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South Korea is making its play for a bigger chunk of the Asian gaming market and a surprising number of investors want in. As I reported in Inside Asian Gaming, South Korea’s government has invited applications for two gaming licenses to build integrated resorts with casinos that would only be open to foreign players. Korea’s leading casino operator, Paradise, with and a partnership led by Caesars Entertainment are already developing IRs outside Seoul, near the country’s gateway airport, and Genting Group plans to build an IR on Jeju Island, where Chinese visitors enjoy visa free access, off the country’s south coast.

A knowledgeable source expected about ten groups to submit proposals for the new licenses, which require an IR project investment of at least 1 trillion won (US$890 million). However, local media has reported that 34 groups had applied to the Ministry of Culture, Sports and Tourism for the licenses by the June 30 deadline. Applicants include big gaming names from Macau and globally, though only a handful have publicly revealed their interest.

Manila’s Bloomberry Resorts wants to build an integrated resort in South Korea on this site, linking two islands and two strategies, one in Korea and one for the Philippine. (Photo credit: Solaire Korea Resort/Bloomberry Resorts)

Confirmed applicants include Mohegan Sun, the casino brand of the Native American Mohegan Tribal Gaming Authority that operates IRs in the US states of Connecticut and Pennsylvania. Mohegan Sun is proposing a $1.6 billion IR – $5 billion at full build out – in cooperation with Incheon International Airport Corporation, operator of Korea’s gateway airport that handled 45 million passengers last year. MGTA president Bobby Soper believes the project can build tourism and passenger traffic while creating synergy with the Paradise IR at the other end of the airport. The two IRs might be connected via an airport monorail system.

The MGTA resort, dubbed Inspire, would be adjacent to the airport’s second terminal, now under development, and feature Korea’s first private air terminal, an indoor-outdoor amusement park, plus Native American and Korean cultural and arts attractions, including a local cosmetics and beauty center with a Fountain of Youth theme. “Based on components, we think it can create a compelling package,” Soper says. “Mohegan Sun is all about the wow factor. We’ll be incorporating a lot of wow factor.”

Bloomberry Resorts’ $1.4 billion IR proposal relies on Mother Nature for its wow factor. The operator of Manila’s Solaire Resort and Casino, controlled by billionaire Enrique Razon Jr, purchased land on Muui and Silmi islands, off Yeongjong, site of Incheon’s airport. Twice daily, the 500 foot (150 meter) wide, 26 foot deep channel between the islands empties, making it possible for tourists to marvel at the phenomenon, walk between the islands for about two hours at low tide and for Muui villagers to capture marine creatures stranded in the exposed sand and rocks. Muui’s many seafood stalls feature fresh, hand caught octopus and other seafood treats. Further island attractions including beaches, vistas and hiking that attract 750,000 visitors during the summer months, even though access is only by ferry. A bridge linking Muui to Yeongjong is scheduled for completion in 2018.

To supplement the natural attractions, Bloomberry’s IR would include an all-weather waterpark, 1,000 hotel rooms, an amphitheater staging recreations of historic Korean naval battles and star power with a Tommy Hilfiger/Karl Lagerfeld center to foster new talents in fashion, art, music and entertainment plus weddings by Vera Wang. Solaire Resort Korea chairman and CEO David Shim says the IR, with a projected total investment of $3.4 billion, targets the 20 million top tier Korean consumers that live within an hour of the site as well as 100 million within two hours flying time. Koreans won’t be able to play in the casino unless they hold a foreign passport, but the resort will showcase the Solaire brand, encouraging Koreans to visit mothership in Manila. Korea is the largest source foreign visitors for the Philippines.

Enthusiasm for casino development in South Korea reflects several key trends in East Asia. Chinese tourist arrivals to South Korea grew 42% last year to 6.1 million, according to government statistics, and total arrivals were up 8% to 16.1 million. The Korean wave of popular culture sweeping Asia, from soap operas to K-Pop boy and girl singing groups, has helped drive tourism. Korea’s status as an advanced consumer society also makes it attractive to Chinese travelers for products from electronic gadgets to cosmetic surgery. Chinese arrivals are expected to grow to 10 million by 2020.