South Korea’s Grand Korea Leisure (GKL) has denied that it has made any firm decision on developing a casino resort in Seoul, following recent media reports suggesting a strategic shift by the state-run operator.
In a regulatory filing on Tuesday, GKL said the disclosure was issued in response to a report published on January 19th by The Korea Economic Daily, which claimed that the company was considering the development of a casino resort in the capital. GKL stated that the matter remains ‘undetermined’.
The company said it is currently ‘preparing to apply for a preliminary feasibility study with the Ministry of Economy and Finance’ regarding the potential securing of its own business site, but emphasized that ‘no specific details have been decided at this stage’. GKL added that it would provide a further disclosure ‘when specific matters are confirmed or within one month’.
According to the Korea Economic Daily report, GKL has been reviewing a major strategic shift after operating foreigner-only casinos on leased hotel premises for more than 20 years. The report said the company is examining options to secure its own business site, particularly in Seoul’s urban core, with the aim of developing what it described as a ‘flagship integrated resort’.
The newspaper cited comments from GKL President Yoon Doo-hyun, who said intensifying competition in South Korea’s foreigner-only casino sector has exposed the limitations of the company’s current operating model.
“With the foreigner-only casino market now a red ocean, it is difficult to provide the facilities customers want under a leased business model,” Yoon was quoted as saying.
He added that changing customer expectations have further highlighted these constraints. “Customers who come with their families want pools, shopping, and Korean medical services, which current facilities cannot offer,” the report quoted him as saying.
Yoon also said the company would “actively pursue securing its own business site that can serve as a flagship for urban integrated tourism,” according to the newspaper.
