Construction of an esports arena worth 30 billion won (approximately $22 million) has been halted in the South Korean city of Jecheon.

Operativ Media reports that the city municipality was expected to cover 80 percent of the project's funding, amounting to 24 billion won. However, following a profitability analysis, local council members deemed the project financially unfeasible.

Local authorities cited a weak foundation for esports development in the region, a small population, and a lack of regular tournaments to ensure arena occupancy as the main reasons for the decision.

Due to the freezing of the project, representatives of the Jecheon mayor's office will have to report to South Korea's Ministry of Culture, Sports and Tourism regarding the suspension of construction and the subsequent fate of state funding.