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The encyclopedia · Strategy & Leadership · Financial decision · 1996–1999

Okpo Land closed in 1999 as the Asian financial crisis ended a new Korean amusement park

A Geoje amusement park opened in 1996, then collapsed in the IMF crisis within three years, selling for 5 billion won in 2006.

Okpo Land · 1999

What happened

Okpo Land was an amusement park in Geoje, South Gyeongsang Province, South Korea. It opened in 1996 (some sources say May 1997) with attractions including a Viking pirate ship, bumper cars, a roller coaster called Fantasy Express, a merry-go-round, a roller skating rink, a four-seasons sledding slope, Sky Cycles duck ride, a mini train, Space Fighters, plus an arcade, swimming pool, sauna, and hot tubs. The entrance sign featured Disney characters and the park had mascots of a father bear and a little bear.

Okpo Land closed in 1999, just two to three years after opening. The closure is often attributed in local lore to a series of fatal accidents, particularly the death of a child who fell from the duck sky cycles ride. However, the legitimacy of these claims is disputed — the accidents may have occurred after the park had already gone out of business. A more likely explanation is the 1997–1998 Asian financial crisis (known in Korea as the IMF crisis), which devastated consumer spending and made it impossible for a newly opened park to sustain operations.

After closure, the abandoned park became a filming location for the 2002 film Jungle Juice and a gathering place for survival clubs. Daewoo Shipbuilding & Marine Engineering purchased the property in November 2006 for 5 billion won. The remnants were demolished in 2011 for a hotel development that never materialized. The site also saw two post-closure incidents: a student fell from ride rails in January 2000 (the owner paid 7 million won in damages), and a man was found dead on the rails in September 2001, suspected death due to credit card debt.

Why it happened

  • Okpo Land opened in 1996 just before the 1997 Asian financial crisis hit, leaving it with no time to build a customer base before the economy collapsed
  • The park was a leveraged investment that could not survive when consumer spending dried up during the IMF crisis, forcing closure within three years of opening
  • Safety rumors and disputed accident reports accelerated the park's decline, even though the worst incidents occurred after the park had already closed
What it cost5 billion won property sale after a 3-year operationcostly

The lesson

A new business that opens just before a macro shock has no reserves and no loyalty to fall back on — the first year is the worst time to face a crisis, because the customer base is still being built.

Sources

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