South Korean gaming operator Kangwon Land Inc., has announced a change in leadership. The vice-president of the firm, Choi Cheol-Gyu, substituted the former CEO Lee Sam-Geol after his resignation last Friday.
The appointment became public on Tuesday through a filing on the South Korean Stock Exchange.
Kangwon Land operates the only casino in Korea that allows the admission of Koreans, located inside the Kangwon Land Resort in the Kangwon province area of South Korea.
The ex-CEO, Lee Sam-Geol, was appointed in April 2021 for a three-year term, and his departure before the term was due to the company’s challenging situation.
According to reports, allegations of a “lack of communication” and neglect of local businesses had mounted, prompting calls for his resignation from politicians and community figures.
Kangwon Land received its lowest-ever rating of “D” in the government’s annual “public organization performance evaluation.” The assessment highlighted various issues, including a deficiency in “customer-attracting content” at the resort, inefficiencies in labor costs, instances of workplace sexual harassment and bullying, and corruption linked to staff recruitment.
Additionally, during the same month, the company faced significant financial penalties, with a fine amounting to KRW3.23 billion ($2.5 million at present) imposed for 182 violations related to anti-money laundering.
The company reported net profits of KRW73.8 billion ($56.2 million) for 3Q23, a 19.4 percent decrease from 2Q23 and a slight 1.3 percent decline on a year-on-year basis.
