On November 28, A.D. 2014, Merlin Entertainments, the company that owns and/or manages all of the LEGOLAND® theme parks and LEGOLAND® Discovery Centers around the world on behalf of the Kristiansen family (who founded and own The LEGO® Group) and some other investors announced a partnership would allow for the construction of a new LEGOLAND® theme park in South Korea.[1] [The LEGO® brick entered the South Korean toy market in 1984, and South Korea has become one of the largest markets in Asia for The LEGO® Group. [2]] Nick Varney, Chief Executive Officer (C.E.O.) of Merlin Entertainments, commented, “I am delighted to be able to announce another Asian LEGOLAND Park project. South Korea offers both a developed theme park market and strong LEGO brand recognition. In addition, the city of Chuncheon provides the ideal location, with great transport links and a picturesque island setting.”[3]
“The project is being supported at both the national and local levels, with significant contributions from both Gangwon Province and the City of Chuncheon, as well as a group of Korean investors,” Mr. Varney stated. [4]
“We continue to be excited by the potential opportunity of LEGOLAND parks globally and reiterate our target of opening, on average, a new park every two to three years,” Varney added. [5]
The new LEGOLAND® Korea would be built on the isle of Jung-do in Chuncheon City, Gangwon Province, which would place it a car ride of about one hour from the capital city of Seoul and within a two-hour-long drive of approximately 23,700,000 people. [6] Merlin Entertainments expected to open LEGOLAND® Korea in 2017 and be “opened under the ‘operated and leased’ model” as with LEGOLAND® Japan.[7] Merlin would invest KRW100,000,000,000 (£57,000,000) out of an expected cost of KRW300,000,000,000 (£172,000,000) before the park opened, with the remaining two-thirds coming from “a property company owned by a consortium of local public and private investors.”[8] The plan called for the national, provincial, and municipal governments to pay for the construction of a bridge to the site and provide additional infrastructure. [9]
However, there was a long lull before any more news was forthcoming from Merlin about the construction of this theme park. On January 7, A.D. 2019, Merlin announced an agreement with the Gangwon Provincial Government to build LEGOLAND® Korea in South Korea. [10]
The plan was to build LEGOLAND® Korea on an island identified as “Hajungdo” in that press release in Chuncheon City. [11] The “full-scale theme park resort” would incorporate a “fully themed” LEGOLAND® Hotel when it opened, and “employ 1,600 people,” which would “provide an economic boost to the city of Chuncheon and the surrounding region.” [12] Merlin would both own and operate the resort. At the time, Merlin already owned and operated a SEA LIFE Centre aquarium in Busan.[13] This city is now world-famous due to the South Korean horror film Train to Busan (2016), which was about passengers aboard a high-speed train from Seoul to Busan during the outbreak of a so-called “zombie apocalypse.”
The total cost of building the resort, including the hotel, would be KRW 290,000,000,000 (£148,000,000), of which KRW 80,000,000,000 (£56,000,000) would come from LL Developments, Gangwon Provincial Government’s investment arm. [14] National, provincial, and local governments would pay for the installation of “additional infrastructure adjacent to the resort.” [15]
Merlin’s expectation was that it would be Merlin’s tenth LEGOLAND® Park to open, following LEGOLAND® New York’s “scheduled opening in 2020,” [16] an event that did not ultimately occur until 2021, as mentioned above. Merlin stated it was “also in advanced discussions with third parties about a number of sites for LEGOLAND Parks in China and continues to see opportunity for 20 LEGOLAND Parks around the world, over time.” [17]
The region “already [had an] excellent transportation network,” Merlin continued. “As part of the ongoing relationship, the [South] Korean Government, Gangwon Province and Chuncheon City have already invested in the construction of a new bridge to Hajungdo island and undertaken groundworks on the site. Further retail and complementary leisure offerings are planned for the island’s development.” [18]
The aforementioned Merlin C.E.O. Nick Varney commented, “It’s been long in gestation, but I’m delighted that we are now in a position to move forward with opening LEGOLAND Korea Resort. We know Koreans love theme parks and love LEGO, and together with the Gangwon authorities, we have already established an attractive and well-connected site in Chuncheon. We look forward to accelerating progress with our partners who have contributed significantly with funding and infrastructural support, and to welcoming our first guests to LEGOLAND Korea Resort.” [19]
Mr. Varney added, “We remain excited about the potential of LEGOLAND Parks, the roll out of which is a strategic growth driver for Merlin, and we continue to look at opportunities for further sites around world.” [20]
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At the time of the announcement, in January of 2019, Merlin operated a total of 120 attractions, eighteen hotels and six holiday villages in twenty-five countries that were spread across four continents.[21] The company had 65,000,000 visitors worldwide and employed 29,000 people at the peak of the tourist season. [22] Merlin operated eight LEGOLAND® theme parks with plans for a ninth to open in New York in 2020.[23] The LEGOLAND® Park Operating Group constituted 38% of Merlin’s revenues and welcomes 15,300,000 guests in 2017. [24]
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The Korea Times reported on March 28, A.D. 2022 that LEGOLAND® Korea was scheduled to open on Thursday, May 5, A.D. 2022.[25] However, there was a “soft opening” in March of 2022.[26] That event was known as the “Key Handover Ceremony” and involved Merlin executives and government officials. [27] These included Nick Varney, Chief Executive Officer (C.E.O.) of Merlin Entertainments; John Jakobsen, Chief Operating Officer (C.O.O.) of LEGOLAND® Resorts Group; Choi Moon-soon, Governor of Gangwon Province; Lee Jaesoo, Mayor of Chuncheon City. [28]
“As we gear up towards the official grand opening of LEGOLAND Korea Resort, it brings me immense joy to host today’s Key Handover Ceremony and to meet in person everyone who had helped us in this endeavor, as well as share our hopes and expectations for the future,” stated Mr. Varney. [29]
According to a press release, “During the key hand-over ceremony, Merlin Entertainments’ Group Development Director for LEGOLAND Parks, Ray Dubois, delivered a key made of LEGO bricks to LEGOLAND Korea Resort’s Young Pil Kim, symbolizing the official handover of LEGOLAND Park. LEGOLAND Kid Reporters were also present at the ceremony to celebrate the event.” [30]
After this event, the people in attendance, including Merlin and LEGOLAND® executives and government officials, took a tour of LEGOLAND® Korea’s seven theme areas: Brick Street, Bricktopia, LEGO® Castle, LEGO® Ninjago® World, Pirates Shore, LEGO® City, and MINILAND. [31] Some local families from Chuncheon were able to sample select rides and attractions, such as the Dragon Coaster and Driving School. [32]
LEGOLAND® Korea Resort was the first LEGOLAND® theme park to be built on an island, Merlin related in a press release. [33] Notably, Merlin identified the island as “Jungdo” this time (rather than “Jung-do” or “Hajungdo”). [34]
The press release stated, the island’s “beautiful nature and scenery in Chuncheon City, Gangwon Province, which makes it one of the most beautiful LEGOLAND Resorts to date.” [35] The 28,000-square-meter resort includes the LEGOLAND® theme park with forty rides and attractions and a 154- room LEGOLAND® Hotel catering to families with children between the ages of two-and-twelve.[36]
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A few days before LEGOLAND® Korea was set to open, on April 22, A.D. 2022, Merlin announced the acquisition of The COEX Aquarium in Seoul.[37] Consisting of 180 exhibits and containing 3,000 tons of water, this was the largest aquarium in South Korea.[38] [This was the third major acquisition for Merlin in 2022 as it had earlier acquired the “operations and brand licenses for Cadbury World” in Bournville outside Birmingham in England’s West Midlands from Mondelēz International, Inc. in February and the right to day-to-day management of the ride This is Holland in The Netherlands effective on March 31, A.D. 2022.[39]] Merlin also stated that LEGOLAND® Korea had already had a “soft opening” and would “officially open on Children’s Day” (Thursday, May 5, A.D. 2022.).[40]
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The grand opening for LEGOLAND® Korea Resort occurred, as scheduled, a few months ago, on Thursday, May 5, A.D. 2022. [41] John Jakobsen, C.O.O. of Merlin Entertainments, and Phil Royle, Divisional Director of LEGOLAND® Korea, stood on a platform at the main entrance to theme park, called the Park Portal, to preside over the opening ceremony. [42] This ceremony consisted of two parts, “an entertainment show” and a parade. [43]
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Phil Royle stated, “LEGOLAND Korea is the perfect destination for kids and families, it is greatly meaningful to open our theme park on Children’s Day. It will be the best theme park for anyone looking for an authentic LEGO experience. We do hope everyone who came on the first day of the opening will have an unforgettable and enjoyable experience.”[44]
ENDNOTES
[1] In 1932, the Danish carpenter Ole Kirk Christiansen (1891-1958) founded the toy manufacturing company that was soon to re-named Lego A/S (known in English The LEGO® Group). His son, Godtfred Kirk Christiansen (1919-1995), who oversaw the arm of the company that manufactured plastic toys while his brothers concentrated on the family’s traditional business of making wooden toys, built the original LEGOLAND® theme park in Billund, Denmark. In 2004, when The LEGO® Group was drowning in debt, Ole Kirk Christian’s grandson and Godtfred Kirk Christiansen’s son, Kjeld Kirk Kristiansen (who spells the surname differently), resigned as C.E.O. and appointed someone from outside the family and company to replace him, Jørgen Vig Knudstorp, a former management consultant. In 2005, Blackstone Capital Partners IV, an affiliate of The Blackstone Group, acquired Merlin Entertainments, and Merlin acquired a majority stake in the LEGOLAND® theme parks, while KIRKBI A/S, a holding and investment company that belonged to the Kristiansen family, retained an ownership stake of at or about 30%. In 2010, On June 24, A.D. 2010, CVC Capital Partners, a private equity and investment advisory firm, announced it had made a commitment for funds it advised to collectively acquire a 28% ownership stake in Merlin. As a result of this agreement, KIRKBI A/S would hold a 36% ownership stake, Blackstone would hold a 34% ownership stake, and CVC would hold a 28% ownership stake. Three years later, in 2013, Merlin went public. Dubai International Capital, which had sold the Tussauds Group to Merlin, divested itself of its 18% ownership stake. As of June 27, A.D. 2019, KIRKBI owned or controlled a 29.58% ownership stake in Merlin. The next day, Berkeley Bidco, Limited and the Independent Directors of Merlin Entertainments, plc announced that the Merlin Independent Directors would vote in favor of Merlin being taken private by Berkeley Bidco, Ltd. (“Bidco”). Bidco was a new corporation formed at the behest of the consortium of KIRKBI, Blackstone Core Equity Partners, and CCPIB. [This is the Canadian Pension Plan Investment Board, a Canadian Crown corporation that manages funds in the Canadian Pension Plan (C.P.P.) for approximately 20,000,000 Canadian contributors and beneficiaries.] KIRKBI would have a 50% ownership stake in Berkeley Bidco. The remaining 50% would be owned by Blackstone Core Equity Partners and the C.P.P.I.B. As of 2022, KIRKBI A/S has a 75% stake in Lego A/S (The LEGO® Group) and LEGO® Foundation has a 25% stake.
[2] Merlin Entertainments, press release, “Merlin Entertainments plc announces agreement to open LEGOLAND Korea,” p. 1
[3] Ibid
[4] Ibid
[5] Ibid
[6] Ibid
[7] Ibid
[8] Ibid
[9] Ibid
[10] Merlin Entertainments, press release, “Merlin Entertainments announces agreement to open LEGOLAND Korea,” 7 January, 2019, p. 1
[11] Ibid
[12] Ibid
[13] Ibid
[14] Ibid
[15] Ibid
[16] Ibid
[17] Ibid
[18] Ibid
[19] Ibid
[20] Ibid
[21] Merlin Entertainments, press release, “Merlin Entertainments announces agreement to open LEGOLAND Korea,” 7 January, 2019, p. 2
[22] Ibid
[23] Ibid
[24] Merlin Entertainments, press release, “Merlin Entertainments announces agreement to open LEGOLAND Korea,” 7 January, 2019, p. 3
[25] Lee Hai-rin, “Legoland to open in Chuncheon May 5,” The Korea Times, 28 March, 2022 (https://www.koreatimes.co.kr/www/culture/2022/03/135_326251.html) Accessed 05/07/22
[26] Merlin Entertainments, press release, “LEGOLAND® Korea Resort Holds Commemorative Ceremony Ahead of Opening on May 5th,” March, 2022, p. 1
[27] Ibid
[28] Ibid
[29] Ibid
[30] Ibid
[31] Ibid
[32] Ibid
[33] Ibid
[34] Ibid
[35] Ibid
[36] Merlin Entertainments, press release, “LEGOLAND® Korea Resort Holds Commemorative Ceremony Ahead of Opening on May 5th,” March, 2022, p. 1
See also Merlin Entertainments, press release, “LEGOLAND® Korea has officially opened on May 5 – Children’s Day,” 5 May, 2022, p. 2
[37] Merlin Entertainments, press release, “Merlin Entertainments Expands Korea Operation with Acquisition of The COEX Aquarium in Seoul,” 28 April, 2022, p. 1
[38] Ibid
[39] Merlin Entertainments, press release, “Merlin Entertainments Expands Korea Operation with Acquisition of The COEX Aquarium in Seoul,” 28 April, 2022, p. 1
See also Merlin Entertainments, press release, “Merlin Entertainments and Mondelēz International Announce New Cadbury World Partnership,” 2 February, 2022, p. 2
See also Merlin Entertainments, press release, “Merlin Entertainments Expands Netherlands Operation with Management of This is Holland Experience,” 7 January, 2022, p. 2
[40] Merlin Entertainments, press release, “Merlin Entertainments Expands Korea Operation with Acquisition of The COEX Aquarium in Seoul,” 28 April, 2022, p. 1
[41] Merlin Entertainments, press release, “LEGOLAND® Korea has officially opened on May 5 – Children’s Day,” 5 May, 2022, p. 1
[42] Merlin Entertainments, press release, “LEGOLAND® Korea has officially opened on May 5 – Children’s Day,” 5 May, 2022, p. 2
[43] Ibid
[44] Ibid
Empire of the Brick 