Hong Kong-listed New Silkroad Culturaltainment Ltd, which has previously reported involvement in a foreigner-only casino business in Jeju, South Korea, says it is mulling “disposal of its South Korean business” amid “stagnation” of its interests there.
It gave the information in its 2023 annual results, issued on Wednesday.
It stated: “The entertainment licence in Jeju, South Korea recorded a non-recurring impairment of approximately HKD46.3 million [US$5.92 million].”
This was in light of the “deteriorated performance of the entertainment business and the unfavourable market conditions,” it noted.
Its 2023 revenue from external customers in South Korea was only HKD1.18 million, though in 2022 it booked no revenue at all from there.
New Silkroad stated in its latest filing: “After careful consideration, the group intends to explore a potential disposal of its South Korean business at the appropriate time if any suitable opportunity arises.”
In June 2022, a Jeju government official – who asked not to be identified by name – told GGRAsia that MegaLuck casino, run by New Silkroad, was being relocated to the Jeju Shilla Hotel, from its previous location at the Jeju KAL Hotel.
Wednesday’s update from New Silkroad made no specific reference to a casino, but said its South Korea interests involved “development and operation of integrated resort and cultural tourism”. The term “integrated resort” is typically for a casino venue with other tourism facilities.
New Silkroad is also involved in the development and operation of real estate in Australia; and production and distribution of wine in mainland China.
Its 2023 loss attributable to shareholders was HKD82.3 million, on revenue that grew 27.0 percent year-on-year, to HKD469.18 million.
The 2023 loss was a narrowing on New Silkroad’s 2022 loss amounting to HKD112.5 million.
According to its full 2022 annual report, a subsidiary called MegaLuck is involved in “operation of entertainment business” in South Korea. New Silkroad also has a real estate unit in that nation.
In its 2018 annual report, the parent had specifically referred to “MegaLuck Co Ltd” as being engaged in “operation of a casino business” in South Korea.
