GGRAsia – Paradise Co growth sees it on S.Korea antitrust watch list

Paradise Co growth sees it on S.Korea antitrust watch list

May 17, 2024 Newsdesk Latest News, Rest of Asia, Top of the deck

Paradise Co Ltd, an operator in South Korea of foreigner-only casinos, is one of seven companies added to a list of firms subject to enhanced supervision by the country’s antitrust regulator, the Fair Trade Commission.

The information was reported by South Korea’s Yonhap News Agency, saying the newcomers boosted the list to 88 companies.

Under South Korean law, conglomerates with assets of KRW5 trillion (US$3.68 billion) or more are designated as “large corporations”, and are required to file publicly details on interaffiliate transactions, their ownership structure and key information on nonaffiliates, outlined the news outlet.

The regulator was quoted as saying in the Wednesday annoucement: “The increase in the number of companies on this year’s watchlist came as entertainment, leisure and tourism industries, among others, have grown markedly thanks to the rising popularity of Korean culture and recovering consumer sentiment after the Covid-19 pandemic.”

Among the newcomers to the watch list was HYBE Co Ltd, the entertainment firm behind K-pop group BTS, because of what was described as the strong performance of its affiliated companies and rising loans.

It was reportedly the first time that an entertainment group was added to the list.

Paradise Co Ltd reported net income attributable to shareholders of nearly KRW25.94 billion for the first quarter of 2024, according to a filing published on May 9.

The firm directly operates three casino venues: Walkerhill in the capital Seoul; Paradise Jeju, on Jeju island; and a property in the port city of Busan.

Paradise Co also runs – with Japan’s Sega Sammy Holdings Inc – the Paradise City resort at Incheon.

In March, Paradise Co confirmed to GGRAsia that a resolution made by its board to delist from the country’s KOSDAQ stock index was because the group wished to move its listing to the KOSPI.

The latter is described by the Korea Exchange as the “leading index” of the South Korean bourse. According to business service provider PwC, KOSDAQ instead supports “venture and small and medium-sized companies’ smooth financing”.