Last week, South Korean casino stocks reached a one-year low, despite a surge in tourist arrivals and impressive gains in the KOSPI, the nation's key stock index. The KOSPI, which includes more than 800 common stocks listed on the Korea Exchange, has seen significant growth recently due to strong investment from both domestic and international sources.
This year, domestic investors have poured $68.4 billion into KOSPI shares, even amidst reports of foreign investors pulling back. However, casino stocks have not benefited from this upward trend.
After an early rally that peaked mid-February, the prices of South Korean casino shares have consistently declined for several months. The KOSPI's strong performance contrasts sharply with the downturn experienced by casino operators like Grand Korea Leisure, which manages the Seven Luck casinos. Shares in Grand Korea Leisure ended just above 10,300 KRW ($6.80) on July 6, shortly after hitting a record low.
Rival firms are faring no better. Kangwon Land, the only casino in South Korea that allows local residents to gamble, has seen its stock prices fall to their lowest point since mid-2024. Paradise, another major casino operator, has seen its share price plummet more than 45% from its yearly high. Even Lotte Tour Development, which has had a record-setting year, faced a decline of over 9% in stock value this month, contrasting sharply with the almost 8% increase in the KOSPI.
Despite this decrease in casino stocks, South Korea has welcomed more than 10 million international tourists in the first half of 2026, with over half of these visitors arriving from mainland China, according to the Ministry of Culture, Sports and Tourism. Monthly spending by tourists has also soared above 2 trillion won for the first time in recorded history.
Yet, the increased visitor numbers have not translated into casino revenues. In June alone, Grand Korea Leisure reported a 14% decrease in casino sales, while Paradise faced a nearly 40% drop in table game sales.
Looking ahead, analysts remain optimistic. Lee Hye-in, an analyst at Samsung Securities, suggested that casino share prices may rebound in the latter half of 2026, particularly with further increases in tourist numbers expected during the upcoming East Asian holidays. Lee noted that many Chinese tourists view Korea as a preferable travel destination due to worsening diplomatic relations with Japan.
While Macau has experienced a decline in demand, Lee emphasized that South Korea is on a path of structural growth in its tourism sector. He also predicted that domestic companies will outperform their Macau counterparts as the year progresses.
