Current President Kim Young-san's Term Ends Next Month
Candidate Applications Accepted Until 22nd... 3-Year Term
Performance Rebound Lags Behind Competitors
"Expert Needed to Dispel Past Nakhasan Controversy"
Grand Korea Leisure (GKL), a public tourism and leisure enterprise operating the foreigner-only casino Seven Luck, has begun the process of selecting a new president. As the casino industry accelerates efforts to attract foreign visitors following the transition to an endemic phase, attention is focused on whether GKL can welcome the right person to lead its relatively slow recovery back to normal. Voices are emerging that, unlike past appointments that sparked parachute controversies, the new leader should be someone with expertise in the related industry.
According to industry sources on the 17th, GKL is accepting applications for the next president through online and offline channels until 3 p.m. on the 22nd. The current president, Kim Young-san, who took office in 2021, is scheduled to end his term on the 31st of next month, and the successor’s term will also be three years from the date of appointment.
The GKL president recruitment process begins with the submission of documents by candidates, followed by document and interview evaluations conducted by the Executive Recommendation Committee (ERC), composed of outside directors and external personnel. The shortlisted candidates are then reported to the Public Institution Management Committee (PIMC) under the Ministry of Strategy and Finance as the first hurdle. Subsequently, the PIMC reviews the candidates, and after the recommendation of the Ministry of Culture, Sports and Tourism, the president appoints the new leader.
Because of this process, except for the 7th president Kim Young-san, a former Ministry of Culture, Sports and Tourism official, and the 4th president Lim Byung-soo, most other leaders have not been free from controversy over parachute appointments. This is because politicians or those closely connected to the administration were appointed regardless of their casino industry experience or understanding.
In the domestic casino industry, competitors have rapidly recovered from the plummeting performance caused by the COVID-19 pandemic and have surpassed pre-pandemic levels, setting record highs. However, GKL’s recovery pace has been relatively slow. Last year, GKL posted an operating profit of 51 billion KRW, marking a turnaround after three consecutive years of losses since the outbreak of COVID-19 in 2020. Nevertheless, this was only 53% of the operating profit (96.8 billion KRW) achieved in 2019.
An industry insider noted, "Due to GKL’s nature as a public enterprise, relatively strict standards are applied to budget execution and overall organizational operations," adding, "Presidents inevitably have to be more mindful of the administration, government, and political circles than those of private casinos." The insider further stated, "As a result, while GKL has been passive in costly new investments or marketing activities, it has focused on building achievements through public institution management evaluations and social contribution activities."
In fact, compared to competitors who prepared early to attract foreign tourists from key markets such as Japan and Greater China in anticipation of the endemic transition, GKL has been understood to focus more on reducing operating costs. For example, GKL’s marketing expenses last year were 59.9 billion KRW, down 34 billion KRW from 93.9 billion KRW in 2019.
An industry expert emphasized, "For casinos to shed the stigma of gambling industries and be recognized as high value-added tourism industries, it is important to have a system where experts familiar with current issues can express their convictions," and added, "This expertise should be strengthened not only in the appointment of GKL’s head but also in the composition of internal and external boards."
The GKL ERC has set key qualifications for the next president candidate, including "knowledge and experience related to tourism and the casino industry," "organizational management and leadership skills," and "capabilities to enhance the international competitiveness of the tourism and casino industry."
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