The Mine Reclamation Corp, one of Kangwon Land’s main shareholders. has announced it has transferred its entire 36.27 per cent stake to an entity called the Korea Mine Rehabilitation and Mineral Resources Corp.
South Korea.- The Mine Reclamation Corp, one of South Korean casino Kangwon Land‘s main shareholders, has transferred nearly 77.6 million shares to the Korea Mine Rehabilitation and Mineral Resources Corp. The group had a 36.27 per cent stake in the casino operator, making it the largest single investor in the company.
The Korea Mine Rehabilitation and Mineral Resources Corporation is a new public agency responsible for overseeing Korea’s metal, mineral, and mining affairs. It was established by merging two existing organisations: Korea Resources Corporation and the Mine Reclamation Corporation, which held the stake in Kangwon Land.
Kangwon Land’s licence has been extended for another 20 years until 2045 in return for a tax increase. The licence for the only casino in South Korea that is open to nationals was to end in 2025 but has been extended in exchange for a payment of 13 per cent of gross gambling revenue to the Abandoned Mine Fund.
The new agreement replaces the current 25 per cent tax on profit before tax (PBT). According to the government, the change is to ensure that payments are made regardless of whether the company is profitable. It will effectively increase payments by around 43 per cent to KRW208bn.
Kangwon Land recovery depends on higher vaccination rates
Analysts at South Korean brokerage NH Investment and Securities Co Ltd predict that the South Korean casino Kangwon Land could post consolidated sales up 256 per cent during the third quarter when compared to the previous year.
The casino operator could reach KRW272.5bn (US$232.8m) in consolidated sales for the three months to September 30 if South Korea shifts “as long as the vaccination rates increases.”
According to analysts, the rise in vaccination rates would lead to an easing in Covid-19 restrictions. Kangwon Land’s capacity is currently limited to 30 per cent due to countermeasures imposed by the government. However, the casino venue registered an average total number of daily visitors similar to pre-pandemic figures.