Concerns have been raised about a potential surplus of casinos in South Korea, with the industry already hit by a global economic slowdown, lower VIP revenue globally, and unstable demand, local media reports.
At a seminar held at Seoul National University this week, Pyo Hak K, an honorary professor of economics at SNU commented any new resorts being constructed have a great chance of resulting in excess supply. “Additional construction of integrated resorts without a proper estimation of demand can lead to oversupply, as such is the case on Jejudo Island where (resorts there) are sustaining on deficit operation,”
Currently, there are two integrated resort projects being constructed on Yeongjondo Island by korean casino-operator Paradise and Chinese-U.S consortium LOCZ Korea, scheduled for the end of 2017.
Experts attending the seminar pointed out outside factors, such as China’s anticorruption crackdown and its slowing economic growth could discourage Chinese gamblers, who are a main source of revenue for these casinos.
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