South Korea: New Silkroad reports US$11.8m loss for 2020

New Silkroad puts the  increased loss down to the suspension of casino operations in Jeju.
New Silkroad puts the increased loss down to the suspension of casino operations in Jeju.

New Silkroad, which operates a resort on Jeju Island, has reported a loss of HK$92m (US$11.8m) for 2020.

South Korea.- The casino company New Silkroad Culturaltainment has reported a loss of HK$92m (US$11.8m) for 2020. That compares to a loss of HK$80.4m (US$10.3m) in 2019.

The company, which operates MegaLuck Casino at Jeju’s KAL Hotel, was severely impacted by the drop in tourism and the suspension of its casino operations in Jeju.

New Silkroad reported that revenue for the year plummeted 99.5 per cent to just HK$400,000 (US$51,000) compared with HK$82.6m (US$10.6m) in 2019.

The casino operator stated: “If the epidemic is not brought under control this year, the business prospect in South Korea is arduous. However, the Group will continue to implement cost control measures in response to the adverse business environment.”

New Silkroad was also planning to develop an integrated resort in Jeju, but the project is on pause due to ongoing delays in obtaining financing.

The project, known as Glorious Hill, was promoted as “one of the largest integrated resort complexes in South Korea”.

South Korea hit by steep drop in tourist numbers

According to The Korea Tourism Organization (KTO), an average of just 9,722 tourists per month have visited South Korea since last April, a 99 per cent decline compared to the 1.33m visitors in January 2020.

The Ministry of Culture, Sports and Tourism has announced the government will allow South Korean casinos to postpone their sales tax payments for at least 12 more months.

In this article:
Covid-19 land-based casino New Silkroad