The Jeonbuk Jeonju 2036 Summer Olympics bid faces challenges after it was revealed that there were errors in the economic feasibility analysis that downgraded its previously positive outlook.
The bid for the 2036 Summer Olympics in Jeonbuk Jeonju, which had previously shown promise through favorable economic feasibility assessments, is now facing significant challenges. Recent reviews by the provincial government and the Korea Sports Science Institute disclosed that initial economic analysis metrics revealed errors, necessitating a revision of the benefit-cost ratio (B/C) from 1.03 to 0.91. This ratio is critical as it assesses the project's economic viability based on the present value of benefits compared to costs, with a score of 1 or above indicating economic feasibility.
The errors were traced to the misapplication of the base year for calculating costs in the economic analysis conducted by the Korea Sports Science Institute. Originally, they used the cost figures from 2021 instead of the planned base year of 2024, resulting in an misleadingly high benefit-cost ratio. Following the discovery of this mistake, representatives from both the Jeonbuk province and the Korea Sports Science Institute reaffirmed their commitment to moving forward with the bid, citing that the overall project assessment still supports its viability despite the lowered B/C ratio.
The Jeonbuk province officials expressed determination to pursue the Olympics despite skepticism from some quarters. The revised evaluation indicated a hierarchical analysis (AHP) score that remains above 0.5, which is the threshold for determining the feasibility of projects according to the Ministry of Planning and Budget's guidelines. Officials aim to reinforce their project management to prevent similar errors in future evaluations, emphasizing their focus on maintaining progress amid doubts regarding the Olympic bid.
