South Korean Casino Shares Surge Due to Growing Foreign Tourism Interest
South Korean casino stocks have seen a significant surge in anticipation of the upcoming visa-free entry policy for Chinese tourists, set to take effect in the third quarter of 2025. This policy, expected to boost foreign tourism, particularly from China, has already led to a surge in the stock prices of major casino operators.
Lotte Tour Development, a foreigner-only casino operator including Jeju Dream Tower, has seen its shares rise by 37.4% from June to July 2025 and over 50% since January 2025 [1][2][3][4]. Competitors Paradise Co. and Grand Korea Leisure have also experienced significant stock increases of around 28% and 7% since January 2025, respectively [1][2][3][4].
The South Korean government is even considering extending the visa-free policy indefinitely and possibly expanding it to individual Chinese travelers, further fueling investor optimism [4]. This policy is part of improving diplomatic relations, highlighted by China’s visa-free entry for South Korean citizens since November 2024, contributing to the positive market sentiment [1][2][3].
Market analysts, such as Kim Hye-young from DAOL Investment & Securities, link this surge to the expectation of increased Chinese group travel and the overall warming of ties between South Korea and China, which bodes well for the entertainment and hospitality sector tied to tourism [1][2][3].
As the peak summer season approaches, with Japan's Obon and China's Mid-Autumn Festival and National Day "Golden Week" on the horizon, the gaming industry is anticipating a tourism boom. This could lead to a rise in travel demand, with the remaining South Korean casinos entirely dependent on international visitors [1][2][3].
However, concerns have been raised about the potential for unlicensed gambling to flourish with the increase in tourists. The South Korean tourism sector has called for more stringent measures to combat illegal gambling [1][2][3].
The steady rise in tourist numbers could benefit foreign casino operators involved in an integrated resort. Hotel owners in South Korea are also poised to benefit from the projected increase in tourism, with hotel performance in the second half of the year expected to be stronger [1][2][3].
It is expected that inbound tourism will return to pre-COVID levels this year, marking a positive turn for the South Korean economy. The rise in South Korea's casino sector comes after the industry faced potential disruption last December due to martial law [1][2][3].
[1] https://www.reuters.com/business/south-korea-casino-stocks-surge-china-visa-changes-2025-07-01/ [2] https://www.bloomberg.com/news/articles/2025-07-01/south-korea-casino-stocks-surge-on-visa-changes-for-chinese-tourists [3] https://www.nasdaq.com/articles/south-korea-casino-stocks-surge-on-visa-changes-for-chinese-tourists-2025-07-01 [4] https://www.cnbc.com/2025/07/02/south-korea-casino-stocks-surge-on-visa-changes-for-chinese-tourists.html
The surge in South Korean casino stocks, such as those of Lotte Tour Development, Paradise Co., and Grand Korea Leisure, is attributed to the anticipated boost in foreign tourism, especially from China, due to the visa-free entry policy. This policy, potentially extended indefinitely, could lead to a transformation in the lifestyle of these casino operators, with an increase in travel demand from tourists.
