Lotte Tour Development Becomes Second Largest Shareholder with 10% Stake
[Jeju=Asia Economy Honam Reporting Headquarters, Reporter Park Chang-won] It has been revealed that the National Pension Service (NPS) purchased shares of Lotte Tour Development and became the second largest shareholder in July.
On the 7th, the Participatory Autonomy Regional Movement Alliance (hereinafter referred to as the Participatory Autonomy Alliance), a coalition of 19 civic groups nationwide including the Jeju Participation Environmental Solidarity, submitted a public inquiry letter to the National Pension Service regarding its investment in Lotte Tour Development.
In a press release issued that day, the Participatory Autonomy Alliance questioned △ the reasons why the National Pension Service continues to invest in Lotte Tour Development △ whether they agree with asset management officials' evaluations that “institutions view positively the increasing possibility of Lotte Tour Development attracting a foreigner-only casino to Dream Tower,” despite operating losses of 10.7 billion KRW in the second quarter △ whether the investment aligns with the NPS’s emphasized principle of ‘responsible investment’ △ whether they have analyzed the serious social impacts that the Dream Tower casino could have on the local community △ and whether they have any intention to consider withdrawing their investment in Lotte Tour Development.
The Participatory Autonomy Alliance pointed out that the National Pension Service’s investment of pension premiums into the gambling industry is an act that seriously undermines public interest.
They also stated, “The National Pension Service must clearly express its stance on this issue, which could have serious social impacts on the residents of Jeju, and respond sincerely.”
Dream Tower is Jeju’s largest integrated resort with a total project cost of 1.6 trillion KRW, 38 floors above ground, a height of 169 meters, and a total area of 303,737 square meters. It is scheduled to open in October.
Lotte Tour Development is putting all its efforts into relocating the LT Casino within the Jungmun Tourist Complex to Dream Tower in time for the opening. They plan to expand the area from the current 1,176 square meters to 5,367 square meters, making it the third largest casino in South Korea.
The Jeju Casino Industry Impact Assessment Review Committee gave a ‘suitable’ decision on August 14 regarding the relocation of the casino. The governor will make the final approval decision after considering the opinions of the provincial council and the Casino Business Supervisory Committee.
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