The future of the embattled Korean grand prix looks safe for now.
The Korea Herald reports that organisers of the Yeongham event have reached a deal with Bernie Ecclestone to reduce the race fees.

Completing its bespoke circuit at the last minute, South Korea joined the calendar in 2010 but soon bemoaned the huge costs.

Sunday’s media report said organisers will save more than $20 million this year by successfully negotiating a reduced race commission and annual television license fee.

The new deal will last until the end of Korea’s race contract, in 2016.

The Korea Herald said organisers paid almost $40 million to Ecclestone’s Formula One Management last year — a 10 per cent rise on 2010.

The new deal will see the 10 per cent increase scrapped, the report added.

“With the successful negotiation, we’ll be able to save a significant amount of money this year,” said organiser Kang Hyo-seok.

“It’s a still difficult situation, but we’re trying hard to improve it.”

Even after hosting its inaugural grand prix less than two weeks ago, a cloud is above the future of Korea’s formula one race.

The Yeongam circuit has failed a state safety inspection and cancelled a F3 race scheduled for November, amid new reports of apparent corruption within the organising company and F1 promoter KAVO.

The Korea Herald said the South Jeolla provincial government is set to investigate, with some money from the circuit’s construction budget spent without documentation.

“Over the next week, we’re going to look through all the documents of KAVO,” said Jung Hwan-dae, the vice-chairman of the provincial assembly.

“We’re also planning to summon officials from KAVO to investigate how the money was spent. There is something wrong here,” he added.

The undocumented expenditure amounts to more than $50 million, with other media reports alleging construction firms were paid off to avoid fees.

A KAVO spokesman would not say how the missing money was spent, but commented: “No illegal conduct took place.”

Korea’s plans for a futuristic city to be built in the middle of the new formula one circuit in Yeongam are on track.

Current aerial photos of the harbour-side venue depict a bland and messy setting, with much of the surrounding area resembling a construction site.

But the plans for the final section of the 5.6 kilometre is layout are grandiose.  The idea is that the Hermann Tilke-penned venue will eventually be part-permanent and partly a city street course.

According to the local Korea Herald newspaper, the government announced on Monday that it has approved plans for the leisure-themed corporate city.

The $1.67 billion plans, to transform the area into a motor sport and tourism city by 2021, were lodged by the provincial authorities and race promoter Korea Auto Valley Operation.

The Ministry of Culture, Sports and Tourism said construction is likely to start in the second half of 2011.

A spokesman has confirmed reports that aspects of Korea’s new formula one track are not completed.

The FIA’s Charlie Whiting this week approved the Yeongam venue ahead of the inaugural race in less than a fortnight.

But media reports have indicated that safety requirements and the asphalt aside, the entire venue is not finished.

“Landscaping work to the surrounding area and parking lots still remains to be done,” a spokesman for organisers KAVO told the Korea Herald.

“But we are finalising last-minute touches and can be ready on schedule,” he added.

After the weekend’s Japanese grand prix, the F1 teams’ equipment and cars are already en route to the facility 320 kilometres south of Seoul.

Red Bull’s Helmut Marko admitted the team is slightly worried about the layout, with the curvier sections punctuated by straights not suitable to the RB6′s Renault engine.

“One of them is the longest straight on the calendar,” he groaned, according to Auto Motor und Sport.

Nico Rosberg, however, expressed concerns that the crucial top layer of track has only just been laid.

“The only concern is the new asphalt,” the Mercedes driver is quoted by Welt newspaper.

The media report recalled June 1985, when the Belgian GP at Spa had to be postponed for months because the new asphalt surface disintegrated.

Bernie Ecclestone on Sunday insisted next month’s Korean grand prix will go ahead.

It has emerged that despite September 21 being the originally belated date for the Yeongam circuit’s final inspection, the FIA is not now expected to sign off the track until next week or even later.

A South Korean delegation is in Singapore this weekend, triggering the latest round of paddock rumours about whether the race will take place — including talk of a looming typhoon.

“We’re happy with the circuit at the moment,” F1 chief executive Ecclestone told the Korea Herald newspaper from Singapore.

He played down the rumours that the track will not be ready.

“I don’t take a lot of notice of rumours,” said the Briton, explaining the reasons for the delayed inspection.

“We waited for an obvious reason, because the weather’s been bad.  The federation (FIA) seems very happy with what’s happened, with everything that will happen,” he added.

Ecclestone also denied suggestions that FIA rules will prevent Korea from holding a race in 2011 if the inspection does not go well.

“We signed a contract,” he said.  “I can’t discuss this (outcome), because it’s going to happen.”

Ecclestone admitted that he does not expect a big crowd for October’s inaugural event.

“People are reading complete rubbish in papers that it is not going to happen, so I don’t estimate a big, big crowd,” explained the 79-year-old.