Seoul’s ‘Dream Hub’ faces collapse as developers admit defaulting on loan


AFP

SEOUL — A US$28 billion real estate project in Seoul was facing collapse on Thursday after developers acknowledged defaulting on a major loan repayment. Yongsan Development Corp. (YDC) missed a Wednesday deadline to pay 5.9 billion won (US$5.4 million) in interest on asset-backed commercial paper worth 200 billion won. “We’ve got into difficulties in raising funds due to the protracted real estate slump,” a YDC spokeswoman told AFP.

The 31-trillion-won “Dream Hub” project, aims to develop a 56-hectare (138-acre) plot in central Seoul into a modern business hub, with shopping malls, hotels, department stores and apartment blocks, as well as a landmark 111-story tower.