Kangwon Land appoints interim CEO following Lee Sam-Geol’s resignation

Choi Cheol-Gyu has been officially nominated as vice president and interim CEO by Kangwon Land Inc., the operator of South Korea’s only legal gambling casino for locals.

Up until a new CEO is selected, Choi, who was formerly the Presidential Secretariat’s Secretary for National Integration, will assume CEO duties. On December 5, 2023, he started working there after Lee Sam-Geol’s departure.

Due to the recent controversies, Lee, who had been CEO since March 2021, resigned.

Kangwon Land was fined KRW 3.23 billion (US$2.38 million) by the government’s financial watchdog for 182 money laundering crimes, the majority of which were due diligence mistakes and some of which involved data erasure or alteration.

Even with the support of Kangwon Land management, the state-owned company received a “D” on its annual review due to allegations of bribery, workplace bullying, sexual harassment, and excessive spending.

The company’s financial results, which showed a decline in revenue and profit in the quarter ending in September 2023, have also fallen short of projections. Following COVID-19, investment bank JP Morgan saw a slower-than-anticipated rebound for Kangwon Land, with demand plateauing for three consecutive quarters. The rise in illegal and grey-market gambling, such as cash play at “Hold’em” bars and online casinos, was blamed by analysts for this downturn.

Original story by: IAG