Last week, South Korea’s Ministry of Culture, Sports and Tourism selected nine sites eligible for foreigners-only integrated resorts. The ministry will now conduct an RFP process for each site. A previous, non-binding, RFP process had attracted 34 proposals across 10 distinct regions throughout Korea. One of those regions is Incheon, for which there were 16 different RFP proposals for six sites.
Six of the nine sites that have now been short-listed are within Incheon, one is in Busan, and one site each in the southeast province of Gyeongnam and the southwest province of Jeonnam.
The RFP process has specifically excluded Jeju because that Jeju is a self-governing province and will conduct it’s own process.
Just some of the criteria for an IR within the RFP include:
• Minimum investment of KRW1,000 billion (US$850 million)
• Minimum foreign investment component of US$500 million
• Casino floor must be 5 percent or less of total floor space
• At least 1,000 five-star quality hotel rooms
• 20,000 square meters of retail space
• MICE facilities investment of at least KRW20 billon (US$17 million)
• Themed attraction investment of at least KRW70 billion (US$60 million)
In addition, each IR must contain at least two:
• Culture facilities
• Entertainment facilities
• Leisure / sports facilities
• Health / medical facilities
• Food & Beverage
The successful applicants must complete their projects within four years of the RFP.
RFPs are due by November, and the government will begin its RFP review in December and ultimately intends to issue two new IR licenses.
Union Gaming Group analyst Grant Govertson says this could be the final licenses available in Korea, not including Jeju.
“We believe these will likely be the final IR licenses to be awarded for the foreseeable future in Korea,” he wrote in a note to investors. “Given our view that Incheon is the preferred national IR area, we would expect both new IRs to be issued for this area. This in turn would bring the total number of IRs to four in Incheon, which includes two IRs already under construction: 1) Paradise/SegaSammy, and 2) Caesars/Lippo. Ultimately, we believe the only other IRs in Korea will be located in Jeju, of which Genting Singapore is already moving forward with its Resorts World Jeju project. We would also expect the government of Jeju to issue up to two additional IR licenses for a total of up to three IRs in Jeju.”
There was no indication in this announcement that the government was considering allowing Korean citizens to gamble in these IRs.
