S. Korean government approves extension of Kangwon Land license
Last updated
Last updated
Kangwon Land, Korea's only casino operator, will extend its gaming license by 20 years until 2045, according to a Cabinet meeting that approved an amendment to the law that allows the operation of Kangwon Land's resort.
The accommodation (pictured) is located in a high-altitude abandoned mine area in Korea, which is a three-hour road from the capital, Seoul.
Local journalist Chosun Biz reported that the operator will pay more taxes to the government in return for the revision of the Special Act on Support for Development of Abandoned Mine Areas.
According to the amendment, Kangwon Land Inc. is supposed to contribute 13 percent of its total gaming revenue to Korea's abandoned mine fund, compared with 25 percent of the pre-tax profit it currently pays.
According to media reports, the government estimates tax revenues of about 208 billion won ($178.3 million) per year from Kangwon Land, which is 43 percent higher than the taxes it currently pays. These tax revenues will amount to about 5 trillion won during the extended license period.
Kangwon Land posted a net profit of nearly 20.9 billion won in the second quarter, compared with a net loss of 40.9 billion won in the previous quarter and a loss of 45.56 billion won a year ago, according to Kangwon Land's unaudited financial results released earlier this month.
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