Kangwon Land Under Gaming Margin Pressure as Revenue Holds

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Kangwon Land Inc reported resilient fourth-quarter revenue but shrinking profitability, underscoring growing gaming margin pressure as it advances a multi-year expansion of its ski-resort casino complex. 

Kangown Land Casino Exterior, as Gaming Margin Pressure Intensifies

Key Takeaways:

  • Kangwon Land reports steady revenue growth in Q4 but profit declines sharply
  • Company invests heavily in casino and resort upgrades despite near-term margin pressures
  • Future revenue hinges on successful execution of renovation and expansion projects

According to GGR Asia, Q4 sales totaled KRW365.45 billion, a 6.0% increase year-on-year, bringing full-year 2025 revenue to about KRW1.48 trillion, up 3.5% from 2024. 

Gaming accounted for most Q4 receipts, with mass-table GGR at KRW161.0 billion, Membership Club GGR at KRW58.0 billion and slot GGR at KRW138.3 billion, while total casino visitors in the quarter reached 617,907, per Inside Asian Gaming. 

The company emphasized a broader GGR uplift helped by higher betting limits introduced in May 2025.

Revenue Resilience Offsets Rising Gaming Margin Pressure

Growth remains shaped by South Korea’s strict regulatory regime. Kangwon Land’s monopoly access to local players is offset by tight limits on capacity and operations, helping explain the operator’s cautious, expansion-led growth strategy.

Net profit attributable to shareholders fell sharply to KRW66.02 billion in Q4, a 41.2% decline year-on-year, as gaming margin pressure intensified, with operating income slid about 30.5% compared with the prior-year quarter. 

Analysts and the company pointed to rising selling, general and administrative expenses and the absence of a one-off gain that had supported results in Q4 2024; company filings also flagged weaker non-operating income across the year. Reuters-style company disclosures show full-year operating profit and pre-tax income were down materially despite revenue growth.

Management is balancing near-term margin pressure with capital plans to sustain long-term growth. 

Capital Investment Ramps Up Despite Near-Term Earnings Drag

The company said it has budgeted KRW126.4 billion for 2026 to fund “casino VIP floor renovation; second casino construction; resort room renovation and improvements; and gaming equipment replacement”. The operator has already shared renderings for a new building including a second casino and pared shares through buybacks while lifting dividends under its Value-up framework. 

Investors should watch execution on renovations and the second-casino build as drivers of future revenue and margin recovery.