Kangwon Land receives green light for casino expansion

Kangwon Land will increase its general operating area and the number of gaming devices.

South Korea.- The Ministry of Culture, Sports, and Tourism has approved Kangwon Land’s plan to expand its casino. The KRW2.5tn (US$1.85bn) investment plan dubbed K-HIT Project 1.0 will see the only casino in South Korea allowed to serve locals increase its general operating area from 14,512.68 square meters to 20,260.68 square meters.

The number of gaming devices will grow from 1,560 (200 tables and 1,360 machines) to 1,860 (250 tables and 1,610 machines). The company says the upgrades will improve the gaming experience and attract more visitors.

Changes are also planned for the casino’s foreigner-only zone, which will serve both foreigners and permanent residents. Betting limits in this zone will increase from RW300,000 (US$224) to KRW30m (US$22,400).

The casino operator said the completion date of the expansion is yet to be determined. It said the number of gaming devices and betting limits may be adjusted based on the operating environment. Adjustments to the betting limits will be contingent on revisions to the Tourism Promotion Act Enforcement Rules.

Kangwon Land‘s financial results for the second quarter of the year showed a net profit of KRW149.8bn (US$107.9m), up 59.5 per cent in quarter-on-quarter terms and 64.2 per cent when compared to the second quarter of 2023. Gaming sales were up 3.8 per cent year-on-year but down 3.4 per cent sequentially at KRW305.4bn (US$220m). 

Non-gaming sales reached KRW32.3bn (US$23m), down 11.5 per cent year-on-year and down 37.8 per cent when compared to the previous quarter. Sales mainly came from the firm’s hotel operation, plus its condominium and skiing business. Operating profit was down 3.1 per cent sequentially and down 10.4 per cent from last year at KRW73.4bn (US$52m).