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Can South Korea’s only local casino delay KRW 44.7bn quarterly payments?
Kangwon Land Inc has secured a partial court victory regarding its contributions to South Korea’s Abandoned Mine Fund, with judges ruling the casino operator should receive more time to make quarterly payments.
The Chuncheon District Court found that whilst legislative amendments were lawful, requiring quarterly payments on short notice could cause the company to default.
Gangwon province authorities amended legislation in December 2024 to require Kangwon Land to make quarterly rather than biannual payments to the fund. The casino operator must contribute 13% of casino revenue under the Special Act on Assistance to Development of Abandoned Mine Areas.
Court balances legal compliance with practical concerns
How can quarterly payments create default risks for a profitable casino?
The first quarterly payment of KRW 44.7 billion (US$32.2 million) was due in May 2025, based on Q1 2025 gross gaming revenue of KRW 316.8 billion. Kangwon Land’s Q1 gaming sales remained flat compared to the previous year.
Kangwon Land Inc filed a lawsuit arguing payments should continue biannually following established timeframes. Under the amendment, each payment must be settled within two months of each quarter’s end, compared to the previous system where biannual amounts were determined in April or May after yearly GGR confirmation.
The court ruling comes as South Korea seeks regulatory reform to meet growing regional competition in its gaming sector.
Mine fund supports former mining community
Why does South Korea’s only locals casino fund abandoned mine restoration?
Kangwon Land operates the sole casino in South Korea open to local residents, located in a remote upland area three hours east of Seoul. The resort’s function includes supporting the local community, a former mining district that requires economic assistance.
In 2024, Kangwon Land Inc paid an aggregate of KRW 177.34 billion to the Abandoned Mine Fund, according to its sustainability report published in August. The 13% revenue contribution represents a significant portion of the company’s casino revenue.
The payment schedule change reflects provincial authorities’ desire for more regular funding flows to support abandoned mine area development projects. The broader context of gambling regulation in South Korea shows how operators face various compliance requirements.
Expansion plans continue despite payment dispute
Can Kangwon Land balance mine fund contributions with major development costs?
Kangwon Land Inc is currently developing a new building including a second casino, scheduled to launch in early 2028. The project aims to strengthen the group’s non-casino business through initiatives including a wellness centre, forest trails, signature pool villas, and new hotels.
The expansion represents significant capital investment whilst the company manages ongoing Abandoned Mine Fund obligations. This development occurs as Korean casino shares have shown strength due to anticipated tourism recovery.
The partial court victory allows Kangwon Land to maintain its community support obligations whilst managing cash flow more effectively. The decision balances regulatory requirements with practical business operations for South Korea’s unique locals-only casino model.
Source: GGR Asia
