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Legoland Korea Developer’s Default Flags Property Risks

  • Borrower missed payment on 205 billion won loans for project
  • Event may dent mood toward property-related debt: Samsung Sec.
Visitors at Legoland Korea in Chuncheon, South Korea.

Visitors at Legoland Korea in Chuncheon, South Korea.

Photographer: SeongJoon Cho/Bloomberg
Updated on

A missed debt payment by the developer of Legoland Korea theme park adds to difficulties faced by the nation’s real estate market already weakened by surging interest rates.

The amusement park opened in May just as turmoil in global debt markets made it much pricier for Korean borrowers including developers to refinance debt. Commercial paper repackaging 205 billion won ($144 million) of loans for the Legoland Korea project wasn’t paid on the maturity date of Sept. 29, according to backers of the project.