Moon Tae-Gon has been named chief executive of South Korean casino operator Kangwon Land Inc. effective December 22. He replaced Ham Seung-hee, who recently completed a three-year term as CEO, reported GGRAsia.
Moon’s term took effect December 22 and will continue until December 2020. He previously worked for South Korea’s Board of Audit and Inspection and later was employed by Samsung Life Insurance Co. Ltd.
Kangwon Land, based in a remote region some 100 miles from the capital city of Seoul, posted a 10 percent decline in revenue for third quarter of 2017. JP Morgan Securities Asia Pacific Ltd. stated that the company’s gross gaming revenue will continue to be constrained as South Korea seeks to put a lid on locals gambling.
According to a report on Casino.org, Kangwon Land has been ordered by the country’s Ministry of Culture, Sports and Tourism to cut its hours and number of mass tables. In a filing with the Korea Stock Exchange, Kangwon Land revealed the agency directed it to cut its operating hours from 20 hours per day to 18 and eliminate 20 tables.
Kangwon Land is fully owned by several government agencies; the largest shareholder is the Ministry of Trade, Industry and Energy. In the fall of 2016, it was ordered to establish greater safeguards to curb problem gambling. An entry fee is now levied on locals, and they are not allowed to gamble after consuming alcohol. Almost all of Kangwon Land gaming revenue—98.9 percent in 2015—comes from South Koreans.
In a black mark for the company, last month it was revealed that former CEO Choi Heung-jip was arrested and charged with influence peddling. During his tenure between mid-2011 and early 2014, he was accused of hiring under-qualified but well-connected people to work at the casino resort to curry favor with politicians and other influential people.
