Korea Casinos Push Reform Ahead of Osaka IR Rivalry

Casino operators and tourism experts in South Korea are urging government reform as Japan moves closer to opening a large-scale integrated resort in Osaka, a development widely seen as a major competitive threat to the regional gaming and tourism market.

According to discussions reported by The Korea Times, stakeholders warn that the MGM Resorts International-backed project, scheduled to open in 2030, could divert both tourists and spending away from South Korea. Forecasts cited during the roundtable suggest the Osaka resort could attract as many as 7.6 million South Korean visitors annually, with overseas spending from those travellers reaching approximately $1.9 billion.

The concern is not limited to private operators. State-linked casino companies also say the impact could be structural, affecting the broader tourism ecosystem. Executives argue that Korea needs faster administrative processes and a shift in how casino destinations are positioned internationally if it is to remain competitive.

State operators highlight regulatory constraints

Representatives from Grand Korea Leisure (GKL) and Kangwon Land, both majority state-affiliated entities, described procedural delays and regulatory constraints as major obstacles to competitiveness.

GKL, which operates the foreigner-only Seven Luck casino brand across Seoul and Busan, said it is already feeling pressure from Japan’s upcoming entry into the market. A team leader at the company, Kim Eom-kwon, said the industry is facing what he called “a strong sense of crisis,” pointing to the need for a regulatory environment that supports expansion and innovation.

He also noted that upgrading facilities is often slowed by administrative processes that limit responsiveness to market changes.

Kangwon Land, the country’s only casino open to local residents, raised similar concerns. Its strategy leadership stressed that public enterprises must undergo extended feasibility studies before approving investment projects, which can delay development for years.

“We need more streamlined administrative procedures,” said Lee Dae-shin, who heads the company’s casino strategy division, adding that faster decision-making would be essential to keep pace with regional competitors.

Another Kangwon Land official, Kim Ho-saeng, argued that Korea’s tourism strategy should include stronger support for integrated resorts, noting that global competition is intensifying even as the government promotes cultural tourism initiatives.

Calls for industry rebranding and integrated resort model

Beyond regulatory reform, participants at the Seoul roundtable emphasized the need to change how casinos are perceived domestically and internationally. The discussion, hosted by The Korea Times, brought together industry executives and academic experts who agreed that Korea’s casino sector requires a broader identity shift toward integrated resort development.

Several speakers argued that casinos should be repositioned as entertainment and tourism hubs rather than gambling-focused venues. The integrated resort model was repeatedly cited as a framework for this transformation.

Kim Jae-kyoung, vice president of The Korea Times, pointed to Singapore as a reference point. He noted that Marina Bay Sands is viewed as a mixed-use destination rather than purely a gaming facility, and said Korea needs a comparable shift in perception. “We urgently need a similar strategic rebranding effort in Korea,” he said.

Academic voices at the meeting reinforced that view. Lee Jae-seok, a professor at Kangwon National University, said the sector must evolve into broader entertainment destinations that encourage longer visitor stays.

Another expert, Lee Min-jae of the Integrated Resort Tourism Research Center, added that while casinos already contribute economically, public perception remains a challenge. He stressed the importance of ensuring that local communities can more directly experience the benefits generated by the industry.

Osaka mega-project raises competitive stakes

The looming Osaka integrated resort sits at the center of the debate. Developed on Yumeshima island in Osaka Bay, the project carries a price tag of nearly $10 billion and ranks among the most expensive casino developments globally.

Once fully operational, it is expected to welcome around 20 million visitors annually. MGM Resorts International has also projected that the casino component alone could generate roughly $6 billion in yearly gaming revenue, potentially placing it among the highest-performing casino properties in Asia.

As reported by Asia Gaming Brief, a Japanese academic, Kang Sung-sook of Tezukayama University, said the project is designed with a broader purpose than gaming alone. She described it as an “innovation hub for international conferences, exhibitions and corporate activities,” underscoring its role as a multi-sector tourism engine rather than a standalone casino venue.

South Korea already operates several integrated resort-style properties, including Paradise City and INSPIRE Entertainment Resort in Incheon, as well as Jeju Dream Tower and Jeju Shinhwa World. However, industry participants warn that these assets may not be sufficient to offset the scale of Japan’s upcoming entry.

Kangwon Land has already outlined a long-term investment plan worth approximately KRW3 trillion ($1.9 billion) aimed at expanding non-gaming facilities and increasing tourism appeal. The strategy includes wellness infrastructure, outdoor developments, and luxury accommodation upgrades, with a target of doubling non-gaming revenue share from 20% to 40%.

GKL has also considered restructuring parts of its Seoul operations, including a proposal earlier this year to acquire one of its casino sites to reduce costs and improve competitiveness, though the plan was ultimately shelved after feasibility concerns.