Grand Korea Leisure Co. Ltd. (GKL), the South Korean operator of foreigner-only casinos under the Seven Luck brand, achieved a significant upswing in its third-quarter performance, reporting a 142.7 percent year-on-year surge in net profit to approximately KRW 14.67 billion (US$10 million). The impressive rebound stemmed from rising casino revenue and steady expense management, underscoring a continuing recovery in South Korea’s gaming tourism market.

According to unaudited financial results submitted to the Korea Exchange and published by GGRAsia, the company’s quarterly revenue increased 16.7 percent year-on-year to KRW 109.38 billion (US$78 million), also marking an 8.4 percent rise from the previous quarter. Despite this, net profit dipped 13.5 percent sequentially due to marginally higher operational costs and promotional spending.

Higher Hold Rates Bolster Casino Performance

During the July–September period, the total casino drop—the amount wagered by players—stood at KRW 2.72 trillion (US$1.9 billion), representing a 1.9 percent decline from the previous year. However, the casino’s hold rate climbed from 10.4 percent to 11.7 percent, helping lift gaming revenue by nearly 11 percent year-on-year to KRW 318.7 billion (US$228 million).

Grand Korea Leisure’s operating profit rose even more sharply, jumping 198.8 percent to KRW 17.3 billion (US$12.4 million), reflecting stronger table-game margins and higher visitor engagement. The company attributed the performance to robust marketing efforts and improved player retention, particularly within its VIP and mass-market segments.

GKL operates three casinos catering exclusively to foreigners—two in Seoul (Dragon City and Gangnam COEX) and one in Busan (Lotte). Together, these venues hosted 788,035 guests in the first nine months of 2025, a 4.9 percent increase from a year earlier.

Mixed Visitor Trends: Japan Rises, China Declines

The company’s visitor data showed contrasting trends among key markets. Travelers from Japan surged 16.1 percent to 277,801 between January and September, signaling growing demand from that market. In contrast, the number of Chinese visitors fell 4.6 percent to 336,883, representing about 43 percent of GKL’s total clientele. Visitors from other regions rose 9.4 percent to 173,351, reflecting broader regional recovery.

A GKL representative told local media that the firm continues to strengthen its VIP marketing strategy, focusing on personalized programs such as non-face-to-face promotions, baccarat tournaments, and cultural dinner events tailored to guests’ preferences. These initiatives are part of the company’s broader push to sustain loyalty among high-value customers, especially in the Greater China segment.

South Korea’s recently introduced visa-free policy for Chinese tour groups, effective since September 29, is also expected to support inbound tourism growth. Government projections suggest the initiative could attract up to one million additional visitors before it concludes next June—a development likely to benefit foreigner-only casinos such as GKL.

Financial Outlook and Market Recovery

For the first nine months of 2025, Grand Korea Leisure reported cumulative net profit of KRW 47.73 billion, marking a 73.1 percent year-on-year rise. Group-wide sales over the same period totaled KRW 320.19 billion, up 10.2 percent, with casino net sales contributing KRW 318.7 billion—an increase of nearly 11 percent compared to 2024.

The company’s cost of sales reached KRW 83.33 billion in the third quarter, up about 6 percent from the prior year. The figure includes marketing and promotional expenses, employee wages, and contributions to South Korea’s tourism development fund.

GKL, a subsidiary of the Korea Tourism Organization—which holds a 51 percent ownership stake—is also partly owned by the National Pension Service, which maintains an 8.44 percent shareholding.

Industry analysts note that GKL’s recent performance illustrates a steady rebound in South Korea’s foreigner-only gaming sector, with the firm benefiting from sustained growth in table play and improved hold efficiency. Despite a modest decline in Chinese visitation, robust Japanese demand and favorable policy measures are expected to support ongoing recovery through 2026.