A city in the greater Seoul area is aiming to become the first in Asia to attract Madison Square Garden (MSG) Sphere, an iconic music and entertainment arena with 1.2 million light-emitting diodes (LED) on its exterior. But Hanam, the city 20 kilometers east of Seoul’s Gangnam district, faces a bumpy road to winning the project due to complex regulations.
David Stern, vice chairman of the MSG Company, visited the South Korean city in May of this year and met Mayor Lee Hyun-jae to discuss a construction plan. They discussed including the arena in Hanam’s K-Star World project, which will establish a concert hall, theme park and movie industrial complex on a 900,000 square-meter site.
“If Hanam attracts Asia’s first MSG Sphere, it will be an opportunity for Korea’s entertainment industry to take a quantum leap in attracting huge overseas investment and tourists," Mayor Lee said during an interview with The Korea Economic Daily on Thursday.
The city is challenged with the schedule as it typically takes more than 40 months to lift development restrictions on greenbelt zones, and for a feasibility studies and preparation on the site before beginning construction.
The city authorities aim to bring the start of the construction forward to 2025 to win the MSG Company project, a Hanam city official said. The establishment of K-Star World and MSG Sphere is forecast to take three to four years, he added.
K-Star World is estimated to cost around 2.5 trillion won ($1.9 billion). Building the spheric arena will cost additional 3 trillion won, one-third of which would be financed by MSG Company, the official said.
Hanam Mayor Lee Hyun-jae (left), The MSG Company Vice Chairman David Stern (Courtesy of Hanam City) ICONIC LANDMARK WORLDWIDE
The MSG Company has shown interest in Hanam’s Misa area as the site for construction, thanks to the accessibility to Seoul’s upscale district Gangnam and the natural environment where the Han River flows, the government officials said.
The US company owns the professional basketball team New York Knicks and the ice hockey team New York Rangers, as well as entertainment venues like Radio City Music Hall. The company is set to complete a $2.3 billion construction of the first MSG Sphere in Las Vegas and stage a concert by Irish rock band U2 there on Sept. 29 of this year.
The Las Vegas-based building will be 157 meters in diameter and 112 meters high, accommodating around 18,000 people. It was unveiled last month on July 4, illuminating LEDs displaying fireworks, the American flag and the Moon to celebrate the US federal holiday.
The company is planning to establish its second spheric venue nearby Stratford, East London with $1.8 billion. It is also considering building another venue in the Middle East such as United Arab Emirates, Saudi Arabia or Kuwait.
DEREGULATION
Asia’s first spheric venue will become a game changer for the global entertainment event industry, the mayor said. The city and the MSG Company see their visions of the construction project aligned, he added.
“We will propose the prime minister’s office and government bureaus to lift regulations on the development of the greenbelt in Misa and put the necessary procedures on the fast track,” he said.
“The city authorities may form a task force for deregulation. We need to conduct the feasibility study, designate urban development zones, establish the implementation plan and receive legal approval for it. We have high expectations on the Korean government’s will to carry out the project,” he added.
Write to Dae-Hun Kim and Hae-Ryon Choi at daepun@hankyung.com Jihyun Kim edited this article.
