South Korea Announces $1.85B Expansion of Kangwon Land Casino Resort

The South Korean government has revealed a 250 trillion Korean won (US$1.85 billion) enlargement of Kangwon Land that will increase the area of its casino floor more than threefold. 

The South Korean government, responsible for the ownership and operation of the casino resort, announced that the nation will pour close to $1.9 billion into the site. In addition to increasing the casino area from 167,000 square feet to almost 533,000 square feet, the project will introduce a cultural venue and a new hotel to the location. 

A wellness center located in the nearby forest and attractions linked to the area’s extensive coal mining industry are also being developed. The initiative also features expanded convention facilities to attract major global events. 

Kangwon Land is the sole casino accessible to residents of South Korea. The other casinos in the country are specifically designated for foreign visitors. 

Kangwon Land is situated in a secluded region of Kangwon Province, renowned for its numerous coal mining operations. The vast casino resort is owned by the Ministry of Trade, Industry, and Energy of the Korean government along with the Development Corporation of Kangwon Province. 

 

Repelling Japan 

The investment in Kangwon Land occurs while MGM Resorts International begins constructing Japan’s inaugural casino resort in Osaka. The over $8 billion MGM Osaka is expected to launch in 2029 or 2030. 

Osaka is only a brief flight away from Seoul and other key Korean cities, with travel times under two hours. Korean government representatives state that the $1.85 billion investment in Kangwon Land aims to diversify the resort and preserve its appeal as competition emerges from Japan. The investment marks the resort's biggest allocation since Kangwon Land began operations in 1998.

"Through this project, we plan to differentiate ourselves from domestic and foreign competitors located in large cities,” the government’s statement on the project read.

Kangwon Land's existing casino features approximately 100 table games and 1,000 slot machines. The hotel offers 700 accommodations. 

During weekends, it can be challenging to locate an available spot at a table game or slot machine. As junket groups in Macau have ceased serving VIP clientele from China and other Asian regions, such as South Korea, Kangwon Land has experienced increased activity in recent years. 

The government announced that the $1.85 billion project will require several years to finish. As construction begins, a temporary larger casino will function to quickly provide more gamblers with a place to sit. 

China's enforcement against VIP groups in Macau has led gaming operators to make significant investments in various Asian markets, such as the Philippines. The South Korean government aims to ensure that Kangwon Land continues to be a leading destination. 

 

Overcrowding Rivalry 

Japan is not the location offering Kangwon Land new rivals. US-based Mohegan has recently launched the initial phase of Inspire at Incheon International, but the casino is only open to foreign visitors. 

The South Korean government gains significant advantages from gaming at Kangwon Land. Last year, the casino received approximately 2.5 million guests. The company provided the South Korean government approximately $260 million in net earnings. 

The expansion of Kangwon Land is referred to as the “K-HIT” project. The abbreviation represents “Korea High Integrated Tourism.”