South Korea President Questions Private Casino Licenses; Stocks Slide

South Korea’s leader, President Lee Jae-myung, has described the issuing of casino licences for private-sector companies as akin to a “significant favour”.

Mr Lee also stated: “Significant profits are generated, and it is not appropriate to grant licences for this to the private sector, to specific individuals.”

He added: “It would be good for the Ministry of Culture, Sports and Tourism to keep this in mind when making policy decisions later. 

“Why grant it to individuals, to specific companies? That is why people call it a favour. Isn’t it right [better] to grant such things to the public sector?”

That is according to a review by GGRAsia’s South Korea correspondent of Mr Lee’s Tuesday remarks made in Korean. They were in a video recording uploaded to social media and taken from part of a briefing attended by the national leader, about the Ministry of Culture, Sports and Tourism’s work plan for 2026.

GGRAsia is approaching the presidential office for clarification on Mr Lee’s remarks.

The stock price of respectively Paradise Co Ltd and Lotte Tour Development Co Ltd, two private-sector operators in South Korea of foreigner-only casinos, registered falls in Wednesday trading, coinciding with Mr Lee’s Tuesday comments.

The national leader’s remarks came during a dialogue with Yoon Doo-hyun, chief executive of Grand Korea Leisure Co Ltd, a South Korean operator of three foreigner-only casinos.

The company is listed on the Korea Exchange, but is a state-controlled entity, operating under the Korea Tourism Organization.

When quizzed by President Lee on Grand Korea Leisure’s own annual profit, Mr Yoon said it amounted to “around KRW40 billion [US$27.0 million] to KRW50 billion”.

Grand Korea Leisure reported net income of KRW33.06 billion for full-year 2024, down 24.6 percent year-on-year, according to filings. 

Kangwon Land expansion

On Wednesday, in a resumption of the briefing session, President Lee also heard a submission from Choi Cheol-gyu, interim CEO of Kangwon Land Inc.

The firm is the operator of Kangwon Land, the country’s only casino authorised to serve locals. It is listed on the Korea Exchange, but under a special law, it is expected to contribute up to 13 percent of its casino revenue to an Abandoned Mine Fund. 

In 2024 the property accounted for 42.3 percent of the South Korean casino sector’s gross gaming revenue (GGR) generating KRW1.36 trillion, according to data from the Ministry of Culture, Sports and Tourism.

Kangwon Land Inc has been lobbying for some government easing of its business conditions, amid an effort to make the casino venture internationally-competitive via its reinvestment programme K-HIT 1.0.

Mr Lee asked Mr Choi: “Is the business unviable without deregulation?” Mr Choi said that was so. The nation’s leader then asked: “What are the barriers for K-Hit 1.0?” 

In his reply, Mr Choi said the current number of days per year that South Korean nationals can use the Kangwon Land casino are capped at “180 days”, and that the operation hours “have daily limits”.

The executive asked Mr Lee to scrap those limits, as well as to nod the expansion of the casino space at the complex.

Mr Choi also asked the authorities to “raise the bet limit of KRW300,000 to KRW1 million” at Kangwon Land’s casino.

President Lee replied: “That [the K-HIT 1.0 expansion scheme] is a risky business. [Kangwon Land] must not risk failure by such ventures. The relevant department shall review the matter, and should an unjust conclusion be reached, please report it to the Presidential Office directly.

Mr Lee added: “Gambling is considered part of the terminal symptoms of the nation’s decline. But it may also promote sport or leisure, so I shall examine it.”

The shares of Kangwon Land Inc and Grand Korea Leisure were up slightly in Wednesday trading.