Recovery hopes in sight for South Korea’s casino sector: NH Investment

February 23, 2022 South Korea Emerging Markets

There’s light at the end of the tunnel for South Korea’s casino industry, although the recovery in the Chinese VIP market is likely to be slower-than-expected, NH Investment & Securities analyst Hazell Lee said.

Writing in Business Korea, Lee wrote that the portion of junket sales in South Korea’s foreigner-only casinos is in the low single digit range and therefore the direct earnings impact of the imposition of that sector should be minimal.

However, “there is a possibility of a delay in the recovery of sales due to the contraction in overseas gaming demand among general VIPs,” she wrote.