Grand Korea Leisure, operator of the Seven Luck foreigner-only casino brand in South Korea, reported a decline in first-quarter net profit despite recording higher casino sales during the period.
The company posted net profit of nearly KRW15.09 billion ($10.0 million) for the three months ended 31 March, down 6.3 per cent from the same period last year, according to unaudited financial results filed with the Korea Exchange on Tuesday.
Operating income for the quarter fell 10.0 per cent year-on-year to nearly KRW18.15 billion ($$13.3 million). Group-wide sales, however, edged up 0.7 per cent to KRW110.65 billion ($81 million).
Casino sales rise in first quarter
Casino sales at GKL reached KRW138.16 billion ($101.2 million) during the January to March period, representing a 6.0 per cent increase compared with a year earlier.
The growth in casino sales came as the company continued to attract overseas visitors to its foreigner-only gaming venues under the Seven Luck brand.
However, the company also reported a sharp rise in casino loss accounts. The amount climbed 61.2 per cent year-on-year to KRW21.63 billion ($15.8 million) during the quarter.
The increase in loss accounts weighed on overall profitability despite stronger gaming revenue.
Three Seven Luck Casinos across South Korea
GKL operates three foreigner-only casinos in South Korea under its Seven Luck brand.
Two of the casinos are located in the capital city of Seoul, while the third property is based in the southern port city of Busan.
The company focuses mainly on serving international visitors, as South Korean nationals are generally restricted from entering most casinos in the country.
South Korea’s casino market includes several venues aimed exclusively at foreign tourists, with operators relying heavily on visitor arrivals from neighbouring Asian markets.
Tourism links remain key for GKL
GKL is a subsidiary of the Korea Tourism Organization, which is affiliated with South Korea’s Ministry of Culture, Sports and Tourism.
The company’s operations are closely tied to the country’s tourism industry, particularly inbound travel demand from regional markets such as China and Japan.
Foreign visitor recovery across Asia has supported casino traffic in South Korea over the past year, although operators continue to face challenges linked to changing travel patterns and operating costs.
Profit pressure continues
While casino sales improved during the quarter, the decline in net profit and operating income suggests that cost pressures and higher loss accounts affected GKL’s earnings performance.
The company did not provide additional commentary in the filing regarding outlook for the remainder of the year.
GKL remains one of South Korea’s major casino operators focused on international customers. Its Seven Luck properties compete with other foreigner-only gaming venues in the country, as operators seek to capture rising regional tourism flows and gaming demand.
The latest quarterly figures highlight that gaming revenue growth alone was not enough to offset pressure on earnings during the opening quarter of 2026.
GKL sets 2030 casino sales target in value-up plan
Recently, GKL set a casino sales target of KRW 503.8 billion ($334.3 million) by 2030. The filing sets out a multi-year strategy built around overseas market development, digital marketing investment and sustained dividend payouts. It is the operator’s clearest public statement yet of its long-term commercial ambitions within South Korea’s tightly regulated foreigner-only casino sector.
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