Zhou Dafu Plans To Invest $2 Billion 600 Million In Korean Casinos

Hong Kong

Chow Tai Fook Enterprises plans to invest $2 billion 600 million in a casino project in Inchon, South Korea.

The project aims to attract Chinese gamblers.

The Inchon municipal government said yesterday that it is expected to start building a hotel this year.

And conference facilities resort.

Zhou Dafu group is controlled by Zheng Yutong (Cheng Yu-tung) family.

According to Forbes, Zheng Yutong's Hotel, shopping center and construction business ranked him fifth in the Asian rich list.

Chow Tai Fook Jewellery, the only listed entity of its investment group, is the largest jewelry company in the world based on market value.

Zhou Dafu group has also considered investing in Vietnam and has reached an agreement to build a gambling resort in Brisbane, Australia.

The construction of the holiday village in Inchon is expected to be divided into two phases, which were completed in 2019 and 2022 respectively.

The plan also needs approval from the Korean government.

Last month, Seoul said it would approve two casino projects targeting foreigners only this year.

South Korea limits its nationals' gambling.

However, as South Korea strives to develop services and reduce its dependence on exports of manufactured goods, the country regards gambling as a way to attract more Chinese tourists.

Over the past 10 years, Chinese tourists have flooded into Korea.

According to statistics from Korea Tourism Organisation, the number of Chinese tourists traveling to Korea increased by 41% to 6 million 100 thousand last year, accounting for 1/3 of all overseas tourists in Korea.

At present, more and more casino operators seeking Asian business are looking beyond Macao.

China's gambling ban has pushed gamblers overseas. The once prosperous Macao gambling industry is mainly driven by mainland Chinese.

Last year, with the fight against corruption in Beijing, China's top VIP gamblers dared not patronize Macao casinos, Macao's gambling industry's annual income fell for the first time.

Analysts expect the downturn to continue, and Standard & amp; Poor's, a rating agency, predicts that gambling revenues in Macao will also fall by 15% to 20% in the first half of 2015.

Casinos for foreigners are operated by two companies -- Paradise and Grand Korea Leisure GKL.

China's anti-corruption actions have also raised concerns among investors of the two companies.

The stock market crashed Monday after media reports that the Chinese government would crack down on gambling marketing of foreign gambling groups.

But analysts say that the geographical layout of South Korea's close proximity to Northeast China means that Paradise and GKL are in a good position to win customers.

From 2008 to 2013, the number of Chinese tourists who had 8 casinos and signed visa free to Chinese tourists increased from 175 thousand to 1 million 800 thousand in Jeju Island.