The competition to obtain casino licences in Yeongjongdo, an economic zone near Incheon International Airport that South Korea is hoping to turn into a high-end casino city, is once again heating up.
The government’s new tourism strategy will, it is thought, relax financial rules so that foreign bidders can earn casino licences in the nation’s economic zones. “We are considering easing the bidding standards after receiving complaints that it is too difficult to meet the criteria of credit ratings,” said a government official. “But we have yet to decide on detailed plans.”
Last year, the Ministry of Culture, Sports and Tourism rejected applications for casino licences from Las Vegas-based Caesars Entertainment and Japan’s Universal Entertainment for failing to meet financial stability requirements. Foreign bidders are now hoping to renew their hopes of operating casinos in Korea now that the government is considering lowering the red tape.
Caesars, which created a joint venture with Indonesian conglomerate Lippo Group for the Korean project, in December appealed to the government to build a 330,000sq.m casino resort in the city that will cost up to 2.2 trillion won. Universal, controlled by Japanese billionaire Kazuo Okada, last month purchased a 136sq.m site in Yeongjong Sky City in a possible move to seek a casino licence again, according to industry sources.
The company plans to build two six-star casino hotels with 3,000 rooms, a business hotel, a shopping mall and other entertainment facilities.
On January 4, PNC Financial Services, which owns US-based PNC Bank, also submitted a letter of intent to the state-run land developer for a seven trillion won casino resort project.
Korean casino operator Paradise Group, together with Japan’s Sega Sammy Holdings, has already launched an 11,190sq.m resort project, with its construction planned to start in April for completion by 2017.
