Mr McClay said the festival had the potential to further promote Rotorua as a tourist destination but it was important local people retained confidence in the event so he had asked MPI to deal with this request as a matter of urgency.
The topic was also the subject of debate during yesterday's Rotorua Lakes Council Operations and Monitoring Committee meeting.
Rural Community Board chairwoman Shirley Trumper said there had been significant concern from the rural community about the potential for the South Korean mud to carry foot and mouth disease.
She said the most recent outbreak of the disease in South Korea was in February.
"The Republic of Korea have diseases that we don't have in New Zealand and nor do we need them.
"I've spoken with the chief veterinarian at Fonterra about potential risks. She has assured me there are minimal risks. My point is there should be absolutely no risk. No one can give me a 100 per cent guarantee this product is safe from either a virus or a disease."
However committee chairman and councillor Charles Sturt said it was not fair to ask for a 100 per cent guarantee, with Mr Weston adding the cosmetic-grade South Korean mud was shipped globally and the council was being guided by MPI throughout the process.
Board member Bob Martin added he was "bloody nervous" about the situation.
"I'm basically praying we use the Korean mud and nothing comes out of it, because if it does, all hell will break loose."
Councillor Rob Kent, who made an unsuccessful motion to cancel the South Korea deal, said a mud festival was not worth any risk of foot and mouth disease to the agricultural economy.
"Unlike most around this table, I've had a family go through foot and mouth. I've seen what can actually happen when every farm around you and your entire livelihood is destroyed because of an organism that is very difficult to control.
"I am not going to be held liable for that possibility."
Mr Kent argued that the Rotorua mud festival could be held without the South Korean mud.
However, Mrs Chadwick, who signed the mud deal on behalf of the council while in Boryeong, said to cancel the deal would be a "diplomatic embarrassment".
"I'm supporting something that is fantastic ... I have been out and about at many events since the media kerfuffle over this and actually people want justification ... about the council spend. Once they hear the real story, they say 'this is quite exciting'.
"We've got to be confident, we've got to be brave, we've got to do the next big thing for our destination. This is it."
The presentation of a certificate from the Taxpayers Union to the council earlier this week relating to this deal was also raised, with an angry deputy mayor Dave Donaldson making a motion "to investigate legal remedies to address the loss of sponsorship revenue arising as a result of the actions of the Taxpayers Union".
However after discussion Mr Donaldson retracted the motion.
The Taxpayers Union responded saying it was "stunned" by the threat of legal proceedings in response to its "legitimate protest".
Councillors voted unanimously to confirm their support for the event, noting the risk profile had increased, which had a potential to impact on the bottom line of the event's first year.
