Kangwon Land Inc, (KRX:035250) posted net profits of KRW47.4 billion (US$42.7 million) for the final quarter of 2014, up nearly 70% from the same quarter for 2013. Kangwon Land Inc operates Kangwon Land Casino & Hotel – the only casino in South Korea that is open to nationals. A special law was passed in 1995 allowing the casino to serve denizens of the country. There are currently 16 other casino properties in South Korea, mostly in upscale hotels, which cater only to foreign visitors.
The company has four business divisions: casino division, hotel division, leisure division, and game and animation division. Gross gaming revenue was up 12.3% to KRW351.8 billion. Gross gaming revenue accounted for 94.2% of the company’s revenue for the quarter. VIP revenues were up 34.1% while revenue from all divisions other than gaming fell slightly.
A new management team was installed in November 2014 with Seung Hui Hahm acting as Chief Executive Officer, Director and Seong Won Kim as the Managing Director. Analysts forecast a 9% growth year on year from VIP players and 18% on slot machines for 2015.
Kangwon Land Inc, casino division operates a single casino. The hotel division operates Kangwon Land Hotel, High1 Hotel, Mountain Condominium and Valley Condominium. The leisure division operates High 1 Ski Course located at Jisang Mountain, Korea, and High 1 CC, a popular public golf course. The game and animation division is engaged in the provision of mobile games and animations.