Mohegan gains Korea’s 1st foreign casino license in 19 years

Mohegan Gaming & Entertainment (MGE) will open a foreigners-only casino at its resort complex in Incheon, South Korea in the first quarter after the Korean government on Wednesday granted the US casino operator its first permission in 19 years to operate a new foreigners-only casino in the country.

The country’s last license to operate a casino exclusively catering to foreigners was granted to Grand Korea Leisure Co. in 2005.

There are currently 17 foreigners-only casinos across Korea.

Korea’s Ministry of Culture, Sports and Tourism has approved Mohegan’s foreigners-only casino operation under the country’s Special Act on Designation and Management of Free Economic Zones, making the US entertainment company the first foreign investor to benefit from the law enforced in 2021.

But the ministry’s nod comes with the condition that Mohegan should continue to invest in other entertainment attractions in Korea.

LUXURY RESORT COST $2.8 BILLION

The new casino will open inside Mohegan’s luxury resort complex dubbed Inspire Entertainment Resort, or Inspire Resort, on Yeongjong Island, near Korea’s main gateway Incheon International Airport, in the first quarter of this year.

Over the past seven years, the US casino operator invested $2.8 billion in building the complex, which will house a casino, three five-star hotel towers with 1,275 rooms, a 15,000-seat concert and sports arena, banquet halls, restaurants and a shopping mall.

For the construction, the US company raised 1.8 trillion won ($1.3 billion) in 2021, including 1 trillion won through senior and subordinated loans from three Korean bookrunners, NH Investment & Securities Co., KB Investment & Securities Co. and Hana Financial Investment Co., and other anonymous underwriters.

It already started operating its hotels and the arena called Inspire Arena late last year.

Hanwha Hotels & Resorts Co. operates the hotels under a consignment management deal with Mohegan.

After the opening of the casino along with a shopping mall by the end of March, Mohegan will roll out an outdoor entertainment park, an international food court, an indoor kids’ play park and an aqua park in the second quarter in phases.

With unprecedented attractions like its immersive entertainment street enveloped by a 150-meter LED display, the company hopes to make the resort one of Korea’s prime tourist destinations that can be visited by about 350,000 people every year.

The Korean government pins high hopes on the new luxury resort to attract more foreign visitors to Korea and create new jobs in the city.

Inspire Resort already hired 2,333 employees late last year and plans to recruit an additional 2,400 workers by next month.

Once the resort is complete, it will be a formidable rival to the neighboring resort complex Paradise City, only 10 to 15 minutes away by car.

While Inspire Resort could eat away at the revenue of Paradise City, which offers similar hospitality and entertainment attractions such as luxury hotels, a casino and retail outlets, the two attractions are expected to turn Incheon into an international resort town through fair competition.

Write to Sun A Lee at suna@hankyung.com

Sookyung Seo edited this article.