Kangwon Land profit falls 30.7% as government weighs revenue use
Kangwon Land Inc, the operator of South Korea’s only casino permitted to serve local residents, disclosed a 30.7 percent year-on-year decline in net income for the full-year 2025, even as annual sales increased. The company said the fall was due to a “decrease in non-operating income year-on-year”. The disclosure was made on Wednesday (21 January) under Korea Exchange rules requiring listed firms to report changes of 30 percent or more in sales, profits, or losses.
The financial information was “based on the company’s (interim) consolidated financial statement” and was released prior to the completion of an external audit, the filing stated.
Earnings and revenue performance
Net income for 2025 totalled KRW316.52 billion (US$215.8 million), compared with KRW456.89 billion (about $311.5 million) in the previous year. Despite the decline in profit, annual sales rose 3.5 percent year-on-year to just under KRW1.48 trillion (about $1.01 billion), up from nearly KRW1.43 trillion (around $975 million) in 2024.
Operating income declined by 17.7 percent year-on-year to KRW235.18 billion (approximately $160.3 million). The company did not provide further breakdowns beyond citing reduced non-operating income as the primary factor behind the fall in net earnings.
Kangwon Land Inc operates the Kangwon Land resort and casino in an upland area outside Seoul. The firm has scheduled the release of its full audited financial results for 2025 on 28 January, according to a separate prior notice disclosure filed with the Korea Exchange.
Disclosure under exchange requirements
The preliminary announcement was made in line with Korea Exchange disclosure provisions, which mandate public reporting when changes of 30 percent or more occur in sales, profits, or losses.
The company clarified that the figures disclosed may be subject to revision following the completion of the external audit process and the formal publication of its annual results later this month.
Potential policy-related financial pressure
The disclosure was filed against the backdrop of ongoing policy discussions between the South Korean government and Kangwon Land Inc. Chosun Biz reported that the Ministry of Trade, Industry and Energy is weighing a plan to use the casino operator’s revenue to help settle debt held by its affiliate, Korea Coal Corp.
The reported proposal would involve setting aside 10 percent of Kangwon Land Inc’s annual revenue over a period of 20 years to settle KRW2.46 trillion ($1.67 billion) in outstanding debt. The ministry responded to the report by stating that the matter was “yet to be decided” and could proceed only “after discussions”.
Kangwon Land Inc’s current casino licence runs until 2045.
Legislative background and community response
The Kangwon Land resort opened in 2000 at a former coal mining site, in accordance with the “Special Act on the Assistance to the Development of Abandoned Mine Areas,” which was enacted in 1995. Under the legislation, Kangwon Land Inc is required to contribute up to 13 percent of its casino revenue to an Abandoned Mine Fund.
Located in Jeongseon County in Gangwon Province, the resort lies in a highland area roughly three hours east of Seoul. Korea Coal Corp said it closed its last remaining mining operation in South Korea at the Samcheok mine in June 2025.
Following public discussion of the potential revenue allocation plan, a Jeongseon-based community group issued a statement opposing the proposal. The group said: “The Special Act contains no provisions allowing for such debt payment”.
The statement further said that, ahead of the planned opening of the MGM Osaka casino resort in neighbouring Japan in 2030, priority should be given to easing casino operating restrictions at the Kangwon Land resort.
Long-term investment programme
Kangwon Land Inc is proceeding with its K-HIT 1.0 Project, a long-term reinvestment programme intended to improve the competitiveness of the Kangwon Land resort. The project has an allocated budget of KRW3.00 trillion (about $2.2 billion) and is scheduled for completion in 2035.
The programme involves a number of redevelopment projects to upgrade facilities and make the resort more attractive. The impact of the 2025 profit drop and any decision on the use of company revenue should become clearer once the audited results are released later this month.
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