INSPIRE Entertainment Resort, Korea’s largest foreigner-only casino complex, has been put up for sale, according to The Korea Times.
Private equity firm Bain Capital initiated the sale process for the sprawling resort located in Incheon’s port city. The firm assumed management control of the resort’s holding company, MGE Korea Limited, in February after the previous operator failed to meet loan conditions.
The Korea Times obtained an official notice confirming the sale, which describes the opportunity as acquiring a newly built, high-end resort complex with a fully approved casino license. The notice indicates the sale follows an open market bidding process intended to establish the property’s fair market value and complete legal ownership procedures.
The integrated resort opened last year near Incheon International Airport. The complex features three five-star hotel towers totaling 1,275 rooms, the nation’s largest foreigner-only casino, and a convention center. Additional amenities include Korea’s first 15,000-seat multipurpose arena for live entertainment and a glass-domed indoor water park.
Despite generating KRW219 billion ($157 million) in revenue during its 2024 fiscal year from October 2023 to September 2024, INSPIRE posted an operating loss of KRW156.4 billion ($112 million). The resort was originally developed by Mohegan Gaming & Entertainment, which operates eight integrated resorts worldwide.
Ownership transfer process
In 2021, a Mohegan subsidiary secured a $275 million loan from Bain Capital, using shares in the Korean unit as collateral. When Mohegan failed to meet loan terms, management control transferred to Bain Capital earlier this year.
According to industry sources, while Bain Capital gained effective management control, it has not obtained full ownership and must complete additional procedures to secure legal title. The open bidding process serves both as a formal sale mechanism and as a way to enable independent valuation by third-party accounting firms.
Bain Capital initially planned to take full ownership through a credit bid, receiving equivalent value in shares based on fair market value rather than cash compensation. However, the firm stated it would seriously consider any offers submitted through the open bidding process.
In a recent interview with AGB, Wade Howk, Chief Operating Officer of INSPIRE, emphasized that in practical terms, there were no significant changes. The management team remained in place, as did the employees, vendors, and regulatory relationships, with operations continuing as usual. Looking ahead, the team is maintaining a strong focus on the Chinese and Japanese markets while also showing growing interest in medical tourism.
Regulatory considerations
The Ministry of Culture, Sports and Tourism, which issued INSPIRE’s casino license, declined to comment until more details are confirmed. Two possible outcomes could emerge from the bidding process: Bain Capital securing full legal ownership or a third-party company acquiring control.
If a third party takes over, the casino license status remains uncertain. While share transfers alone do not require separate approval, changes in company leadership would require ministry reapproval under license terms.
When Mohegan was selected as the operator in 2015, it entered a conditional agreement to run a foreigner-only casino while maintaining all necessary permits. The government required meaningful public benefit and contributions to cultural development, positioning the resort as part of a national strategy to develop a global tourism hub centered on Korean culture.
Expansion plans and regulatory framework
After taking control, Bain Capital submitted a new business plan outlining investment attraction strategies and phased expansion, including a theme park, shopping mall, and golf course. Any ownership change could raise questions about plan continuity.
A ministry official stated that regardless of ownership changes, INSPIRE remains obligated to meet specific investment and construction requirements. The ministry will continue monitoring compliance with license terms.
Korea maintains strict gambling regulations for citizens due to addiction concerns and community impact considerations. Among the country’s seventeen casinos, only Kangwon Land in Gangwon Province serves Korean nationals, while others cater exclusively to foreign visitors.
INSPIRE’s financial struggles stem primarily from underperforming core attractions, particularly the foreigner-only casino. Despite its strategic airport location, which was expected to attract steady international tourist flows, actual turnout has fallen significantly short of projections. Chinese visitor numbers, a key target demographic, have particularly disappointed expectations.
