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Kangwon Land Casino

Kangwon Land Casino will be extended until 2045. The integration of Gwanghae Mining Industrial Complex will also begin in earnest.
Chosun Biz Sejong: Reporter Park Jung-yeop

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Input 2021.03.02 11:21 Modification 2021.03.02 13:10
The statute of limitations of the law, which is the basis of the business of Kangwon Land, a domestic casino, will increase by 2045. The National Assembly and the government have accepted complaints from abandoned mines to increase the period of benefit of Kangwon Land casino profits while promoting integration with the Korea Mineral Resources Corporation, the largest shareholder of Kangwon Land, in order to save the Korea Mineral Resources Corporation in the bankruptcy crisis.

The government held a cabinet meeting on the 2nd and voted on the revision of the Special Act on the Development of Waste Mine Area and the enactment of the Korea Mining Corporation Act. The special law on waste was enacted in 1996 to promote the economy of abandoned mines, which were underdeveloped due to the specification of the coal industry. As a special law, it contains the operating grounds of Kangwon Land, a domestic casino that is not authorized by the current Tourism Promotion Act. Part of the profits of Kangwon Land, including casinos, are to be supported by the abandoned mine fund for the city and county areas of seven abandoned mines.

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Slot machine equipment installed at Kangwon Land casino sales site on January 12. / Yonhap News
The Korea Mineral Resources Corporation Act integrates the Korea Mineral Resources Corporation and the Korea Mineral Resources Corporation to save the Korea Mineral Resources Corporation, which is in full capital erosion due to insolvency in overseas resource development investment. As a result, the Integrated Corporation will take charge of the entire cycle mining support system that leads to technology development, exploration, development and production, and mining prevention. In addition, an overseas asset management committee will be established to sell overseas assets in order to sell overseas assets, and the direct investment function of overseas resource development of Gwanghae Mining Corporation will disappear. The Korea Gwanghae Mining Corporation Act will be implemented six months after the promulgation, but the Industrial Complex Establishment Committee will be formed immediately after the promulgation of the law and will begin preparations for the establishment of the corporation. The chairperson of the establishment committee shall be headed by the Vice Minister of Industry, and the members shall be comprised of the head of both agencies and private experts.

At the Cabinet meeting, the revision bill of the Special Law on Waste was also handled along with the Gwanghae Mining Corporation Act in accordance with the demands of local governments in the abandoned mines nationwide. The Gwanghae Management Corporation is the largest shareholder of Kangwon Land and is the main business of improving the abandoned mine environment. In the abandoned mine area, the Gwanghae Management Corporation insisted that if it is integrated with the Korea Mineral Resources Corporation, which is a bad company, the abandoned mine area could be damaged.

As a result, the revised Lung Special Act extended the statute of limitations of the Lung Special Act, which was scheduled to end in 2025, until 2045, and also increased the amount of waste mine funds received from Kangwon Land.

The special law was a temporary

legislation until 2005, but the prescription was extended twice in 2015 and 2025, and the prescription was increased by 2045 again. The standard of the abandoned mine fund was the Presidential Decree at the time of its enactment, but it has since expanded to 20% of casino profits and 25% of casino and subsidiary facility profits. The revision was revised to pay 13% of total casino sales to the abandoned mine fund. It is a measure that enables stable abandoned mine funds even if the business is sluggish due to the impact of Corona 19 measures.

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As a result, the amount of the abandoned mine fund will increase from 122.2 billion won to 180 billion won based on 2019 sales. Last year, Kangwon Land suffered a huge loss due to the impact of Corona 19 and only 53 days of operation. Sales fell nearly 70 percent from 1.52 trillion won in 2019 to 478.6 billion won last year, and profits (pre-tax profit) for the same period turned from 488.9 billion won to 404.5 billion won last year.As a result, there was no amount of waste mine fund payment this year.