Korean residents would be allowed at new resorts, not at existing foreigners-only casinos

The tourism minister of Korea has come out in favor of allowing locals to visit and play at future integrated resorts.
“If we are going to build casinos, then it should be open to all, Koreans and foreigners,” said Chung Byoung-gug, minister of culture, sports and tourism, speaking to the Korea Chamber of Commerce last week.
 
The Chosun Ilbo reported that Chung did not agree with barring Koreans from entering integrated resorts while seeking foreign investment for the properties.
 
“It is simply unfair,” said Chung.
 
At present there are 17 casinos operating in Korea. All but one are off-limits to Korean residents, which spurs locals to travel abroad to play at casinos.
 
Chung said, “Since many Koreans disapprove of opening casinos to local citizens, those who want to gamble go abroad and spend their money in foreign countries. The result is that we end up losing out on what should be a highly lucrative and high-end tourism draw.”
 
When a question was asked about the problems associated with casino gaming, Chung said that he believes the Korean society is mature enough to control its actions.
 
“I do not believe the negative effects will be so huge,” said Chung. “I trust that Korea has the ability to prevent the negative side-effects from taking over.”
 
Chung made it clear in a later interview with the Chosun Ilbo that Koreans should not be allowed to enter the existing foreigners-only casinos.
 
“I am recommending that we build new integrated resorts for families and tourists that happen to include domestic casinos,” said Chung.
 
To establish a modern gaming industry and keep some of the traveling money at home, the government wants to see integrated resort-style casinos in its designated foreign economic zones and on Jeju Island.
 
Current law would allow a foreign operator to open a casino in one of the six FEZs or on Jeju, providing the investment was more than $500 million and created at least three different types of tourism businesses, for example a five-star hotel with international convention center.
 
Chung said, “Las Vegas started with casinos, but conventions, shopping malls and entertainment gradually took up bigger parts of the city’s economy, shifting to leisure industry for families.”
 
Korea is looking to increase foreign direct investment within the country. A government committee set a target of $15 billion in FDI for 2011, which represents an increase of 16.6 percent over 2010.
 
Korea has been identified as being high on the wish list of operators such as Steve Wynn and Sheldon Adelson.
 
Wynn visited Incheon, Korea in March and expressed his belief that a site close to the airport would be desirable for an integrated resort.
 
In May, while speaking in Macau, Wynn said, “If I am given the opportunity to invest in Korea, I am willing to come in with $2 billion to $3 billion today. The only condition is that I don’t want to do a foreigners-only casino.”
 
Las Vegas Sands President Michael Leven has made similar comments, saying in a fairly recent interview with the Maeil Economic Daily that LVS is ready to put $4 billion into a Korean venture if locals are allowed to gamble.
 
“We want to create an integrated facility containing convention centers, businesses, theaters, entertainment and shopping,” said Leven. “Our focus is not just the casino. The Marina Bay Sands in Singapore is our best model.”

By Staff