Pohang, South Korea – The Eldorado Express ferry, which operates between Pohang and Ulleung Island, is on the brink of suspension due to severe financial challenges. The ferry’s operator, Daejeo Ferry, reported a cumulative deficit of 53 billion won in 2023 and 56 billion won in 2024 since its launch in July 2023.
A significant portion of this deficit, amounting to 30 billion won in 2023 and 27 billion won in 2024, is attributed to operational losses. The situation has been exacerbated by the parent company, Daejeo Construction, filing for bankruptcy on January 16th, making further financial support unlikely.
As a result of the company's financial woes, creditors are now threatening to seize the ferry. If this occurs, the Eldorado Express could cease operations entirely.
Daejeo Ferry is urging the Ulleung County government to provide financial assistance to help overcome the crisis. The company argues that the county had previously agreed to support the ferry's operations with financial aid when it was first constructed. However, Ulleung County has thus far refused to provide any financial support, citing a breach of the original agreement.
The original agreement stipulated that the ferry would depart from Ulleung Island in the morning. However, Daejeo Ferry has been departing from Pohang in the morning since early 2024, claiming that departing from Ulleung Island would result in annual losses exceeding 100 billion won.
An official from Ulleung County stated that while they are aware of the company's financial difficulties, they cannot provide financial support due to Daejeo Ferry's failure to adhere to the terms of the original agreement. The county has also requested a legal opinion on the matter.
The potential suspension of the Eldorado Express ferry service poses a significant threat to the transportation infrastructure of Ulleung Island and could have a detrimental impact on the local economy.
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