Spiritual leader's dream may be over

Cabins built for Ilchi Lee's Earth Village in 2017 still await an earthworks consent so they can be moved on to location west of Kerikeri. Picture / Peter de Graaf

A Korean spiritual leader's dream of building a global headquarters near Kerikeri appears to be over after the Overseas Investment Office refused a retrospective consent to buy seven Northland properties.

In 2014-16 Seung Heun Lee, known to his followers as Ilchi Lee, and his companies Double Pine Investment and Meditation Tour bought three residential properties in Kerikeri, a 25ha block of land next to Whangaroa Harbour, and a 156ha rural property on the edge of Puketi Forest, west of Kerikeri.

He also bought what was then Marty's Golf Range and Cafe, on State Highway 10 north of Waipapa, and Haruru Falls Panorama Resort near Paihia.

One of his aims was to bring South Korean tour groups to the Bay of Islands for spiritual retreats.

He also started building an "Earth Village" on his Pungaere Rd property, which he intended to be the global headquarters of his Earth Citizen Organisation. Young people were to have stayed there, learning leadership skills and sustainable living.

In a presentation to a Far North District Council meeting in 2018 Mr Lee's staff said he planned to spend $35 million developing the Earth Village.

In 2017 the Overseas Investment Office (OIO), which regulates the sale of sensitive land to foreigners, said it was investigating Mr Lee's land purchases but would not elaborate further. The then manager of Meditation Tour, ManGyu Choi, said Mr Lee did not require OIO permission because he was a permanent resident of New Zealand.

Permanent residents are exempt from OIO restrictions as long as they live in New Zealand more than half the year.

It is not clear why the OIO has now retrospectively declined Lee's consent to buy the seven properties, which cost a total of $10.4 million. It is also unclear what will happen now. In the past, when the OIO has refused a retrospective consent the buyer has been forced to sell the property, although in some cases a compromise was struck where some land could be retained.

Spokeswoman Yewon Hwang said Double Pine Investment and Meditation Tour remained committed to developing tourism and creating jobs in the Far North and contributing to the local community.

"We are disappointed by the decision, but really believe in the Far North and New Zealand. We will continue to invest in the Far North and help bring jobs and visitors to this region," she said.

The OIO report stated that Land Information Minister Eugenie Sage and (former) Associate Finance Minister David Clark "needed to be satisfied that the applicant meets both the investor test and the benefit test that requires the investment to result in substantial and identifiable benefit to New Zealand."

The investor test requires the buyer to have relevant business experience and acumen, demonstrate financial commitment, be of good character, and not be an individual of a kind referred to in section 15 or 16 of the Immigration Act 2009.

"Both Minister Clark and Minister Sage were not satisfied that the investor test had been met, and declined the application on that basis," the report stated.

Mr Lee has been unable to make much progress on his Earth Village due to consenting issues, but has already spent a significant sum on the property, including on the construction of cabins and a boardwalk trail with meditation platforms. He has also converted the Haruru Falls property into a retreat for Meditation Tour clients, and opened a yoga centre in central Kerikeri.

He abandoned plans for a martial arts school on the former Marty's Cafe site, now called Tee Tree Cafe and Golf Range, due to opposition from local residents.