GKL under Investigation
28th May, 2008
South Korea – The Grand Korea Leisure or GKL (also known as Grand Korea Corporation), a subsidiary of the government-run KTO or the Korea Tourism Organization is facing investigation due to alleged irregularities in the awarding of casino licenses in Korea.
Apparently, the Grand Korea Corporation awarded the Hanmoo Convention Corporation the contract to set up or establish gambling facilities in certain venues when, according to allegations, the said corporation is unqualified to do so and has supposedly received lower marks than the other bidders for the said project. In response to the allegations, the Board of Audit and Inspection (BAI for short) has requested that the authorities investigate the GKL and particularly the Hanmoo Convention Corporation contract.
The investigation went to a head on Tuesday, May 27, 2008, when two out of three Seven Luck Casinos that are run and operated by GKL were raided by the authorities. Apart from the two Seven Luck Casinos, the GKL headquarters and the home of GKL Chairman, Park Jung-sam, were also raided. At the raids, the authorities seized important documents and computer files – all of them financial in nature – doubtless in the hope that such documents will be able to shed light on the dubious selection of a casino contractor.
GKL runs and operates three Seven Luck brand casinos. The two of the casinos that were involved in the raid are both located in Seoul – one at the Gangnam Area and one in the Millennium Seoul Hilton. The Gangnam Casino – labeled as the “Decent Korean Style” casino of the Seven Luck Brand – can be found near famed five-star hotels in Seoul such as the Oakwood Premiere Hotel. The Millennium Seoul Hilton Casino, on the other hand (labeled as the “Elegant Las Vegas Style” casino under the Seven Luck banner), is located near famous tourist destinations like the Namsan Mountain.
Only one of the three Seven Luck Casinos was spared from the raids. This is the one located at the Lotte Hotel in Busan – the casino that GKL brands as the “Environment Friendly Comfort” casino. All three Seven Luck casinos are meant for tourists and foreigners, and are obviously part of the government’s efforts to boost tourism in the country.
The three Seven Luck Casinos are great moneymakers for the GKL and thus, the Korean Government, seeing as GKL is a government organization subsidiary. All three casinos were opened in 2006. In the two years they have been open, the Seven Luck Casinos have recorded around 454 billion in takings.
By Chris M
