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Gangwon Province

There is a growing argument about who should foot the bill for constructing the venue for the opening and closing ceremonies at the Pyeongchang 2018 Olympic Winter Games, which will be held in Gangwon Province.

After Gangwon Province agreed to cover half of the cost of building the venue,

the Gangwon Provincial Assembly and a committee of city and county councils hosting the Olympics have been actively petitioning the central government to increase support, even broaching the possibility of giving up their bid for the games.

Following deliberations with the Ministry of Culture, Sports and Tourism and the PyeongChang Organizing Committee for the 2018 Olympic and Paralympic Winter Games (POCOG), Gangwon Province announced on Nov. 18 that the three parties had agreed for the central government to cover half of the cost of building the venue and for the Gangwon Province and its organizing committee to cover the other half. Construction is expected to cost 66.2 billion won (US$60.12 million).

Gangwon Province had been planning to only cover 25% of the construction cost (16.5 billion won), but the upshot of deliberations with the organizing committee is that it may end up paying as much as 16.6 billion won more, doubling the originally planned price tag.

Gangwon Province had been asking the government to cover 75% of the cost (49.6 billion won), which is the level stipulated by the special law for the Winter Olympics.

However, the government had rejected this request, countering that the venue for the opening and closing ceremonies is not subject to the special law because no competitions are held there. The government said it could only cover 30% (19.8 billion won) of the cost, which is the subsidy portion the government provides for international competitions.

In the bid file submitted to the International Olympic Committee (IOC), the Pyeongchang Olympics organizing committee was committed to setting up facilities for the event, including sites for the opening and closing ceremonies. But with the economy in a slump, it had trouble finding private investors. As the nearing construction deadline compounded the funding woes, Gangwon Province ended up biting the bullet and taking on construction and management for the opening and closing ceremony venues.

Gangwon Province’s decision to take on half the funding for the venues triggered an outcry, with the provincial assembly and chairmen from the three candidate sites (Pyeongyang, Gangneung, and Jeongseon) broaching the possibility of turning down the hosting altogether. On Nov. 17, they held an emergency meeting at the Alpensia Resort in Pyeongchang to urge the government to earmark more support for the 2018 games.

“The Pyeongchang Olympics organizing committee needs to build the opening and closing ceremony values as the original plan said,” they insisted.

“If our demands aren’t met, we’re willing to give up the Games,” they added.

The Gangwon provincial assembly, which is in charge of reviewing the budget for the games, has hinted it might hold off on an examination.

“Who’s going to take responsibility for the increased debt that Gangwon Province shoulders when the state support is cut?” asked Lee Ki-chan, head of the assembly’s economic construction committee.

“Unless we get some clear answers from Governor Choi Moon-soon, we’re going to postpone reviewing the Olympics budget,” Lee warned.

By Park Soo-hyuk, Gwangwon correspondent

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