South Korea's Casino Stocks Post Huge Gains
The promise of a Chinese tourist influx is already yielding benefits for South Korea's gaming sector as casino and hospitality companies experience record highs in their stocks.
LISTEN TO THIS ARTICLE:In March 2025, the South Korean government announced plans to offer visa-free travel to Chinese visitors starting in the third quarter, aiming to revitalize the tourism sector amid weak domestic demand.
The move, which has been anticipated before the announcement, has sparked a rally in tourism and gaming stocks. For instance, shares of Lotte Tour Development have jumped more than 50% year-to-date, with Paradise and Grand Korea Leisure posting gains of 28% and 7%, respectively.
Lotte Tour, which operates foreigner-only casinos such as Jeju Dream Tower, also saw its stock rose 37.4% in the last month.
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Dependance on Foreign Visitors
The reason why the prospect of a fresh tourist influx sends waves of optimism through South Korea's gaming industry is not far-fetched; the casinos in the jurisdiction rely on foreign patronage to stay afloat and drive revenue. South Korea has 19 casinos, all catering exclusively to international visitors, except Kangwon Land in Gangwon Province, which admits local gamblers.
This is why the brief martial law declaration by former President Yoon Suk Yeol in December cast a shadow over South Korea's tourism sector, with Chinese and Japanese tourists staying away amid heightened tensions.
However, months since then, tourism has been thriving in South Korea. From January to May 2025, the country recorded over 7.21 million foreign visitors, a 14.7% increase from the same period last year.
China accounts for 28.1% of visitors with 2.05 million arrivals, followed closely by Japan with 1.33 million visitors. Other key source countries include Taiwan, the United States, and the Philippines.
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