South Korea’s Saemangeum Development Corporation is seeking investors for a major integrated resort as it considers proposals involving either a foreigners-only casino or, subject to legislative change, gambling access for Korean nationals.
SDCO president Na Gyeong-gyun said the state-owned developer was holding discussions with domestic and overseas companies over a resort combining hotels, shopping, entertainment and meetings, incentives, conferences and exhibitions facilities.
SDCO is reviewing a proposal from an unnamed South Korean company to invest between KRW5tn and KRW7tn (US$3.5bn to $4.9bn) in a 3,600-room resort with a convention centre, commercial facilities and a casino open to Korean residents.
The company has reportedly been in discussions with SDCO for approximately two years. No agreement has been reached and SDCO has said any development partner would be selected through an open tender. No potential casino operator has been identified.
A casino accepting Korean customers would require an amendment to the Saemangeum Special Act and broader political and public support. Kangwon Land is currently the only casino in South Korea permitted to admit local residents.
Na said: “National consensus is needed, and it takes considerable time to push forward. The goal is not an open casino itself but to build an integrated resort.”
Foreign companies have separately expressed interest in developing an integrated resort with a casino restricted to overseas visitors.
Foreign investors committing at least $500m to a tourism project in Saemangeum can become eligible to apply for a foreigners-only casino licence under existing legislation. Reaching the investment threshold does not guarantee approval, which must also be granted by the Ministry of Culture, Sports and Tourism.
The eventual development could appoint a specialist casino operator or include a gaming company within an investment consortium. SDCO has not disclosed whether any casino businesses are involved in the current discussions.
“Saemangeum must have an anchor facility to spur tourism demand and investment,” Na said. “We will create global living conditions through integrated development that encompasses tourism, shopping, lodging and the MICE industry.”
SDCO is considering a 471,933sq m site within Saemangeum Smart Waterfront City for the development.
The proposal has attracted opposition from civic groups concerned about gambling harm and the possible wider expansion of casinos accepting Korean residents. Na said public consultation and legislative changes would be required before any such development could proceed.
Saemangeum covers 409sq km of reclaimed land and water on South Korea’s Yellow Sea coast. The wider national development has a projected cost of KRW22.79tn ($16bn), comprising KRW12.14tn in central government funding, KRW950bn from local government and KRW9.7tn in private investment.
