The news coincides with the position of recently-elected President Cho Yang Ho coming under threat due to a crisis at Korean Air, where he is chairman and chief executive, that has made worldwide headlines and shows no signs of ending soon.  

The results, revealed by the The Board of Audit and Inspection of South Korea (BAI), show a massive shortfall in predicted sponsorship revenue that has left the organisers dependent on loans from the Government.

According to the audit results, Pyeongchang 2018 had set its budget plans with an assumption that it would be able to earn KRW17.5 billion (£102 million/$158 million/€130 million) and KRW 67.5 billion (£392 million/$611 million/€501 million) in 2013 and 2014 each from sponsorship incomes.

But in 2013 it did not make anything and this year earned only KRW3.5 billion (£20.3 million/$31.6 million/€25.9 million), 5.2 per cent of of the expected income.

It instead borrowed KRW11 billion (£64 million/$99 million/€82 million) last year and KRW10.5 billion (£61 million/$95 million/€78 million) this year.

Since Pyeongchang was awarded the Winter Olympics and Paralympics by the International Olympic Committee at its Session in July 2011, ahead of rivals Munich and Annecy, they have borrowed KRW18.7 billion (£109 million/$169 million/€139 million) more than predicted from the Government.

International Olympic Committee President Thomas Bach was among those to welcome the return of Cho Yang Ho as head of Pyeongchang 2018 ©Pyeongchang 2018

Cho, who led Pyeonghang's successful bid to host the Games at their third attempt before stepping down, had returned to the helm in July partly because of fears that preparations had fallen behind and not enough sponsorship money was being raised.

His reputation as one of South Korea's leading businessman was seen as an opportunity to help attract big-name sponsors and put Pyeongchang 2018 back onto an even financial keel.

His position is now under threat, however, after his daughter Cho Hyun-Ah, a vice-president at Korean Air, was forced to resign following a public outrage after she ordered one of the company's planes taking off from JFK Airport in New York City to return to the departure gate because she was unhappy she had been served macdemia nuts in a paper bag rather than a dish.

The incident has led to a detention warrant being issued against her by South Korean prosecutors amid claims Korean Air officials have tried to hamper the investigation. 

There are fears that the scandal will prevent Cho from properly fulfilling his role at Pyeongchang 2018.

"I consider the Pyeongchang post as a public duty," Cho told South Korean reporters.

"Any decision I make in the post will be for the good of the country."

Cho Hyun-Ah, daughter of Cho Yang Ho, has been forced to resign as vice-president of Korean Air and faces a detention warrant following "nut-gate" ©AFP/Getty Images

The figures released by the BAI have caused further concern about the financial success of the Games.

During the bid Pyeongchang 2018 had predicted direct and indirect economic benefits of KRW64.9 trillion (£38 billion/$60 billion/€48 billion).

They estimated it would cost KRW7,255.5 billion (£4.2 billion/$6.7 billion/€5.4 billion) to build facilities, including the venues, and other related infrastructure, but that it would earn as much as KRW 21.1 trillion (£12.2 billion/$19.5 billion/€15.6 billion) in direct economic effects.

Gangwon Province - where Pyeongchang is located - last year issued local bonds KRW28.5 billion (£16.5 million/$26.4 million/€21.1 million) to help make up for a shortfall in the building budget.

This is separate from the Organising Committee's operating budget used to stage the Games. 

The Alpensia Resort, meanwhile, the main centre for the Games, is reportedly curently having to service a loan of KRW1.12 trillion won (£651 million/$1 billion/€831 million), with interest at KRW111 million (£64,500/$103,000/€82,500) a day.

It must repay KRW567.3 billion (£330 million/$525 million/€421 million) worth of the loan next year 

The Alpensia Resort, the main centre for Pyeongchang 2018, is crippled by heavy loans, it is reported, with a looming deadline to repay half the money ©AFP/Getty Images