Foreign Casino 'Airstrikes on Korea' Visible

The government has decided to ease the requirements for foreigners' investment in domestic casinos on the 3rd, drawing keen attention from the industry.

The government has applied credit rating standards to foreigners investing in complex resorts (IRs), including casinos, but decided to abolish them as early as the second half of this year and allow them if they are judged to have comprehensive financing capabilities. A government official said, "The casino industry has a characteristic that even if it is a world-sized company, it is difficult to accurately meet its credit rating," adding, "It will be able to attract large-scale foreign capital to revitalize the economy and create jobs."

Since 2012, foreign casinos have been constantly exploring Korean landings, mainly in Yeongjong Island, Incheon. Currently, four to five companies, including three foreign companies, are mentioned in Yeongjong Island alone, and LOCZ, a joint venture between Chinese Indonesian developer Lippo and Caesars Entertainment in the U.S., is known to be the most active.

However, LOCZ was judged inappropriate by the Ministry of Culture, Sports and Tourism in June, and requested a re-examination in December last year. The domestic casino industry is strongly opposed to this.

At a time when the revision of the Free Economic Zone Act, which calls for the introduction of the public offering system, is becoming visible, suspicions of preferential treatment will inevitably arise if casino permits are obtained through the existing pre-examination system.

A domestic casino company claimed, "It is doubtful that LOCZ's re-claim of the government for the first time in six months is intended to obtain permission before it changes to a public offering system." An official pointed out, "There is a possibility that speculative capital will flow in if casino permission is obtained only through document screening."

Japanese Universal Entertainment is reportedly preparing for the casino licensing process in Yeongjong Island by joining hands with the Korea Land and Housing Corporation (LH). Universal was also judged inappropriate in last year's screening.

Las Vegas Sands, MGM, and Wynn are also reportedly interested in entering South Korea. However, some foreign companies are said to be conditional on allowing domestic casinos, so there are many concerns.

Local governments are also active in attracting casinos. The Saemangeum district in Jeollabuk-do, the site of the Hwaseong Universal Studio in Gyeonggi-do, the Osong Free Economic Zone in North Chungcheong Province, and the Jeju International Convention Center are considering or pushing for the casino.

The push for foreign capital to enter Korea is based on the judgment that it is easy to attract Chinese tourists, who are "big hands in casinos."

Professor Song Hak-joon of Baejae University said, "The Korean government will have to be aware of Japan's legalization process in the first half of this year to preoccupy the Asian casino market. However, as foreign companies consider Korea as an attractive investment destination, foreign capital should not flow indiscriminately."

In addition to credit ratings, the possibility of foreign investment funds being recovered early or avoiding reinvestment should be considered, he said. "It is also necessary to consider ways to ensure that there is no difference between domestic and overseas capital."

Source: 바카라사이트