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Rising costs lead Pyeongchang 2018 organisers to ask South Korean Government for more funding

Rising costs lead Pyeongchang 2018 organisers to ask South Korean Government for more funding
June 29, 2016

Facing ballooning costs in its organisation of the 2016 Winter Olympic and Paralympic Games, the organisers of the Pyeongchang 2018 Games has reportedly asked for more funding from the South Korean Government

With the Games’ budget rising from its estimated original cost of KR₩2.2 trillion (US $1.9 billion), the Pyeongchang Olympics Organising Committee wants another KR₩600 billion US$518 million) from the Government, according to South Korean newspaper Chosun Ilbo.

The present budget is said to be based on the 2011 winning bid for the Winter Olympic and Paralympic Games and does not include added costs involving new disciplines and other variables.

A Pyeongchang 2018 spokesman told Chosun Ilbo “we have not made any decisions about the specific amount, but our new fiscal plan includes requests to the International Olympic Committee for more funding.”

The International Olympic Committee (IOC) is also anticipating a request for additional funding from Pyeongchang 2018, advising that it "always stands ready, along with other Olympic stakeholders, to consider ways to optimise the Games' budget".

In a statement the IOC advised “in keeping with Olympic Agenda 2020, the IOC works with Pyeongchang 2018 on a continuous basis to reduce the cost and complexity of Games organisation,

and will contribute directly and indirectly US$850 million to the successful staging of the Games.”

Last month, new Pyeongchang 2018 President Lee Hee-beom promised to organise a successful Winter Games, despite the financial, timing and leadership problems that have plagued preparations so far.

Lee, who replaced Cho Yang-ho as head of the Organising Committee at the beginning of May, was speaking following a meeting with IOC Coordination Commission chair Gunilla Lindberg in Seoul.

He admitted that time is running out with less than two years until the Opening Ceremony but claimed they are resolving outstanding problems with venue construction.

Lee has also said increasing sponsorship revenue is a key goal ahead of the next Winter Olympic Games.

The Organising Committee’s aim is to reach 90% of their sponsorship of KR₩870 billion (US$752 million) target by the end of this year.

A senior official at South Korea’s Ministry of Culture, Sports and Tourism told Chosun Ilbo, “our goal to host the Olympics at minimum expense remains unchanged, but budget increases are not uncommon and will be focused on the construction of sports venues.”

20th May 2016 - PYEONGCHANG GAMES PRESIDENT CONFIDENT OF SUCCESSFUL OLYMPICS DESPITE FINANCIAL AND TIMING CONCERNS

31st March 2016 - GANGNEUNG AIMS TO BECOME SOUTH KOREAN WINTER SPORTS HUB AFTER PYEONGCHANG 2018 GAMES

17th December 2015 - PYEONGCHANG WINTER GAMES ASSURE READINESS FOR OLYMPIC TEST EVENTS

24th November 2015 - PYEONGCHANG 2018 WINTER OLYMPICS ANNOUNCES TICKETING PARTNER

12th September 2013 - KOREAN GOVERNMENT REVEALS PLANS TO ADD 40,000 SPORT INDUSTRY JOBS


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