The South Korean casino industry is struggling to survive in the aftermath of the Covid-19 pandemic. More than casinos in Macau or Singapore, Korea’s casinos have been hard hit by the loss of international tourists, particularly from the People’s Republic of China (PRC).
This is mainly due to the fact that all 18 casinos, save one, cater only to foreigners. They either closed or stayed open for the small expat population.
The only casino open to the locals is Kangwon Land Casino near Jeongseongun, the largest casino in the country, responsible for more than half of its gaming revenue.
Although both revenue and patrons declined during the pandemic, it survived. Its revenues dropped 47.7 percent in 2021 but bounced back the following year by 74.7 percent. It carried out a $23.7 million expansion plan during the slowdown that increased the number of table games.
The foreigners only casinos are confined to Seoul, Incheon, Busan and Jeju, with the latter having the largest concentration: eight casinos. Jeju, a semi-autonomous region, permits visa free travel for Chinese citizens. In the years before Covid, those numbers were 15 million annually.
Jeju was the hardest hit of the casino-hosting regions. Its airport was closed to international travel at the beginning of the pandemic and is still closed. Three of the eight casinos are open.
Seoul and Incheon account for the next largest number of casinos. They remained open due to a large expatriate population. Incheon hosts two integrated casino resorts. One, Project Inspire is project of Mohegan Gaming and Entertainment. Largely underway, it plans 1,300 premium hotel rooms, retail, a 15,000 seat arena, amusement park and 20,000 square meter casino.
Less expansive is Midan City Resort Complex, which would have 751 rooms, MICE (Meetings, Incentives, Conventions, Exhibitions) space and a theater.
Busan, the country’s second largest city, hosts a large expatriate population, who have helped keep its two casinos alive.
Hurting the country’s foreigners only casinos is China’s zero-tolerance Covid policy, which mandates long quarantine periods of up to 28 days.
The Korean government is considering relaxing its foreigner only policy for the casinos in Jeju, allowing up to a dozen visits a year. It is also considering allowing proxy gambling. This allows a resident of another country to send someone in his or her place to place bets for that person.
But few expect these policy changes to make a dent in what is currently an uncertain Korean casino sector.
