Busan's Only Zoo ‘Samjeong The Park’ Completely Halted from Reopening This Year Due to Banyan Tree Fire
The only zoo in Busan, 'Samjeong The Park', aimed to reopen in the first half of this year, but it seems reopening will be difficult since Samjeong Corporation has filed for corporate rehabilitation.
Samjeong Corporation, the operator of Samjeong The Park, has recently experienced a tragic incident involving a fire at the 'Banyan Tree Hotel' in Busan that resulted in significant casualties, with 6 fatalities. The management crisis has compounded the situation further.
Samjeong Corporation Files for Corporate Rehabilitation... Intensifying Management Crisis
On February 27, Samjeong Corporation applied for corporate rehabilitation at the Busan Rehabilitation Court. The company, along with its subsidiary Samjeong E&C, is burdened with over 250 billion won in uncollectible receivables due to the construction market downturn and rising prices, facing a severe liquidity crisis.
In particular, the uncertainty regarding the recovery of remaining construction costs due to the Banyan Tree Hotel fire has been a significant cause of the worsening management situation. The company stated, "The additional financing from financial institutions has been completely halted, exacerbating the management crisis."
As a result, the reopening of Samjeong The Park is also expected to become more challenging. There is growing interest in how the company's rehabilitation process will unfold and the potential for future recovery in management.
Negotiations Between Busan City and Samjeong Corporation Halted Due to Fire Incident
The city of Busan has been negotiating with Samjeong Corporation to aim for the reopening of Samjeong The Park before Children's Day on May 5. As per the plan, Samjeong Corporation was to fund the refurbishment of facilities, and Busan was to prepare infrastructure improvements and promotional strategies for the zoo's vicinity. However, all discussions have been halted due to the recent fire incident at the Banyan Tree Hotel.
A Busan city official stated, "It is burdensome to pursue matters related to a company that has caused significant casualties," adding that they intended to reflect the necessary budget for the reopening in the March supplementary budget, but it has been put on hold." This situation is significantly affecting the reopening of Samjeong The Park.
Samjeong The Park Closed for 5 Years… Ongoing Legal Dispute with Busan City
Samjeong The Park has been closed since April 2020. Samjeong Corporation opened the zoo in 2014 but has faced continuous operating deficits, formally requesting Busan City to purchase the zoo site for 50 billion won.
However, Busan City rejected this request, citing that there are legal rights involved. In response, Samjeong Corporation filed a lawsuit against Busan City.
Busan City won in the first and second trials, and Samjeong Corporation is currently appealing to the Supreme Court as of January 2023. This case is currently pending in the Supreme Court, and Busan City plans to review the reopening of the zoo after the Supreme Court ruling.
Over 500 Animals, Annual Operating Cost of 200 Million Won… Uncertain Future
Currently, Samjeong The Park houses over 500 animals of about 120 species, including elephants, giraffes, tigers, lions, and leopards. Approximately 15 keepers work to manage them, and the annual maintenance cost is around 200 million won, which is borne by Samjeong Corporation.
Busan City plans to discuss the reopening of Samjeong The Park again after the Supreme Court ruling. However, due to the fire at the Banyan Tree Hotel and the management deterioration of Samjeong Corporation, the uncertainty regarding the future situation has increased. These factors are likely to significantly impact the reopening of Samjeong The Park.
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