SKorean plan for Macau rival collapses

SKorean plan to turn village into Macau rival collapses as Kempinski fails to raise money

Associated Press

SEOUL, South Korea (AP) -- South Korea's Incheon city says a $290 billion plan to transform a fishing village into a rival to the Chinese gambling enclave of Macau has collapsed.

Incheon Free Economic Zone official Jung Mi-hyun said Thursday luxury hotel operator Kempinski AG failed to raise a promised $40 million by the end of July.

Kempinski's Korean unit KI Corp. is the largest shareholder in Eightcity Co., the consortium. Korean Air Lines Co. is the second-largest.

Incheon said the six-year-old contract with Eightcity is cancelled. It will seek a new developer.

Incheon and Eightcity said last year that they would raise 300 trillion won by 2030 to remake the 30 square kilometer town near Incheon International Airport into a tourism, shopping and gambling center to lure China's middle and upper classes.

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