PYEONGCHANG (South Korea), July 5: Tears flowed, hearts sank and shares fell as South Koreans came to terms with the news Pyeongchang had lost out to Russia's Sochi in the race to stage the 2014 Winter Olympics.

Local media suggested Pyeonchang's bid may have been ‘poisoned’ by South Korean cities winning the 2011 world athletics championships (Daegu) and the 2014 Asian Games (Incheon).

The IOC may have been reluctant to see Korea win three major international sporting events and competing cities had been calling for a fair distribution, Yonhap News agency said.

Residents of Pyeongchang were bloodied but unbowed after another devastating defeat

“I'm so heartbroken,” said community leader Kim Bong-kyu, who woke his neighbours at 5:00am to join what many thought would be the biggest celebration of their lives.

“We must try again,” he said, his eyes red and full of tears. “I am absolutely sure we will win next time.”

Some 2,000 residents had gathered on a chilly, foggy morning at city hall, anticipating a decision that would put the scenic town on the world map. But nervous excitement gave way to stunned silence when IOC President Jacques Rogge named Sochi as the winner.

“I'm 82 years old. I wanted to see the glory before I die,” said Shim Jung-ok as she trudged out of Pyeongchang City Hall courtyard. “I'm so disappointed. I'm crushed.”—Reuters