Just two years after entering the Formula 1 calendar, the future of the Korean Grand Prix looks bleak. The organizers are suffering heavy losses, most of which they attribute to the high fees paid to Bernie Ecclestone.
According to ESPN, this year’s race that took place last weekend, cost around US$80 million– and the organizers lost US$56 million, which is very close to the fees paid to Ecclestone for the privilege to host a Grand Prix.
Park Won Hwa, the race promoter, told British race magazine Autosport that the event will not take place next year unless F1’s head honcho renegotiates the amount he will receive which according to the deal, increases annually by 10%.
“We are trying hard, but we need the cooperation of Ecclestone”, said Hwa. “We certainly want to continue, even though we have losses, because it is a big event that can help to boost the region’s economy and image.”
Hwa explained that the Korean GP organizers also face domestic criticism that they money spend on hosting the race would be better spent elsewhere: “Those citizens, who have a background as farmers and are normally poor, want to have the funds distributed for other purposes than be used for this, so far unpopular, event.”
