Kangwon Land Inc outlines plan to raise corporate value
Kangwon Land Inc, operator of Kangwon Land – the only casino in South Korea that allows local residents to gamble – has announced a plan aimed at boosting its corporate value. The company revealed on Wednesday that it plans to reach a total shareholder payout ratio of 60 percent by 2026.
This goal will be achieved through a combination of increasing its dividend payout ratio to a minimum of 50 percent and launching a three-year share buy-back programme valued at an aggregate KRW100 billion (US$72.9 million). This initiative includes buy-backs of up to KRW40 billion this year – as announced last week – and a further KRW60 billion in buy-backs during the 2025-2026 period.
Among other objectives, Kangwon Land Inc aims to achieve a price-to-book (PBR) ratio of 1.2 times by 2026.
The full scheme, dubbed the “Value-up Plan”, was disclosed in a filing to the Korea Exchange.
“The company’s stock price was on the rise until 2016 due to the expansion of business facilities and the increase in sales, but has since been on the decline due to complex reasons, such as casino regulations, the Covid-19 pandemic, illicit gambling, customer outflow due to overseas excursions, and lacklustre performance,” stated Kangwon Land Inc in the document.
Kangwon Land Inc acknowledged that its PBR had remained below 1.0 times since 2023, with its price-to-earnings ratio “significantly lower than the market average” and that of its peers.
The company emphasised the need to “enhance” its “investment appeal” by improving profits, developing growth strategies, and increasing returns to shareholders.
A key part of the plan is to increase profitability and secure long-term growth by “boosting operational performance through sales growth, cost optimisation, better gaming experience, and upgraded customer service.”
In April this year, the gaming resort operator announced a KRW2.5-trillion new phase for its Kangwon Land property. It is due to triple by 2032 the size of its casino space, to 49,500 square metres (532,814 sq. feet). The new phase includes expansion of hotel capacity, as well as investment in other non-gaming facilities.
As part of the plan announced on Wednesday, the company is also focusing on establishing a “mid-to-long-term growth strategy for enhancing competitiveness as a global integrated resort”, with further details to be disclosed in due course.
In addition to these initiatives, Kangwon Land Inc aims to broaden its international investor base. To achieve this, the company plans to increase communication with global institutional investors, participate in investment relations conferences hosted by leading securities firms, and expand its English-language disclosures.
