New Silkroad says Jeju project stalled due to financing delays

New Silkroad says Jeju project stalled due to financing delays

New Silkroad Culturaltainment said its project to develop an IR on Jeju Island in South Korea remains stalled due to project finance delays.

The development, known as Glorious Hill, was approved for development last year. The IR is planned for a 1.3 million sq.m site, a half an hour drive from Jeju’s international airport. The resort will consist of five-star hotels, with about 1,000 rooms, MICE facilities, a spa, retail, villas and condos, according to the company’s website.

Meanwhile, the company’s Megaluck casino on the island has been suspended due to the Covid-19 crisis. New Silkroad said it’s been focusing on cost control measures, including reducing payroll. It didn’t say how many jobs had been cut. 

In a filing with the Hong Kong Stock Exchange, the company said revenue for the six months to end June dropped by 56.7 percent to HK$49.6 million. It posted an after tax loss of $43.5 million, compared with a restated $9.7 million loss the prior year.