Key Moments:
- Kangwon Land Inc obtained a court decision permitting more time for quarterly Abandoned Mine Fund payments.
- The initial quarterly installment of KRW 44.7 billion was scheduled for May 2025, following a legislative amendment.
- Despite the payment restructure, Kangwon Land continues its major expansion, including a new casino building set for early 2028.
Legal Ruling on Payment Schedule
Kangwon Land Inc has achieved a partial courtroom win related to its payments to South Korea’s Abandoned Mine Fund. Judges determined that, although provincial legislation demanding quarterly contributions instead of biannual ones is valid, the company should be allotted a lengthier timeframe for payment to avoid potential default.
Authorities from Gangwon province instituted the amendment in December 2024, shifting payment frequency for Kangwon Land’s Abandoned Mine Fund obligation. The revised law compels the company to remit 13% of its casino revenue through quarterly payments, as stipulated in the Special Act on Assistance to Development of Abandoned Mine Areas.
Potential Impact of Increased Payment Frequency
The first quarterly sum, totaling KRW 44.7 billion (US$32.2 million), was set for May 2025. This figure corresponds to KRW 316.8 billion in gross gaming revenue generated in the first quarter of 2025. Kangwon Land reported that casino sales for the period were unchanged compared to the year prior.
Challenging the schedule, Kangwon Land brought legal action to continue payments on a biannual basis, consistent with previous practice. Under the new rule, payments must be completed within two months of each quarter’s conclusion versus the former annual confirmation process, where biannual sums were finalized in April or May. The court decided to prioritize both legal and practical considerations for the operator.
Community Funding and Regulatory Context
Kangwon Land remains the sole casino available to South Korean nationals and serves an economically sensitive region three hours from Seoul. Its revenues support the restoration and development of areas impacted by historical mining operations. According to its August 2024 sustainability report, Kangwon Land paid KRW 177.34 billion in total to the Abandoned Mine Fund throughout 2024, reflecting the significant scale of the company’s contributions.
Provincial officials aim to secure more regular financial support for abandoned mine development projects by moving to a quarterly remittance model. These changes form part of broader regulatory reforms that impact the nation’s gaming sector.
Growth Strategy Amid Funding Obligations
As regulatory and financial obligations evolve, Kangwon Land is advancing major expansion projects. The resort operator is constructing a second casino building, targeted for debut in early 2028. The multi-faceted development also includes a wellness center, forest trails, pool villas, and new hotel accommodations, all designed to broaden the group’s non-gaming offerings.
The investment comes as Kangwon Land balances substantial capital expenditures with ongoing Abandoned Mine Fund compliance. Korean casino stocks have benefited from favorable tourism forecasts, and the recent court decision provides Kangwon Land with the ability to manage its payment duties while sustaining growth and community commitments.
| Payment Period | Amount Due (KRW) | Payment Basis |
|---|---|---|
| Q1 2025 | 44,700,000,000 | 13% of KRW 316,800,000,000 GGR |
| Total 2024 | 177,340,000,000 | Annual company contribution |
- Author
Daniel Williams
