Analysts indicate that South Korean casino stocks are poised for a strong second half of 2026, buoyed by a forecasted 25% increase in Chinese tourist arrivals. This expected surge is reviving interest in an otherwise stagnant domestic casino sector. According to EBN, experts are optimistic that as Chinese tourism rebounds, so will investor confidence in these gaming establishments.
Paradise, which manages casinos and resorts in Incheon and Busan, reported a modest 4% increase in consolidated revenue during the first quarter of 2026. However, Shinhan Investment & Securities anticipates an impressive over 8% growth in revenue for the second quarter, projecting earnings will reach approximately $213 million and operating profits to exceed $29 million, reflecting an 18% rise.
Shinhan analysts believe that Paradise is ideally positioned to capitalize on the influx of Chinese tourists, primarily due to its locations in both Incheon and Busan, cities that are served by South Korea’s largest and fourth-largest airports. Furthermore, Busan hosts the nation’s busiest passenger seaport, making it a critical hub for international visitors.
According to financial experts, the correlation is clear: as foreign visitor counts rise, so too does attendance at casinos. This trend has sparked “growing optimism” regarding the performance of major gaming companies in the region.
Other operators appear to be on a similar path. Lotte Tour Development, which oversees the Jeju Dream Tower integrated resort, achieved record revenues in the first quarter, with a year-on-year growth exceeding 28%. Projections suggest that its revenues could see an additional quarter-on-quarter increase of 25%, reaching around $131 million due to heightened international flights to Jeju, increased casino activity, and better hotel occupancy rates. Analysts from Samsung Securities noted that Lotte Tour Development enjoys "excellent profitability per visitor," emphasizing its competitive advantage in holding rates compared to its rivals.
Grand Korea Leisure, which runs the Seven Luck casino chain, is also expected to benefit from the increase in visitors. Analysts foresee a steady recovery in its performance driven by a rise in both Chinese VIP customers and ordinary tourists at its foreign-passport-holder-only casinos in the metropolitan centers of Seoul and Busan.
Ji In-hae, a research analyst at Shinhan, mentioned that focusing on Chinese tourists continues to be a sensible strategy and highlighted that Busan is likely to be the primary beneficiary of recent visa waiver incentives.
Despite these optimistic forecasts, South Korean casino stocks have struggled at the end of the trading week. Major operators' stocks have underperformed compared to the KOSPI index for much of the year. In 2026, the Korea Exchange’s all-share index has seen substantial growth, primarily fueled by a wave of investments in local chip manufacturers.
Political tensions also loom as opposition figures criticize President Lee Jae-myung for potentially reckless behavior in ramping up KOSPI investments. The leader of South Korea’s second-largest political faction accused Lee of converting the stock exchange into a “KOSPI casino” through the approval of controversial leveraged exchange-traded funds.
