South Korea’s Ministry of Culture, Sports and Tourism is investigating Grand Korea Leisure Co Ltd for allegedly inflating 2025 casino-visit figures by 35.4%.
GKL visitor probe focuses on 395,348 non-member visits allegedly misreported as legitimate entries. The Ministry is checking facts after a complaint was filed regarding Seven Luck casino counting methods. GKL denies the allegations, calling them unconfirmed facts.
- The Allegation: 35.4% Inflated Visits
- Audit Process and Ministry Action
- GKL’s Denial and Recent Updates
Investigators are currently examining claims that Grand Korea Leisure Co Ltd (GKL) exaggerated the number of non-member customers visiting its three casinos in 2025. The South Korea Ministry of Culture, Sports and Tourism launched the probe after receiving internal allegations and data from the company. This scrutiny marks a significant escalation in regulatory oversight of the nation’s foreigner-only casino sector. Reports by the Yonhap News Agency indicate that the ministry is checking the facts of the matter following a formal complaint. The investigation centers on how visitor numbers were recorded and reported to authorities.
The core of the dispute involves a specific breakdown of visitor counts. Approximately two-thirds, or 721,817 visits, of the nearly 1.12 million declared last year were recorded via membership cards. However, the remaining balance—395,348 visits, representing 35.4 percent—involved non-members entering with only their passports. These passport-only visits are recorded separately by casino staff. The allegation suggests that some of these separate entries were incorrectly aggregated or misclassified to inflate the total visitor count.
The Allegation: 35.4% Inflated Visits
A complaint specifically regarding the way Seven Luck casino visitor numbers were counted was filed with South Korea’s Board of Audit and Inspection. This body conducted an onsite investigation in June before referring the matter to the Ministry of Culture, Sports and Tourism. The referral triggered the current ministerial inquiry into GKL’s reporting practices. The allegation implies a systematic issue rather than a one-off error. If confirmed, such inflation would undermine the integrity of national gaming statistics and regulatory compliance.
The Ministry has since requested relevant information from Grand Korea Leisure to verify the claims. Officials are cross-referencing internal data with the reported figures. This process is critical to determining whether the company violated reporting standards. According to regional analysts, accurate visitor data is essential for monitoring market health and preventing fraud.
Audit Process and Ministry Action
The Board of Audit and Inspection plays a pivotal role in this process. It acts as an independent body to investigate potential financial irregularities and misreporting. Following their June onsite investigation, the board determined that the matter warranted further review by the ministry. The Ministry of Culture, Sports and Tourism is now checking the facts based on the board’s findings. This escalation demonstrates the seriousness with which the government treats claims of data manipulation.
Grand Korea Leisure operates three foreigner-only casinos under the Seven Luck brand. These properties are located at Gangnam COEX in Seoul, Seoul Dragon City in the capital, and Busan Lotte in the southern port city of Busan. The allegation covers visits to all three locations last year. The scale of the potential discrepancy—over 395,000 visits—highlights the magnitude of the issue. Regulatory bodies are closely monitoring how the company responds to these requests for information.
GKL’s Denial and Recent Updates
In response to the allegations, Grand Korea Leisure issued a statement denying the claims. The company stated that reports of “fictitious counting” and “inflating visitor numbers” were “not confirmed facts.” GKL maintains that their reporting methods comply with all applicable regulations. The company is cooperating with the Ministry’s investigation to provide the requested data. This denial aims to protect the company’s reputation while the facts are being verified.
Separately, in August, Grand Korea Leisure flagged it would pay an interim dividend. This announcement followed a reported increase in second-quarter net income. The company also renewed its lease for the Gangnam casino. These positive financial updates stand in contrast to the current regulatory scrutiny. The outcome of the investigation will likely impact investor confidence and future operational strategies for the operator.
Frequently Asked Questions
Why is the Ministry investigating GKL?
The Ministry is investigating claims that GKL inflated 2025 casino-visit figures by 35.4%. A complaint was filed regarding how Seven Luck casino visitor numbers were counted, prompting a Board of Audit and Inspection referral.
What specific numbers are under scrutiny?
The probe focuses on 395,348 non-member visits (35.4% of total). These were passport-only entries recorded separately, allegedly misreported to inflate the total visitor count for 2025.
Which properties are involved?
Grand Korea Leisure operates three foreigner-only casinos: Seven Luck at Gangnam COEX, Seoul Dragon City, and Busan Lotte. The allegations cover visitor counts across all three locations in 2025.
What is GKL’s response to the allegations?
GKL denies the claims, stating that allegations of “fictitious counting” and “inflating visitor numbers” are “not confirmed facts.” The company is cooperating with the Ministry’s investigation.
How does this relate to recent financial news?
In August, GKL announced an interim dividend and a renewed lease for its Gangnam casino following a rise in Q2 net income. This financial news contrasts with the current regulatory challenges facing the operator.
This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.
