Jeju Island, LT Casino Business Location and Area Change Approval

[Asia Economy Honam Reporting Headquarters Reporter Park Chang-won] Jeju Special Self-Governing Province announced on the 8th that it has decided to grant conditional approval for the 'Change of Location and Area of LT Casino' requested by LT Entertainment Co., Ltd. on January 29, on the condition that the company faithfully implements the community contribution plan and the opinions presented by the Provincial Council.

The details of the change approval include relocating from Lotte Hotel Jeju in Seogwipo City to Jeju Dream Tower Complex Resort in Nohyeong-dong, Jeju City, and changing the casino floor area from the existing 1,176㎡ to 5,367㎡.

Before applying for the casino business relocation and change, LT Casino underwent a casino industry impact assessment review by the Casino Impact Assessment Committee on August 13 of last year.

The casino industry impact assessment is a system first implemented nationwide in Jeju Province. Before applying for approval for new establishment, relocation, or expansion of casinos, an impact assessment report is prepared, including the extent of impact on surrounding areas, mitigation measures for side effects, regional contribution plans, and results of public opinion surveys among residents. This report undergoes primary verification by the Impact Assessment Committee, composed of legal experts, academics, civic groups, and local residents.

LT Casino is the first case since the implementation of the casino industry impact assessment system, receiving a suitability judgment from 14 out of 15 committee members and a conditional suitability judgment from 1 member.

In particular, when the casino area increases by more than twice, according to Article 16, Paragraph 7 of the 'Jeju Special Self-Governing Province Casino Business Management and Supervision Ordinance,' the opinions of the Provincial Council must be heard.

Accordingly, at the '393rd Provincial Council Extraordinary Session' held last month, the council presented opinions including compliance with over 80% employment of local residents and maintaining 80% youth employment.

Additionally, at the Casino Business Supervision Committee meeting held on the 2nd, considering that 4 out of 8 casino operators in the province are currently closed due to the impact of COVID-19, the committee ordered the preparation of activation plans for casino operators and thorough management of the regional contribution guarantee plans proposed by LT Casino.

Jeju Province comprehensively reviewed the change approval application, including ▲ adequacy review of the business plan equivalent to that of a new casino license ▲ casino industry impact assessment review ▲ hearing of Provincial Council opinions ▲ collection of opinions from the Casino Business Supervision Committee.

As a result, it was judged appropriate to grant the change approval for LT Casino on the condition that LT Entertainment Co., Ltd. faithfully implements the community contribution plan in the submitted business plan and the opinions presented by the Provincial Council.

Kim Jae-woong, Director of the Tourism Bureau of Jeju Province, said, “Although investigations related to suspicions about the public opinion survey are currently underway, there have been no particular issues so far. Considering that this change approval can contribute to revitalizing the Jeju economy, which has been depressed due to COVID-19, through promoting local employment, regional contribution projects, and coexistence with local businesses, this decision was made after careful consideration.”

Meanwhile, Lotte Tour Development Co., Ltd., the operator of Dream Tower, is aiming to open the casino next month and is proceeding with new recruitment procedures.