Expectations Rise for Casino Stocks as Beneficiaries of Swift COVID-19 Response

Paradise, GKL, and Others Show Recent Uptrend
Leading Asian Casino Countries All Struggle with COVID-19
Korea's Excellent Response Causes Slowdown... Increased Potential for Foreign VIP Influx

[Asia Economy Reporter Minwoo Lee] The stock prices of casino companies, which were hit hard by the COVID-19 pandemic, are fluctuating. This is due to growing expectations that South Korea, leading the world in COVID-19 quarantine measures, will be able to reopen casinos the fastest in Asia.

According to the Korea Exchange on the 17th, as of 9:45 a.m., the stock price of casino operator Paradise rose 4.38% from the previous day to 15,500 KRW. It has been steadily rising, with increases of 4.89% on the 14th and 6.45% on the 16th. Grand Korea Leisure (GKL), which operates the foreigner-only casino 'Seven Luck,' is also on the rise. At the same time, its stock traded at 15,900 KRW, up 3.25% from the previous day. It has consistently risen by about 3-5% recently. This contrasts with the period from February to mid-last month when stock prices fell due to a sharp decline in foreign tourists caused by COVID-19.

This is analyzed as reflecting expectations that these stocks could benefit from the recovery after the COVID-19 situation. In particular, while South Korea’s COVID-19 quarantine measures are the best in the world, leading Asian casino markets are experiencing worsening COVID-19 conditions, leading to forecasts that South Korea could absorb this demand.

In the case of Macau, the number one in the Asian casino market, issuing Chinese visas remains difficult. On the 18th of last month, foreign entry was banned to prevent offshore inflows, and on the 25th of the same month, Chinese nationals with overseas travel experience were also banned from entering. This month, operation of the Hong Kong-Zhuhai-Macau Bridge was suspended. The Philippines and Singapore, which follow Macau as leading markets, are also experiencing worsening COVID-19 situations. The Philippines has surpassed 5,000 cumulative confirmed cases and 300 deaths. Since the 22nd of last month, all foreign entries have been banned, and the lockdown order on Luzon Island, where the capital Manila is located, has been extended until the end of this month. Singapore’s situation has also rapidly deteriorated recently. Although it was considered a model country for quarantine, mass infections spread after schools reopened last month.

Domestically, COVID-19 is showing signs of slowing down. This appears to be due to the effectiveness of the government’s high-intensity social distancing and quarantine policies. According to the Central Disease Control Headquarters on this day, the number of daily new confirmed cases, which was around 100 at the end of last month, dropped sharply to the 20s from the 13th. In Daejeon, Chungbuk, Jeonbuk, Jeonnam, and Gyeongnam, no new cases were reported for a week starting from the 10th.

Researcher Kihoon Lee of Hana Financial Investment explained, "Although South Korea also enforces a two-week self-quarantine for foreign entrants, considering its quarantine capabilities, Chinese entry may be permitted faster than in the Philippines and Singapore. The Asian casino market is worth 58 trillion KRW annually, but South Korea’s market size is only 1.6 trillion KRW. If an issue arises where Chinese VIPs can come only to Korea in the short term, the situation could change significantly."

This content was produced with the assistance of AI translation services.