Operating 'Seven Luck Seoul Dragon City Branch'... 10-Year Contract
"Positive Effects Expected in the Future Including Airport Accessibility"
The state-run foreigner-only casino operator Grand Korea Leisure (GKL) has ushered in the "Yongsan era." With the presidential office relocation, the upcoming complex district featuring business and leisure facilities, and the easing of COVID-19 quarantine measures, it is expected to be a favorable factor in attracting foreign tourists in the post-COVID era.
According to the casino industry on the 1st, GKL began operating a new casino at 'Seoul Dragon City' in Yongsan-gu, Seoul, starting from the 31st of last month. The new venue is named 'Seven Luck Seoul Dragon City Branch.' This is a relocation of the casino previously operating at the Millennium Seoul Hilton Hotel (Seven Luck Gangbuk Hilton Branch), which ceased operations at the end of last year.
GKL stated that as the Millennium Seoul Hilton decided to close, they sought a new venue and completed a lease contract with Seoul Dragon City on December 28, 2021. The contract period was signed as a long-term 10-year lease starting from August 16 of last year. A GKL official explained, "We searched for candidates that met the conditions of a 5-star hotel where a casino can be established, that are easily accessible to foreign tourists, and where the venue can be operated more comfortably and stably. We judged Seoul Dragon City to be the most suitable location."
The new venue's area is about 20% larger than the previous Seven Luck Gangbuk Hilton Branch (1,728㎡), and the number of tables has increased by five. Seoul Dragon City, which began operations in November 2017, is considered a newly built hotel. With a total of 1,730 rooms, it is advantageous for attracting large-scale tourists and international events. From the casino's perspective, it has all the effective conditions to attract VIP customers.
Additionally, after GKL signed the contract with Seoul Dragon City, major issues have been concentrated in Yongsan, such as the Yoon Suk-yeol administration relocating the presidential office, and various development projects including Yongsan Park, Yongsan International Business District, and MICE (Meetings, Incentives, Conferences, and Exhibitions). There is a high possibility that future international business events and group tourism demand will also be concentrated here.
GKL operates three venues: COEX in Samseong-dong, Gangnam-gu, Seoul; Seoul Dragon City; and Lotte Hotel in Busan. The predecessor of Seoul Dragon City, the Gangbuk Hilton Branch, was the most visited by foreign tourists among these. As of November last year, out of 44,681 cumulative monthly visitors, more than half, 23,094, visited the Gangbuk branch. However, the drop amount (the amount exchanged for chips to play games) was 79.4 billion KRW during the same period, less than COEX's 135.2 billion KRW. This is due to differences in the number of tables and VIP customers known as "big spenders." As of November last year, COEX had 125 tables, while Gangbuk Hilton had 71. During the same period, VIP customers from Japan, China, and other countries numbered 108 at COEX and 35 at Gangbuk Hilton. Expanding VIP customer acquisition is an important strategy in the customer composition.
In the securities industry, it is anticipated that "With GKL relocating to Dragon City, it can aim to expand its scale compared to the existing venue, and improvements to outdated facilities will also be made. Considering airport accessibility, positive effects on future customer inflow are expected."
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