Japanese pachinko operator Sega Sammy Holdings Incorporated has reportedly announced that it intends to inaugurate an expansion of its Paradise City integrated casino resort in South Korea containing a spa and a club by the end of next March.

According to a report from Asia Gaming Brief, the 10.6-acre Paradise City, which is operated in partnership with Seoul-listed Paradise Company Limited, opened in April of 2017 as the first true integrated casino resort in South Korea while the latest revelation came as part of a financial presentation from Sega Sammy Holdings Incorporated.

Although Paradise City has been open for just over a year, its business has reportedly suffered as a result of Beijing limiting the number of tour groups that are permitted to visit South Korea. This purportedly came after Seoul’s 2016 decision to deploy the United States-supplied Terminal High Altitude Area Defense (THAAD) anti-missile system in response to North Korea, which is a neighbor and long-time ally of China, further developing its own offensive missile capabilities.

Sega Sammy Holdings Incorporated reportedly also used the recent presentation to declare that regulatory changes had led to its net 2017 segment sales dropping by some 28.7% to around $964 million although it expects to see a second-half uptick in sales of its No. 6-type pachislot machines. Asia Gaming Brief moreover detailed that the Tokyo-based giant saw machine sales last year drop by over 60% year-on-year to only 85,000 units although it managed to shift about 1.5% more pachinko units at 140,000.