Critical juncture for PyeongChang to avoid snowballing debt

A brand-new ice hockey stadium is currently under construction in Gangneung for the 2018 PyeongChang Winter Olympic Games. It costs 107.9 billion won (approx. 99.91 million U.S. dollars) for construction but the venue will only to be torn down after the Winter Olympics ends, mainly because the stadium cannot be maintained by the small alpine city with a population of 200,000. Additional cost for demolition is estimated at 100 billion won (approx. 92.6 million dollars). Mokdong Ice Rink in Seoul can be used as the venue for Winter Games at the expense of 20 billion won, which will help the local government save a lot of money. Speed skating track, another stadium to be built from scratch in Gangneung, requires 131.1 billion won for construction. Taeneung International Skating Rink in Seoul is a good alternative to host the game, at relatively cheaper cost of 40 billion won. Amid controversy over destruction of the environment, the downhill ski track to be built in Jeongseon costs 219 billion won for construction and restoration. If Muju resort that hosted 1997 Winter Universiad is used as the venue, the total expense would be around 30 billion one.

During the recent visit to Korea, IOC Coordination Commission Chair Gunilla Lindberg and PyeongChang Organizing Committee President Cho Yang-ho announced at a press conference that “the current venue plan will be maintained.” However, Lindberg stressed a condition that the organizing committee must make it clear about how to utilize the stadiums afterwards. IOC’s recent principle is to maximize legacies of Olympic Games and minimize costs where feasible.

If the PyeongChang Winter Olympics that spends up more than 12 trillion won (approx. 11.11 billion dollars) from the state coffers is recorded as a representative case of the Winter Olympic Games in debt, it would be a tragic shame for the nation and Gangwon Province. The province that needs to provide funds more than 700 billion won will end up in a lot of debt and the burden would be passed to the citizens in the province, resulting in financial challenges to the future generations. Construction has started belatedly, two and half a year later than the original ground-breaking schedule, for these six stadiums to be newly built up and the current progress rate is around 10 percent. It would be realistic to stop construction now and find a new solution.

It is not realistic to host 2018 Winter Olympics with Japan, but hosting the games in other domestic cities can be a good exit strategy. March of 2015 is the timeline that the IOC wants to finalize whether or not to host Winter Games in other cities including other nations. President Park Geun-hye said a firm "no" to the IOC’s offer to host Winter Olympics with Japan in December last year. The government and POCOG need to make a decision as to whether host the games in other cities in Korea. Gangwon province, local lawmakers and POCOG president Cho must think carefully about what the best solution would be for the nation and region, and show responsible attitude in making the decision.