Continuous Investment in Entertainment Sector Beyond Casinos
First Foreign Approval Through Economic Free Zone Act
Expected Creation of Korean-style IR Model
For the first time in 19 years, a foreigner-only casino facility is opening in South Korea.
After more than four years of phase one construction, the interior aurora of the 'Mohegan Inspire Entertainment Resort,' which temporarily opened on the 30th of last month on Yeongjongdo Island, Incheon. The corridor auroras connecting various parts of the resort are decorated with large LED screens displaying real-time videos. [Image source=Yonhap News]
On the 24th, the Ministry of Culture, Sports and Tourism announced that it had granted the final license for foreigner-only casino operations to Inspire Entertainment Resort located on Yeongjongdo Island in Incheon on the 23rd. This is the first new license for foreigner-only casino operations in 19 years since 2005, and the first license granted to foreign investors under the Free Economic Zone Act.
A review committee composed of 11 experts from various fields evaluated on the 19th that Inspire had met all the legal requirements necessary for the casino license and had fully implemented the integrated resort development plan submitted during the preliminary review.
Reflecting the review results, the Ministry of Culture, Sports and Tourism decided to grant Inspire the casino license. The ministry explained that this license for the foreigner-only casino at Inspire Resort is expected to create a Korean-style integrated resort model and further enhance the attractiveness and competitiveness of Korea's tourism industry.
However, the license conditions include continuous investment in entertainment sectors other than the casino and the fulfillment of additional investment plans.
Inspire is a corporation established in Korea, wholly funded by Mohegan, which operates eight integrated resorts worldwide. After being selected in March 2016 through a public contest for integrated resorts promoted by the Ministry of Culture, Sports and Tourism, Inspire received a preliminary review suitability notification, which is a provisional license for foreigner-only casino operations.
Over the past seven years, Inspire has invested about 1.6 billion USD (approximately 1.97 trillion KRW), including 695 million USD (about 960 billion KRW) from foreign investment, to develop the integrated resort. While developing the resort on approximately 462,809 square meters (140,000 pyeong) of land in the Incheon International Business District (IBC)-III near Incheon International Airport, the casino-exclusive operating area was minimized to about 4.1% of the total facility area.
The integrated resort is equipped with various tourism infrastructure, including a 15,000-seat multipurpose professional performance hall, 1,275 five-star hotel rooms, international standard conference facilities, a large indoor water park, shopping malls, and dining areas, aiming to attract not only foreign casino customers but also international tourists interested in Hallyu culture.
Additionally, Inspire employed 2,333 people by the end of last year and plans to hire an additional 2,400 by February, contributing to job creation in the tourism industry.
Based on its geographical advantage of being adjacent to Incheon International Airport, which is within four hours of Beijing, Tokyo, and Hong Kong, Inspire is expected to play a significant role in the East Asian integrated resort development competition with countries like Japan and Singapore through the development of various tourism products linked to the resort's facilities.
A Ministry of Culture, Sports and Tourism official stated, "Leveraging the geographical advantage of being close to Incheon International Airport and developing various tourism products linked to the integrated resort facilities, we expect to play a meaningful role in the East Asian integrated resort development competition with Japan, Singapore, and others."
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