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

South Korea announces $1.85 billion expansion of Gangwon Land Casino Resort

The South Korean government has announced a 250 trillion won ($1.85 billion) expansion of Gangwon Land, which will more than triple the size of the casino.

The government of South Korea, which owns and operates the casino resort, announced that the country will invest nearly $1.9 billion in the destination. In addition to expanding the casino area from 16,000 square meters to almost 50,000 square meters, the project will also bring a cultural complex and a new hotel to the destination.

A wellness center in the surrounding forest and attractions related to coal mining in the area are also planned. The project also includes additional meeting space to attract large international gatherings.

Kangwon Land is the only casino open to Korean residents. Other casinos in the country are explicitly reserved for foreigners.

Gangwonji is located in a remote area of Gangwon Province and is famous for its numerous coal mining facilities. The massive casino resort is owned by the South Korean government's Ministry of Trade, Industry and Energy and the Gangwon Province Development Corporation.

Resist Japan

The investment in Ewon Land comes as MGM Resorts International begins construction of Japan's first casino resort in Osaka. The more than $8 billion MGM Osaka hotel is scheduled to open in 2029 or 2030.

Osaka is only a short flight from Seoul and other major cities in South Korea. The flight time is less than two hours. South Korean officials say the $1.85 billion commitment to Gangwon Land is aimed at diversifying the resort and maintaining its appeal in the face of growing competition from Japan. The investment is the resort’s largest since the opening of Kangwon Land in 1998.

Through this project, we hope to stand out among domestic and foreign competitors in major cities,” said a government statement on the project.

Kangwon Land's current casino has approximately 100 gaming tables and 1,000 slot machines. The hotel has 700 rooms.

On weekends, it's often difficult to find an open seat in front of a table game or slot machine. Gangwon Land has become busier in recent years as Macau junket groups stop servicing VIP traffic from China and other Asian markets including South Korea.

The government says the $1.85 billion project will take many years to complete. Once construction begins, the temporarily expanded casino will be operational to accommodate more players immediately.

China's crackdown on VIP groups in Macau has led to significant investments by gaming operators in other Asian markets, including the Philippines. The Korean government wants to ensure that Gangwon Province remains an outstanding tourist destination.

Crowded Contest

Japan is not where Kangwon Land faces new competition. US-based Mohegan recently opened the first phase of its Inspire casino at Incheon International Airport, although the casino can only accommodate foreigners.

The South Korean government has benefited greatly from gambling in Gangwon Province. The casino welcomed about 2.5 million visitors last year. The company generated net proceeds of approximately $260 million to the South Korean government.

The expansion of the Gangwon land is called the "K-HIT" project. The abbreviation stands for "Highly Integrated Tourism in Korea."