This document discusses the impacts of casinos in Korea. It notes that the first casino opened in 1962 to attract foreign tourists, and today there are 14 casinos. The government legalized domestic gambling in 2004 to revitalize declining mining towns. Casinos have provided some economic benefits through job creation, tax revenue, and increased sales for local businesses. However, casinos can also lead to problem gambling and negative social impacts like addiction, crime and bankruptcy. The government and casinos operate programs to prevent and treat gambling addiction, fund problem gambling treatment from casino profits, and regulate the industry to manage its economic and social impacts.

1. Impacts of
Casino’s in Korea

2. Introduction
• The first casino opened in Korea in
1962, as a way to attract inbound
tourist from overseas.
• Today, a total of fourteen casinos are
in operation in Korea.

3. Introduction
• The government first legalized a casino for
local people in Chongsun, Kangwon province
after the residents repeatedly urged officials
to legalize gaming for domestic customers in
order to revitalize this dilapidated mining
town.

4. • The geographical location of this area is a
rundown mining area that suffered a
devastating economic situation after coal
was replaced by oil and gas.
• In year 2004, the government announced
it would legalize 3 additional casinos for
foreigners: two casinos in Seoul and one
casino in Busan. They will be run by a
subsidy of Korea National Tourism
Organization.

5. Positive
impacts

6. • casino opened, a number of
impacts have been detected.
• As example of economic benefits,
local business, lodging facilities,
restaurants, taxis and gas stations
increased their sales volume by
50% to 200 (Kangwon Province
2000)

7. • More than 1.8 million people
visited the casino, and casino
revenues amounted to 695 million
dollars in 2004 (Kangwon Land
Casino, 2005)
• Casino hired 44% of its employees
and purchased 80% of its
inventory from the community.

8. • Moreover as of December 2004., the
casino hired about 3,115 employees of
which 44% were recruited from the
communities(Kangwon Land Casino
2005).
• The rate of foreign exchange earnings for
the casino sector was found to be 94%.

9. Rate of foreign exchange earnings.
Number sector Rate % Rank
Export
1 Textiles/apparel/leather 64.3 8
2 TV’s 60.0 9
3 Semiconductors 39.3 10
4 Passenger cars 79.5 6
Tourism
5 Shopping (retail trade) 93.9 1
6 Restaurants 90.5 5
7 Hotels 92.2 3
8 Transportation and communication 78.2 7
9 Culture and recreation services 91.7 4
10 Casinos 93.7 2

10. • By the end of fiscal year 2002, Kangwon
Land Casino earned approximately
US$220 million in revenues and paid over
US$100 million in taxes to the central
government and taxes and donations to
the local government (Kangwon Land
casino 2003)

11. Negative social Impacts
• Some negative social impacts such as
gambling addiction, bankruptcy, and crime.
• Gaming has been traditionally perceived as an
immoral activity.
• Numerous traditional gambling activities have
jeopardized the quality of life of individuals
and families in the past.
• Pathological gamblers could lose all their
assets and also their lives.

12. • A typical gambling problem starts with an
increasing amount of debt and may
escalate to the committing of crimes by
gambling addicted individuals.
• In extreme cases, some commit suicide
when they discover that they cannot
control themselves

13. • Since Korean government
deregulated the overseas travel policy
in 1989, Korean outbound travel to
casinos in foreign countries has led to
numerous unfortunate instances of
financial difficulties, involving money
laundering, paying extremely high
interest rates on debts and suicide.

14. Minimizing the negative impacts
• Problems can be prevented through proactive
educational programs and treatment in a clinical
environment.
• Proper regulation of gambling can make the
industry healthy and ensure that economic impact
of recreational gaming activities remains beneficial.

15. • The government and businesses should
support an effective compulsive gambling
treatment program.
• A portion of the casino operation’s profits
could be used for this purpose.
• Kangwon Land Casino spends a great deal
on the Korea Gambling Problem center
(KGPC).

16. THE OBJECTIVES OF KGPC
DEVELOP AND PROVIDE PREVENTION AND
TREATMENT PROGRAMS
LINK WITH A CLINICAL HELP LINE
OFFER EDUCATION PROGRAMS FOR YOUTH AND LOCAL
RESIDENTS
INCREASE PUBLIC AWARENESS OF POTENTIAL PROBLEM
BEHAVIOUR

17. • KPGC provides a telephone hotline
for immediate contact for
pathological gamblers, potential
gamblers, family members of
problem gamblers and other
interested person.

18. • The hotline telephone number is
posted in the casino, on its Web site
and in brochures.
• Once a person contacts the KGPC, a
trained professional helps screen the
severity of the caller’s problem and
refers the caller to visit the KGPC.

19. • The person will join the treatment
program and may be contacted by a
clinic.
• The hotline also provides additional
information ad resources for help, such
as Gamblers Anonymous (GA or
“Dandobak” in Korean) or the Korean
Institute of Brief Family Therapy (BFT).

20. • The KGPC works closely with GA and
provides callers with information
regarding GA group meetings, locations
and times.
• The BFT provides consulting services for
families who have problems associated
with marriage, parenthood and
addictions to gambling, drugs or alcohol.

21. • When an individual’s gambling
problem seems to be serious, the
gambler may likely be referred to the
KGPC’s intensive outpatient
programs.
• In the outpatient program, individuals
meet with a professional counsellor.

22. • Individual interactions between
pathological gamblers and the
counsellor may require additional
support from government, clinical and
religious group.
• Individuals may also seek help from
KGPC in solving financial, legal, marital
or employment issues caused by their
gambling problems.