Paradise Co., a leading South Korean leading foreigner-only casino operator, has secured KRW550 billion ($379 million) in financing from Woori Bank to fund the construction of a new hotel in Seoul.
The investment is aimed at developing a luxury hotel in the Jangchung-dong area.
According to a filing with the Korea Stock Exchange on Wednesday, the total investment for the project is KRW575 billion ($395 million). Paradise Co., classified as a large corporation, will contribute a portion of its equity capital—KRW1.79 trillion ($1.23 billion), which represents 32.2 percent of the total investment.
The secured financing from Woori Bank is structured as a five-year facility loan, with a lump-sum repayment due at maturity. The loan carries an interest rate of the 91-day Certificate of Deposit (CD) rate plus 0.97 percent, resulting in a total rate of 3.81 percent based on the March 11th, 2025 CD rate.
The hotel development is part of Paradise Co.’s strategy to diversify its business portfolio and create synergies with its existing casino operations. The 18-story hotel, which will feature approximately 200 rooms and five basement levels, will cover 13,950 square meters.
Paradise Co. plans to draw down the loan in phases throughout the construction period. The company has delegated authority to its CEO for the execution of detailed financial arrangements, including loan schedules and collateral provisions.
Paradise Co. has described the hotel as a luxury property, with a focus on high-end services and amenities. The company has also noted that the project’s financial details and timeline may be subject to adjustments based on market conditions and internal progress.
As reported by AGB, the hotel project is set to begin in the first quarter of 2025, with the opening scheduled for 2028.
