Gyeongsangbuk-do to restructure tourism projects amid 115.9 billion won deficit

Gyeongsangbuk-do province is planning a major restructuring of its ‘Three Major Cultural Zones’ tourism project following significant financial losses. Between 2010 and 2021, approximately 2.5 trillion won was invested to establish 46 tourism facilities across 22 cities and counties to promote Confucian, Silla, and Gaya cultures.

Despite the massive investment, the project has faced chronic deficits. In 2023, 37 out of the 46 sites recorded losses, totaling 25.3 billion won for the year. The cumulative deficit from 2020 to 2023 has reached approximately 115.9 billion won. Major deficit-making sites include Yeongju Seonbi World, Andong Korea Culture Theme Park, and Gyeongju Hwarang Village.

Experts identified several causes for the losses, including high maintenance costs, lack of diverse content, unprofessional management, and a fragmented administrative system. In response, the province will launch a structural diagnosis service this year to analyze the profitability, location, and competitiveness of all 46 sites. Based on the results, the province will implement measures such as downsizing, repurposing, merging, or selling underperforming facilities, while focusing support on competitive sites and attracting private investment.