The political heat in South Korea during the first quarter of the year proved to be too hot to handle as far as casino operator Kangwon Land Inc. is concerned.
Kangwon Land, the only one of South Korea’s 17 casinos that had been legally allowed to cater to local residents, saw its net income tumble by 9.1 percent in the first three months of the year due to an internal political crisis that scared tourists from flying in the country.
In a filing before the Korean Stock Exchange, Kangwon Land announced that its first quarter income dropped to KRW129.79 billion (US$116.0 million) compared to KRW142.81 billion (US$127.85 million) in the prior-year period.
The casino’s total sales for January to March 31, 2017 was down 3.1 percent to KRW422.97 billion (US$378.67 million) compared to the previous year while its quarterly operating income also dropped 8.7 percent to KRW162.41 billion (US$ 145.4 million) from KRW177.88 billion (US$159.25 million) a year earlier.