from 2019 to 2025 is 10.597 billion won.
However, management costs amounted to 51.327 billion won, resulting in a cumulative loss of 40.73 billion won.
This amounts to an average annual deficit of approximately 5.8 billion won.
Over the past seven years, the profits earned from operating these facilities amounted to only 20.6% of management costs.
The cumulative loss over 7 years by facility was KRW 14.08 billion (35%) for the Sliding Center, KRW 11.96 billion (29%) for Pyeongchang Sports Park, KRW 10.28 billion (25%) for Gangneung Hockey Center, and KRW 4.41 billion (11%) for Gangneung Speed Skating Stadium.
Rep. Ban pointed out, “After the Olympics, post-Olympic use plans were researched twice in 2019 and 2024, but because the utilization plans changed frequently depending on the results of the service, consistent policy promotion was not achieved.”
He continued, “Last year, we implemented a sports tourism platform construction service for four facilities in Pyeongchang, and we plan to apply for new government funds of 2 billion won next year, but it is unclear whether we will continue to secure government funds, and the target is limited to the Pyeongchang facilities.”
Rep. Ban said, “Olympic facilities have a structure that will inevitably incur significant maintenance costs in the future,” and urged, “We need to estimate maintenance costs and financial burden for each facility over the next 5 to 10 years.”
What to Watch
AI outlook — possibilities, not facts
Promoting application for new national funding of 2 billion won next year
Likely · Within months
Open Questions
- Will a plan to share follow-up management at the national level actually be established?
- What is the exact amount of maintenance costs expected over the next 5 to 10 years?
