Jungmun complex sale aborted

The Korea Tourism Organization (KTO) said Monday that it has failed to sell the Jungmun Tourist Complex on Jeju Island through an open bid.

It said three private companies submitted a bid to take over the country’s most popular tourism complex through December. Its sales manager, Samil PricewaterhouseCoopers, screened the three bidders and found that two of them did not meet minimum requirements.

As a result, the bidding process was suspended as at least two businesses are required to take part in the sales.

“Unfortunately, two of the three companies that expressed interest in acquiring the complex were disqualified. We will restart the bidding procedure again in February,” a KTO official said.

The state-run promoter of Korean tourism had already tried to dispose of the Jungmun Complex in August last year. But the sale foundered with only one bidder expressing interest.

The KTO has been attempting to hand the complex over to a private player for the past few years under the Lee Myung-bak administration’s drive to privatize public enterprises and dispose of their assets.

But the majority of KTO employees oppose the sale, insisting the government should inject fresh money into the complex to improve its tourism-related facilities and let organization continue to operate it.

Additionally, Jeju residents have been protesting the planned sale, arguing it will harm their interests and provide undue favors to private-sector players. Currently, residents on the resort island can play golf at Jungmun Country Club and enjoy other amenities at discounted prices.