• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

S. Korea slims new casino race to 9 sites, invites RFPs

Aug 28, 2015 Newsdesk Latest News, Rest of Asia, Top of the deck  


S. Korea slims new casino race to 9 sites, invites RFPs

South Korea’s Ministry of Culture, Sports and Tourism on Thursday published its latest strategy to develop new so-called integrated resorts (IRs) in the country, incorporating casinos that will be open to foreigners-only.

The government has narrowed – from 16 to nine – the new sites that will be considered for such venues and is now conducting a “request for proposal” (RFP) process. The RFP phase opened on Thursday and runs until November 27, the ministry said on its website. After the RFP phase ends “approximately two” licensees would be chosen, said Business Korea in an English language report published on Friday, citing the ministry.

The nine places shortlisted are said to be six free economic zones in Incheon, near to South Korea’s main international airport; plus Ung-dong in Jinhae Free Economic Zone of Gyeongsangnam-do; a redevelopment area in Busan North Port; and Yeosu Gyeongdo Tourism Complex in Jeollanam-do.

An earlier process organised by the ministry – that ran from February 27 to June 30 and described by investment analysts as a “request for concept” – attracted 34 interested parties, reported South Korean media in July.

JP Morgan Securities (Asia Pacific) Ltd said at the time that Macau casino operator Galaxy Entertainment Group Ltd and NagaCorp Ltd, operator of NagaWorld casino resort in Cambodia’s capital Phnom Penh, were among the 34 parties expressing interest.

Union Gaming Securities Asia Ltd said in a Friday note that winning projects must be completed within four years of the RFP phase and the minimum investment required by the government for each project would be KRW1 trillion (US$850 million), with a minimum foreign investment component of US$500 million.

RFP terms

The institution added that under the terms of the RFP the casino floor in each project would need to be 5 percent (or under) of total gross floor area. Additionally the venue would need to offer at least 1,000, 5-star, hotel rooms, 20,000 square metres (215,278 sq feet) of retail space; investment in meetings and conventions space worth at least KRW20 billion and a “themed attraction” investment of at least KRW70 billion.

There would need also to be at least two of the following in each project, according to Union Gaming: culture facilities; entertainment facilities; leisure/sports facilities; health/medical facilities; and food and beverage facilities.

Union Gaming analyst Grant Govertsen said: ‘The government will begin its RFP review in December and ultimately intends to issue two new IR licences. We believe these will likely be the final IR licences to be awarded for the foreseeable future in Korea (excluding-Jeju).”

Jeju Island is a holiday destination in the south of the country and where the local government has some semi-autonomous powers. Jeju already has small scale casino-hotels open to foreigners. South Korea allows mainland Chinese tourists visa-free access to Jeju if they travel there directly.

Union Gaming stated: ‘Given our view that Incheon is the preferred national IR area, we would expect both new IRs to be issued for this area. This in turn would bring the total number of IRs to four in Incheon, which includes two IRs already under construction: 1) Paradise [Co Ltd]/ Sega Sammy [Holdings Inc], and 2) Caesars [Entertainment Corp]/ Lippo [Ltd].”

Mr Govertsen added: “Ultimately, we believe the only other IRs in Korea will be located in Jeju, of which Genting Singapore [Plc] is already moving forward with its Resorts World Jeju project. We would also expect the government of Jeju to issue up to two additional IR licences for a total of up to three IRs in Jeju.”


  • tweet
Related articles
  • Wakayama casino RFP deadline affirms still 2 suitors
    Wakayama casino RFP deadline affirms...

    Jan 18, 2021  

  • Landing asks police to track down employee: reports
    Landing asks police to track down...

    Jan 08, 2021  

More news
  • Melco likely to take on more debt for expansion: Moody’s
    Melco likely to take on more debt for...

    Jan 20, 2021  

  • Visitors stayed longer in Macau in 2020, says govt
    Visitors stayed longer in Macau in...

    Jan 20, 2021  


Latest News

Melco likely to take on more debt for expansion: Moody’s

Melco likely to take on more debt for expansion: Moody’s

Jan 20, 2021  

Moody’s Investors Service Inc says it expects the ratio of adjusted debt to earnings before interest, taxation, depreciation and amortisation (EBITDA) of Macau casino operators Melco Resorts and...
Read More
Visitors stayed longer in Macau in 2020, says govt

Visitors stayed longer in Macau in 2020, says govt

Jan 20, 2021  

Suntrust gets OK for unit handling hotel, tourism biz

Suntrust gets OK for unit handling hotel, tourism biz

Jan 20, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"The increased focus we can now bring to our gaming and amusement business [after a spin-off of the firm's cash-handling product business] will bring us closer to the customer as we align our offerings more directly with their needs"

Sim Bielak

Global president of casino equipment supplier SuzoHapp



Most Popular

  • CNY 2021 unlikely to boost Macau casinos, say observersCNY 2021 unlikely to boost Macau casinos, say observers January 15, 2021
  • Casino op MGM China to pay most staff discretionary bonusCasino op MGM China to pay most staff discretionary bonus January 18, 2021
  • Wynn and Melco also flag bonus for Macau staffWynn and Melco also flag bonus for Macau staff January 19, 2021
  • Mass market play record 65pct Macau GGR in 4Q: govtMass market play record 65pct Macau GGR in 4Q: govt January 15, 2021
  • Malaysia Covid outlook negative to Genting Bhd: Moody’sMalaysia Covid outlook negative to Genting Bhd: Moody’s January 15, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us