South Korean President Lee Jae-myung has ignited a fierce debate regarding the ownership of the nation’s gambling industry, suggesting that the lucrative profits generated by casinos should belong to the state rather than private entities.
During a policy briefing for the 2026 fiscal year held this week, the President criticized the current licensing system, describing the approval of private-sector casino operators as a “significant favor” that requires re-evaluation.
The President’s comments had an immediate ripple effect on the Korea Exchange. Shares of Paradise Co Ltd and Lotte Tour Development Co Ltd, two of the country’s primary private operators for foreigner-only casinos, dropped sharply in Wednesday trading following the remarks.
A Push for Public Sector Dominance
President Lee’s critique centered on the immense profitability of the gaming sector. Addressing the Ministry of Culture, Sports and Tourism, he questioned the logic of allowing private companies to monopolize such high-yield businesses.
“Why are these licenses granted to specific individuals or companies?” Lee asked during the briefing. He argued that because the industry generates substantial revenue, the rights to operate should ideally reside within the public sector to benefit the national treasury, rather than being viewed as special concessions for private interests.
This sentiment appeared to bolster investor confidence in state-linked entities. While private stocks fell, shares of Grand Korea Leisure (GKL), a state-controlled operator under the Korea Tourism Organization, saw a slight uptick. GKL CEO Yoon Doo-hyun confirmed during the session that despite a challenging year, the operator maintains a stable annual profit forecast of approximately KRW 50 billion ($37 million).
Kangwon Land’s Expansion Bid Stalls
The briefing also dealt a blow to Kangwon Land, the only casino authorized to accept bets from South Korean nationals. Interim CEO Choi Cheol-gyu presented the operator’s “K-HIT 1.0” reform plan, pleading for deregulation to survive amid growing Asian competition.
Choi requested an increase in betting limits from KRW 300,000 to KRW 1 million and the removal of the 180-day annual entry cap for local citizens.
However, President Lee Jae-myung dismissed the immediate approval of such measures, labeling the expansion strategy as “risky.” He warned that gambling is often seen as a symptom of societal decline and instructed officials to prioritize data-driven assessments of social harm over economic expansion.
While acknowledging the sector’s role in funding leisure and sports, the President made it clear that strict oversight would remain the priority for 2026.
