A new rolling commission program launching in May at the Jeju Dream Tower could add more than KRW 100 billion ($66.78 million) in annual revenue for operator Lotte Tour Development, according to Hana Securities.
The program leverages Korea’s 15 percent casino tax rate versus Macau’s 40 percent rate, giving the Jeju property room to offer more competitive commission terms to junket operators and premium players than rivals in the Chinese gaming hub.
As reported by local media outlet Aju Press, Hana Securities cited the rolling commission launch as one of three operational levers supporting its bullish view on Lotte Tour Development, which the brokerage designated its top pick in the leisure sector earlier this week.
The second lever is capacity expansion on the Jeju casino floor. Gaming tables increased from 149 in 2024 to 169 by the first quarter of 2026, with three additional tables planned. Slot machines are set to expand from 287 in 2025 to 371 this year.
The third lever concerns hotel room allocation. Of the 1,600 rooms at the integrated resort complex, the share offered as casino complimentary inventory has grown from 30 percent to between 45 percent and 50 percent. Hana Securities estimates that raising that share to 60 percent could push monthly casino revenue to KRW 60 billion ($40.07 million).
The call follows first-quarter earnings disclosed on May 14th, when Lotte Tour Development reported a 121.5 percent jump in operating profit to KRW 28.8 billion ($19.23 million) on revenue of KRW 156.2 billion ($104.32 million). Operating margin rose to 18.4 percent from 8.3 percent a year earlier.
The Jeju Dream Tower’s casino segment drove the outperformance. Casino revenue rose 40.3 percent to KRW 118.6 billion ($79.21 million), visitor entries grew 37.3 percent to 150,553, and table drop — the amount of money exchanged for chips — increased 36.7 percent to KRW 573.9 billion ($383.29 million). The casino’s hold rate reached 22.6 percent in April, approaching the 26.1 percent average recorded by Macau’s nine major Cotai integrated resorts.
The structural backdrop for the rolling program launch is the return of Chinese tourists to Jeju under the island’s visa-free entry program and the lifting of China’s unofficial restrictions on Korean tourism. Casino drop at the Dream Tower rose to KRW 2.77 trillion ($1.85 billion) in 2025 from KRW 1.73 trillion ($1.16 billion) in 2024, representing a 60 percent increase.
Hana Securities indicated that additional debt refinancing opportunities could emerge in the second half of 2026, when stronger cash flow, the new rolling program, and the peak tourism season are projected to converge.
