Lotte Tour Development will resume interior construction work on a residential building of its South Korean integrated resort, Jeju Dream Tower, following mediation talks with contractors.
The talks were instigated by Lotte Tour due to a dispute over payment between Chinese real estate development company Nokji Group and four Korean interior design and development companies. Both Lotte Tour and Nokji had proposed a third-party verification to mediate the settlement of construction costs between the companies, with all agreeing additional construction costs would be implemented following payment of existing contract amounts.
The residential component of Jeju Dream Tower comprises 850 apartments and is larger than the 750-room Grand Hyatt Hotel which opened it doors on 18 December 2020.
Lotte Tour said in a statement, Due to the dispute between Chinese architecture and interior companies, Dream Towers brand image was deteriorated and the business suffered enormous damage, but instead of relying on the police we did our best to mediate to induce agreement between the parties.
We will now make every effort to contribute more to the local community by successfully operating all 1,600 rooms.
Lotte Tour is currently in the process of transferring casino operations to Jeju Dream Tower from their former home at Lotte Hotel Jeju.