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Shin Hwa World planning a major capital reorganization

South Korean integrated resort operator Shin Hwa World Ltd has announced a Special General Meeting to be held on June 13th to discuss a major capital reorganization, which includes consolidating shares and reducing share capital to offset accumulated losses.

According to a Hong Kong Stock Exchange filing, the company plans to propose amendments to its bye-laws, which shareholders are to consider and approve. These changes aim to strengthen the company’s financial structure and align with legal requirements.

Shin Hwa World is the operator of Jeju Shinhwa World, a complex with a foreigner-only casino in Jeju, South Korea.

The company notes that the proceeds from the rights issue will be used for regaining and growing its market share, describing the task as the group’s ‘top priority’ in Jeju. 

‘The Rights Issue is necessary for allowing the Group to utilize the additional funds raised to enhance the core business of the Group and facilitate its growth,’ it defends.

‘It was expected that the lifting of pandemic control measures and restrictions would benefit the tourism industry. However, by the end of 2023, the business performance of the Group had yet to return to a satisfactory level.’

‘In order to turn around the situation, the Group believes that increasing the attractiveness of Jeju Shinhwa World by enhancing its services and amenities in its theme park, water park, hotels, gaming area, MICE, catering outlets, etc., would enable the Group to seize the opportunity to capture the post-pandemic rebound of tourism. In addition to improving its hardware, implementing more marketing programs and human resources development is also crucial for rebuilding the image of Jeju Shinhwa World.’

Viviana Chan
Viviana Chanhttps://agbrief.com/
Viviana Chan is an editor, interpreter, and journalist. With over a decade of experience, she writes in English, Chinese, and Portuguese. Viviana started her career in Macau-based newspapers, where she became passionate about the region's social, financial, and cultural development. Her writing focuses on the economy, emerging industries, gaming development, political affairs, and cross cultural-exchange in the business and cultural domains. She is avid for news and eager to discover and cover stories that generate public relevance.

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