The two casino resort projects in Incheon’s Free Economic Zone have recently been postponed due to a government agreement, which could give them two more years to complete their entire plans if they each promise to spend 5 percent more than their already announced capital targets.
This information was confirmed by the Incheon Free Economic Zone Authority (IFEZA) to the GGRA during a recent visit to the Incheon Free Economic Zone Authority, based on the investment conditions agreed upon by the Incheon Free Economic Zone Authority and each investor. According to the Incheon Free Economic Zone Authority, this condition is included in the IFEZA’s establishment decree.
The investor in Incheon is a company called R&F Korea (RFKR) linked to the U.S. Mohigan Gaming and Entertainment, which is developing a foreign-only casino business, Inspire Entertainment Resort (pictured last month), and Guangzhou R&F Properties Limited, which is listed in Hong Kong, and will develop another casino complex, RFKR Resort, which has a foreign-only casino.
Inspire could be offered a “June 2025” deadline for planning completion if both projects exercise the option of committing 5% more capital expenditure each. RFKR resorts could be given a new “March 2024” deadline, an IFEZA official confirmed to GGRAsia.
So far, Inspire has promised 1.8 trillion won ($1.6 billion). RFKR Resort’s promised amount is 800 billion won. The additional 5% investment is calculated based on that amount.
According to IFEZA, the actual amount of foreign direct investment in each scheme is US$500 million. According to authorities, Inspire has invested US$300 million and RFKR has invested US$150 million so far.
In late March, Inspire had pushed back the opening deadline for the first phase by a year from the Ministry of Culture, Sports and Tourism to “first half of 2023.” While it did not commit to spending more, it is understood to be related to delays so far related to the pandemic
RFKR Resorts also received approval from the ministry for a one-year delay from the opening of the first phase in March to “March 2022.” As of March this year, the project had not announced a game operator partner. U.S.-based casino brand Caesars originally participated but withdrew. RFKR asked for a three-year delay in the opening of the first phase. 파워볼실시간
According to a briefing sent by an IFEZA official to GGRAsia, about 12% of Inspire’s plans were executed. The same official said 25% of RFKR Resorts were executed.
Development has slowed due to the COVID-19 pandemic, officials noted, and the two construction projects can only resume once each company has successfully completed project financing.
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