South Korea casino investor New Silkroad Culturaltainment Ltd has reported a loss attributable to owners of the Company of HK$92 million (US$11.8 million) in 2020, widened from a 2019 loss of HK$80.4 million (US$10.3 million) due to the suspension of its casino operations in Jeju.
New Silkroad operates MegaLuck Casino at Jeju’s KAL Hotel where revenue for the year plummeted by 99.5% to just HK$400,000 (US$51,000) compared with HK$82.6 million (US$10.6 million) in 2019. There was no detail provided on if or when the casino may reopen.
“Operation at the entertainment venue has been suspended temporarily for most of the time in the last year in order to cope with the epidemic prevention measures of the local government,” the company said.
“If the epidemic is not brought under control this year, the business prospect in South Korea is arduous. However, the Group will continue to implement cost control measures in response to the adverse business environment. The management is closely monitoring and will respond cautiously and adjust the business strategy [as appropriate].”
There has also been no progress on a planned integrated resort project in Jeju due to ongoing delays in obtaining financing.
Known as Glorious Hill, the project was first touted in 2016 as “one of the largest integrated resort complexes in South Korea” with numerous five-star hotels, commercial and residential properties, healthcare facilities, a theme park and golf courses.
However, more than two years after gaining regulatory approval to start development, New Silkroad has yet to break ground on the project.