Don’t relax investor qualifications, warns paper
By the end of the year, the government of South Korea will issue two new casino licenses to investors willing to spend a minimum of KRW1 trillion (US$923 million) to develop there.
Officials have already approved two licenses for foreigners-only gaming halls. One went to Caesars Entertainment and Hong Kong-listed Lippo Ltd., and one to Paradise Co. Ltd., in partnership with Japan’s Sega Sammy Holdings Inc. and possibly SJM Holdings Ltd., Macau’s leading operator. The first two casinos, based in Incheon, are expected to open before the XXIII Winter Olympics, to be held in Pyeong Chang in 2018.
The Korea Herald reports that South Korea is now the third most popular destination for Mainland Chinese tourists after Hong Kong and Macau. That figure is expected to reach 6.1 million by the end of this year, up about 40.9 percent from 2013. The number grew by more than half from 2012 to 2013.
A partnership of Genting Singapore, developer of the Resorts World Sentosa Casino, and Landing International Development Ltd, a mainland China property developer, hopes to break ground this year on a US$2.2 billion integrated resort project on the vacation island of Jeju. Landing International just announced the grand reopening of a renovated casino at the Hyatt Regency Jeju Hotel; it controls the resort, and the casino is owned by Grand Express Korea Co. Ltd., a joint venture with Genting Hong Kong Ltd., which invested KRW130 billion (US$117 million) in the project.
The foreigners-only casino at the Hyatt Regency Jeju Hotel will operate under the name Genting Jeju. It has 26 baccarat tables, one blackjack table, one tai sai (sic bo) table, one roulette table and 16 slot machines.
“The opening of Genting Jeju Casino marks a big step forward on the company’s development of integrated resort and tourism properties in the global markets,” said Yang Zhihui, chairman of Landing International. “As one of the most striking landmarks in Jeju, Genting Jeju Casino is expected to drive tourism and retail growth in the city, further enhancing Jeju’s leading position in Korea’s tourism.”
Jeffrey Teoh, CEO of Genting Jeju, said Genting Hong Kong is committed to having “an active role (in) the development of Jeju’s tourism industry. … We will continue to share our international expertise in leisure and entertainment to further support and enhance the overall domestic tourism industry here on Jeju Island.”
The Korea Times takes a dim view of gaming as an economic driver. In a January 19 editorial, the publication asked, “Are there no better ways of stimulating investment?”
The administration of President Park Geun-hye “calls for sharply relaxing the qualifications of foreign investors,” the Times noted, allowing those with less than stellar credit to enter the market. “Gambling resorts could be geese laying golden eggs.”
“No less problematic are the hefty financial and tax incentives for local and foreign participants,” the publication continued. “If and when things go awry because of the glut of gambling facilities and other reasons, individual investors and even taxpayers here will be left holding the bag.”
