Grand Korea Leisure, a foreigner-only casino operator in South Korea, reported a loss of KRW64.33bn ($57.6m) for the full year of 2020, a substantial decline from a profit of KRW72.4bn recorded in 2019.
Casino sales declined 63% year-on-year to KRW202.5bn. The company explained, “Sales and profits declined due to business closures and restrictions on entry to major customers due to the impact of the novel coronavirus infection.”
Q4 2020 recorded KRW32.7bn in losses, compared to KRW18.31bn in profit reported for the last three months in 2019. Q4 sales were down by 89% to KRW14.94bn, compared to KRW130.85bn for the same period the previous year. Q4 sales dropped by 57% from KRW34.76bn reported for Q3.
GKL had to close its casinos several times during the year to help with pandemic efforts. The latest closures took place when the company had to close its two Seoul casinos on 24 November and a Busan casino on 1 December. The venues will remain closed until at least 15 February.
GKL is a subsidiary of the Korea Tourism Organization and is associated with the Ministry of Culture, Sports and Tourism. The company reportedly paid KRW17bn to South Korea’s Tourism Promotion and Development fund, a 64% decline in yearly contribution.