Kangwon Land slot machine business questioned after US$11m loss in six years
The company’s international expansion has produced limited returns, with the Philippines accounting for most of its global machine sales.
Key takeaways
- Kangwon Land’s slot machine business accumulated KRW14.8bn (US$11m) in losses from 2020 to 2025.
- The Philippines accounted for 88.31 per cent of Kangwon Land’s 77 machine sales worldwide.
- The Philippines office cost about KRW700m (US$520,300) through August 2026, including rent, accommodation and vehicle leases.
- Lawmaker Koo Ja-keun called for a review of the Philippines office and overseas staff arrangements.
South Korea.- People Power Party lawmaker Koo Ja-keun has called for a review of Kangwon Land’s slot machine business in the Philippines, including of whether the permanent office is necessary and how the duties and allowances of dispatched staff are managed. He made the call after the company confirmed that its slot machine manufacturing business had reported six consecutive years of losses, with a cumulative deficit of KRW14.8bn (US$11m) up to the end of 2025.
The company provided the figures to Koo as part of his examination of the company’s slot machine manufacturing business and overseas operations. The business reported a loss of KRW1.4bn (US$1.04m) in 2020, followed by KRW2.4bn (US$1.78m) in 2021 and KRW2.23bn (US$1.66m) in 2022. Annual losses increased to KRW2.74bn (US$2.04m) in 2023, KRW2.91bn (US$2.16m) in 2024 and KRW3.4bn (US$2.53m) in 2025.
Kangwon Land entered slot machine development and manufacturing in 2017 under its KL Saberi brand. The aim was to develop an additional source of revenue and expand into overseas markets. It projected annual production of 10,000 machines from 2031, alongside KRW500bn (US$371.6m) in revenue and KRW200bn (US$148.6m) in net profit.
The company opened a Philippines office in 2022. However, sales in the Philippine market reached just 20 machines in 2023 and 42 in 2024 before falling to zero in 2025. Six machines were sold in the market in 2026 by the time the figures were released.
The Philippines accounted for 88.31 per cent of the 77 machines sold by Kangwon Land worldwide over the period. The local office did not identify new distributors or sign new contracts. Kangwon Land said the Philippines operation had focused on managing its existing distributor, RGB, and supporting joint sales because the country is covered by RGB’s exclusive distribution territory.
Kangwon Land spent about KRW700m (US$520,300) on office rent, accommodation and vehicle leases in the Philippines from the office’s opening through August 2026. The company’s own comparison found that maintaining the office cost about KRW62m (US$46,100) more per year than sending one employee to the country on a monthly business-trip basis.
The management of staff assigned to the Philippines has come under scrutiny. An employee who began the assignment in January 2024 spent 243 days in South Korea, citing domestic work and personal reasons but continued to receive overseas duty allowances totalling about KRW40m (US$29,700) in 2025.
