When Yoo Tae-Yeol was named as the new chief executive officer of Grand Korea Leisure Ltd. (GKL) in June 2018, he was viewed by many as a kind of “savior.” A J.P. Morgan Securities report highlighted a 1% decrease in revenue for the company in the first quarter of 2018, prompting a change in leadership at the top of GKL.

While the change may have been needed, it has not produced the desired effect that executives at the company had hoped. According to reports filed with the Korea Exchange, the company saw a 51.8% drop in profits in the final quarter of 2018.

The company reported a total profit in the fourth quarter of $6.1 million. This comes as total revenue generated by the three casinos run by Grand Korea Leisure reported significant losses across the board. Total casino revenue fell by 15.7% from 2017, as revenue generated by machines declined to $51.3 million, a 14.4% decrease from the previous year.

A number of factors appear to be creating the decline, including a decrease in Chinese tourism during 2018. Tensions between South Korea and China increased during the year, and the increase in Japanese tourism was not significant enough to help mitigate the loss of revenue.