Kangwon Land Inc, the operator of the Kangwon Land casino complex (pictured) in South Korea, has seen a local court partially rule in its favour regarding the firm’s contribution to the so-called “Abandoned Mine Fund”.
Kangwon Land, a resort with the only casino in South Korea open to locals, is located in a remote upland area a three-hour drive east of Seoul. Part of its function is to support economically the local community, a former mining district.
The authorities in the country’s central Gangwon province, home to Kangwon Land, amended in December 2024 a special legislation to require Kangwon Land Inc to make quarterly payments to the Abandoned Mine Fund, rather than biannual payments, according to local media reports.
Under Article 11 of the “Special Act on the Assistance to the Development of Abandoned Mine Areas,” the casino firm is required to contribute 13 percent of its casino revenue to the Abandoned Mine Fund. The percentage remained unchanged despite the legislation amendment.
The first such quarterly payment – in the amount of KRW44.7 billion (US$32.2 million) – was to have been made in May this year. It was based on the firm’s gross gaming revenue (GGR) generated in the first-quarter of 2025, according to the amended legislation.
Kangwon Land Inc said in April that gaming sales for the three months to March 31 stood at KRW316.8 billion, flat from a year ago.
Prior to the amendment, the biannual amount that Kangwon Land Inc would have to contribute to the Abandoned Mine Fund was determined in April or May of the following year, after the firm’s yearly GGR had been confirmed.
The casino operator filed a lawsuit against the change, arguing that the payments should continue to be made biannually, following the usual timeframe. Under the amendment, each payment would have to be settled within two months of the end of each quarter.
In its lawsuit, Kangwon Land Inc also asked the court to annul the provincial government’s demand for the KRW44.7-billion payment.
As per media reports, the country’s Chuncheon District Court ruled last week that while the amendment was lawful, the requirement for quarterly payments in such short notice could result in an event of default for Kangwon Land Inc.
While keeping the contribution amount unchanged, the ruling said the company should be given more time to settle the payment to the Abandoned Mine Fund.
In full-year 2024, Kangwon Land Inc paid an aggregate of KRW177.34 billion to the Abandoned Mine Fund, according to the firm’s sustainability report, published in August.
Kangwon Land Inc is currently developing a new building – including a second casino – at Kangwon Land, due to launch in early 2028.
According to the company, the project aims to strengthen the group’s non-casino business, and includes initiatives such as establishing a wellness centre, developing forest trails, constructing signature pool villas, and building new hotels.
