South Korea casino industry recovery to continue, analysts say
South Korea’s casino industry is expected to continue its recovery in the second half of 2023, helped by the return of Chinese tourists.
South Korea.- The recovery of South Korea’s casino business will continue in the second half of 2023 thanks to the return of Chinese visitors, particularly mass market customers. That’s according to a report from brokerage firm NH Investment & Securities Co Ltd cited by Business Korea.
Analyst Hazell Lee noted that the first half of the year has seen solid earnings for the South Korean casino industry despite concerns over a potential slowdown. That the recovery is expected to continue in the second half of the year, thanks to the resumption of Chinese visits following the end of the country’s zero-Covid policy.
Lee suggested that the rebound will mainly be in mass customers, as China maintains its crackdown on VIP gaming. NH Investment said Paradise Co was one of the biggest beneficiaries among South Korean casino operators due to the company’s competitive edge in attracting mass market tourists at its Paradise City integrated resort.
Several South Korean casino operators have reported strong year-on-year profit growth in their first-quarter results. Paradise Co, Grand Korea Leisure Co, and Kangwon Land Inc all posted improvements in their net profits compared to the previous year. However, the Jeju Dream Tower casino resort, operated by Lotte Tour Development, saw a net loss in the casino segment.
The Ministry of Culture, Sports and Tourism reported that gambling revenue in South Korea grew by 64.2 per cent year-on-year in 2022, from KRW1.18tn to KRW1.94tn (US$1.47bn).