Bain Capital acquires control of Mohegan's Korean resort

Private equity firm Bain Capital has acquired control of Mohegan Inspire Entertainment Resort on Yeongjong Island, the largest integrated resort in South Korea, after Mohegan's South Korean arm defaulted on around $275 million in loans. 

Bain Capital on Monday announced that it had secured a controlling stake in MGE Korea, the South Korean subsidiary of US-based Mohegan Gaming & Entertainment (MGE), which owns 100% of the luxury resort complex on the island in Incheon.

It did not provide details about its ownership stake.

The deal came one year after the resort, near Incheon International Airport on Yeongjong Island, opened with fanfare in January of last year. MGE has invested $1.6 billion in the massive integrated resort, aiming to establish it as the largest in North Asia.

According to industry sources, MGE Korea has failed to repay $275 million in term loans in South Korea it borrowed from multiple financial institutions in November 2021.

Mohegan Inspire is also the largest foreigner-exclusive casino in South Korea. It spans 461,661 square meters, equivalent to 64 soccer fields. The resort includes three five-star hotels with a total of 1,275 rooms, a 15,000-seat arena, a banquet and convention hall accommodating 4,000 people, as well as an indoor water park.

Since January last year, Mohegan Inspire recorded sales of 219 billion won ($152 million) and a net loss of 265.4 billion won by the end of September.

“Although the management rights have been transferred to Bain Capital, there will be no immediate changes in the executive team," said an Mohegan Inspire official.

Write to Jae-Kwang Ahn at ahnjk@hankyung.com

Yeonhee Kim edited this article.