Kangwon Land shares jump as South Korean tourism rebounds
Shares of Kangwon Land Inc, South Korea’s only casino operator permitted to serve residents, are showing signs of resilience as the country’s tourism recovery begins to regain momentum.
The company, listed on the Korean Stock Exchange (KRX), is one of the major names in the country’s gaming sector. Its High1 Resort is the sole property where Korean nationals are permitted to gamble, providing a stable domestic revenue stream amid greater market challenges.
The company’s shares have traded in the range of KRW 18,200 to 18,700 (about $13.8 to $14.2) in recent sessions. This increase signals investor assurance, due to consistent revenues and a competitive dividend yield. However, the stock still trickles sometimes due to macroeconomic conditions.
In recent days, concerns over the slowdown in South Korean tourism have eased. By 2023, South Korea’s tourism sector recovered to around 90 percent of pre-pandemic levels. Earlier forecasts expected slower growth in the year 2026, due to rising inflation and higher living costs. But recent data shows a more stable recovery.
2M arrivals in March
In March 2026 alone, the country registered over 2.05 million foreign visitors, driven largely by arrivals from China, Japan, Taiwan and the United States. The surge has stretched capacity across airlines and hotels.
Despite this improvement, Kangwon Land remains heavily reliant on gaming, which accounts for more than 60 percent of its earnings. The company has expanded into hotels, ski facilities, and other resort services, but these areas only partly protect it from changes in casino business.
The company’s financial results are mixed. In 2025, revenue grew by 3.5 percent to about KRW 1.48 trillion ($1.12 billion), showing steady sales growth. However, net profit dropped 30.7 percent to around KRW 316 billion ($240 million), as margins came under pressure. The fourth quarter was especially weak, with profit down 41.2 percent from the previous year because of higher operating costs and no one-time gains like before.
Valuations remain relatively reasonable, trading at about 10 to 11 times earnings. Analysts estimate its fair value between KRW 19,800 and 21,000 (about $15.1 to $16.0), which means there could be some upside if tourism stays strong.
Regulatory pressure from Seoul grows
Regulation continues to cast a shadow over the outlook. Kangwon Land’s monopoly, created under a 1990s law, is reviewed from time to time, and the debate in Seoul over its licence continues to go on. Some policymakers favour opening up access for more operators, while others want tighter controls to address social concerns. Either move carries risk — more licences could eat into its dominance, while stricter rules could hit footfall.
Online gaming is also causing new challenges for the land-based casino operations. Destinations such as Jeju Island are now competing to drag more users. Whereas, travel patterns from regions like China and Japan still remain a key swing factor.
For overseas investors, the stock still offers a window into Asia’s tourism sector, although the lack of a US-listed vehicle and currency swings in the Korean won add friction. For now, the gradual uptick in shares suggests sentiment is improving, but conviction remains measured.
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