South Korea’s Kangwon Land reported a sharp decline in net profit for the first quarter of fiscal year 2026, even as gross gaming revenue climbed to KRW360 billion ($245 million), with surging selling, general and administrative expenses and a collapse in non-operating income identified as the primary drivers of the earnings shortfall.
The integrated resort, the only casino in South Korea legally permitted to admit local residents, posted net profit of KRW39.7 billion ($27 million) for the three months ended March 31st, 2026, down 46.8 percent year-on-year from KRW74.6 billion ($51 million) in the same period last year.
According to the financial update, total sales rose 3.4 percent year-on-year to KRW378.9 billion ($258 million), driven primarily by gaming revenue, which increased 4.3 percent to KRW330.4 billion ($225 million). Non-gaming revenue declined 1.8 percent to KRW48.6 billion ($33 million).
Operating profit fell 7.2 percent to KRW68.9 billion ($47 million), with the operating margin contracting to 18.2 percent from 20.3 percent a year earlier. SG&A expenses rose 17.6 percent year-on-year to KRW33.8 billion ($23 million), reflecting a voluntary retirement package payment of KRW2.4 billion ($1.6 million) and higher depreciation costs linked to ongoing safety reinforcement works in ground subsidence areas within the resort, which are expected to add approximately KRW2.7 billion ($1.8 million) per quarter through January 2028.
The steepest drag on net profit came from non-operating items. Financial profit dropped 81.9 percent to KRW4.2 billion ($2.9 million), reflecting a decrease in fair value gains on financial assets, while other profit swung to a loss of KRW19.2 billion ($13 million).
Kangwon Land has budgeted KRW145.4 billion ($99 million) in capital expenditure for fiscal year 2026, covering projects including a second casino construction, a VIP floor renovation, and an infinity pool at its Grand Hotel.
