Lotte Group Gets OK to Build 2nd Theme Park

The Lotte Group has received the government’s green light to begin building its second “Lotte World” theme park in Shincheon-dong, Seoul.

“The project had been pending for too long. We will promptly carry out the plan as soon as the government makes an official announcement,” a top Lotte source said yesterday.

The direction of the runway of Seoul Airport in Seongnam, located in the vicinity of the construction site that will be home to the main 112-story tower of “Lotte World II,” will be adjusted around three degrees. On the condition that Lotte shoulders the cost of the adjustment under a regulation, the government will approve the construction and make it official as early as this month.

Since the builder must undergo a five to six-month long administrative process that includes gaining permits from the Seoul Metropolitan Government and other government bodies, construction is projected to begin in the middle of next year even if official approval comes this month.

If completed as scheduled, the main tower of Lotte World II will be the highest building in the world.

Taipei 101 at 509 meters is the world’s tallest skyscraper, followed by the 492-meter Shanghai World Financial Center, which also has 101 floors. The main tower of Lotte World II is expected to be one of the world’s 10 tallest buildings when taking into account those under or slated for construction.

In a phone interview with The Dong-A Ilbo, Jang Byeong-soo, a top executive at Lotte’s policy headquarters, said, “The group’s plan is to launch construction and complete it as soon as possible for the sake of reducing opportunity cost.” We believe construction can be completed four to five years after groundbreaking.”

Construction is slated for completion by 2013 or 2014.

The Lotte Group estimates the construction cost at 1.5 trillion (1.1 billion U.S. dollars) to two trillion won (1.5 billion dollars).

The project is expected to create 2.5 million new jobs a year over the scheduled five-year construction period, and the theme park “Lotte World 2” will employ 23,000 after completion.

The Construction and Economy Research Institute of Korea said that if Lotte spends two trillion won (1.5 billion dollars) to build the steel frame construction, it will bring 4.84 trillion won (3.75 billion dollars) in a production inducement effect for industries such as mold and reinforcing rod manufacturing.

Lotte said the theme park will attract 20 to 30 percent more foreign tourists to generate more than 200 million dollars in foreign currency revenue.

The new park will also enhance the brand value of Seoul and the conglomerate.

swon@donga.com