South Korea Races to Respond to Japan’s MGM Osaka IR
South Korea’s gaming industry is entering a decisive phase as Japan moves closer to launching its first integrated resort the US$9 billion MGM Osaka, slated for a 2030 opening. Industry analysts warn that the scale and appeal of the project could significantly shift regional tourism flows and intensify pressure on Korea’s already fragmented casino sector.
Japan’s Entry Rewrites the Competitive Map
Forecasts suggest that Japanese IRs could tap into South Korea’s outbound tourism in a massive way. Analysts estimate that as many as 7.6 million Koreans may visit Osaka each year once the resort opens, potentially diverting nearly US$1.9 billion in spending that currently fuels domestic gaming and hospitality businesses.
MGM Osaka’s scale three hotels, large-format event spaces spanning 730,000 sq ft and extensive leisure offerings positions it as a landmark destination that may overshadow many existing properties in Northeast Asia.
Industry Leaders Sound the Alarm
Recognizing the threat, the Korea Casino Integrated Resort Association and the Korea Tourism Society held a strategic forum in Osaka. The gathering brought together regulators, operators and academics who collectively agreed: Korea cannot rely on its current policy framework or legacy casino model to compete in the next era of regional gaming.
Kangwon Land, the only property legally permitted to serve Korean nationals, has become a focal point. Acting CEO Choi Cheol-gyu said MGM Osaka presents “a direct and unprecedented challenge,” warning that it could impact not just Kangwon Land but the country’s 17 foreigner-only casinos, which depend heavily on Japanese tourism.
K-HIT Project: Korea’s Attempt to Regain Momentum
In response, Kangwon Land unveiled its long-term transformation blueprint the “K-HIT Project.” Designed to reposition High1 Resort as a world-class destination by 2032, the initiative focuses on wellness tourism, outdoor sports and next-generation leisure formats. The project is also intended to stimulate regional economies still recovering from mining declines.
Choi emphasized that Korea must redefine what an integrated resort means in the modern Asia-Pacific market, shifting away from a purely gaming-centric model and toward global lifestyle experiences.
Fragmented Regulation Seen as a Structural Obstacle
One recurring theme from experts: Korea’s regulatory environment is outdated and too fractured. Licensing oversight is split between the Ministry of Culture, Sports and Tourism for mainland casinos and the National Gambling Control Commission for properties on Jeju Island a model many industry voices say slows investment and complicates long-term planning.
Professor Lee Jae-seok underscored that integrated resorts should be treated as a cornerstone of Korea’s goal to attract 30 million annual foreign visitors, but that success requires clearer, modernized rules paired with strong consumer protections.
Mixed Market Signals Across South Korea
The performance of local operators highlights the industry’s volatile footing:
Grand Korea Leisure, operator of seven foreigner-only casinos, reported a 6.5% year-on-year drop in October revenue, driven by soft table play.
Conversely, Jeju Dream Tower, the country’s largest IR, doubled its casino revenue year-on-year, supported by consistent visitation growth and stronger table performance
These contrasting results reflect how unevenly the sector is positioned ahead of Japan’s IR debut.
A Defining Moment for Korean Tourism
Japan’s entry into the casino sector is forcing South Korea to reassess its strategy at a foundational level. The industry’s path forward hinges on three priorities:
Regulatory reform to remove bottlenecks and encourage investment
Strategic reinvention focused on non-gaming entertainment and tourism
Unified planning that aligns government, operators and regional development goals
Whether South Korea adapts quickly or is overtaken by neighboring competition may define its tourism trajectory for the next decade.
