From Korea★ Yeongjong Island to become Korea's "Macau" as progress made toward opening casino market to foreign investment

The foreign-funded Lippo & Caesars Consortium (LOCZ Korea) has passed the preliminary screening for a license to operate a foreigner-only casino on Yeongjong Island in Incheon. This is seen as a major step toward opening South Korea's casino market to foreign companies, with Yeongjong Island drawing intense attention as a potential "Korean Macau." This was reported by NNA, which distributes Asian economic news.

LOCZ Korea is a joint venture between Caesars Entertainment, the world's largest casino group, and Indonesia's Lippo Group. The foreigner-only casino will span 7,700 square meters, accounting for 5% of the total area of the integrated resort complex, which includes hotels and shopping malls. Upon completion, it will be one of the world's largest foreigner-only casinos.

The South Korean government's aim in opening its casino market to foreign investment is to stimulate the economy through foreign currency earnings. It is projected to create approximately 8,000 jobs during the construction period until 2018 and generate about 2,100 direct jobs upon completion. Furthermore, sales are expected to reach 680 billion won by 2027, ten years after opening. In that scenario, the direct tax revenue effect is estimated to amount to 127 billion won.

The target market is Chinese tourists, who account for nearly half of all visitors to Korean casinos. Concerns that Japan's potential legalization of casinos could draw away Chinese tourists also appear to have bolstered the push for opening the market to foreign investment.

This government decision is also seen as a tailwind for Japanese companies. It is expected to give momentum to the casino resort construction project on Yeongjong Island, being promoted by Okada Holdings Korea (the Korean subsidiary of Universal Entertainment) and Paradise Sega Sammy, a joint venture between the Paradise Group and Sega Sammy Holdings.

Attention is focused on how the birth of Yeongjong Island, Korea's version of "Macau," will reshape the power dynamics of Asia's casino market.