From Business Week – South Korea’s Incheon city said Thursday a $290 billion plan to transform a fishing village into a rival to the Chinese gambling enclave of Macau has collapsed. Incheon Free Economic Zone official Jung Mi-hyun said luxury hotel operator Kempinski AG, a key member of the development consortium, failed to raise a promised $40 million by the end of July. Kempinski’s Korean unit KI Corp. is the largest shareholder in the consortium, Eightcity Co. Korean Air Lines Co. is the second-largest. According to Incheon city, Kempinski agreed in May to the $40 million investment and to pay…