Kangwon Land casino allowed to live another 20 years

Kangwon Land Casino will pay a higher tax deduction for the license renewal. Officials decided to make up for the lost last year due to the coronavirus.

Kangwon Land casino lobbying interests drew sympathy from the South Korean government. Government officials decided to amend the law guaranteeing support for certain industrial areas whose businesses have closed. The casino acts as a tool for improving the well-being of local citizens. His license will be renewed for twenty years.

True, the government proposal must pass through the sieve of the relevant parliamentary committee. There, the servants of the people agree, but they proposed to adjust the 25% taxation of the establishment, increasing the “levy” on income to one third.

Local journalists covering the situation learned that the calculations of parliamentarians are simple: the annual casino taxes at the new rate will reach $ 171 million, and the entire licensing period will bring the country $ 4.3 billion.

Why bother the casino so much? - Newspapers ask a question and answer: the introduction of new tax rules is probably a direct response to the collapse of tax revenues in 2020, when the financial flow from Kangwon Land turned into a trickle due to the coronavirus. The casino suffered a $ 250 million loss. Now it is necessary to make up for lost time.

The revised law will also contain another feature - it will oblige the casino to transfer funds to support the territory, regardless of the results of economic activity. This approach will ensure the stability of financial assistance to the needy area.

Located 150 kilometers from Seoul, Kangwon Land is the only institution open to South Korean residents. The casino was launched in 1989, after the closure of local mines. The latter became unnecessary - the country began to develop gas and oil energy resources. By the way, 51 percent of KL shares are owned by the state.