Tourism experts explore lessons to reclaim Korea's competitiveness in integrated resort industry

Distinguished guests and speakers of The Korea Times Global Business Club pose during its opening ceremony in Seoul, Friday. From left are Gangneung-Wonju University professor Lee Jae-seok, Korea Culture and Tourism Institute research fellow Jeong Kwang-min, Korean Institute of Criminology and Justice senior researcher Park Jun-hwi, Tezukayama University professor Kang Sung-sook, National Gambling Control Commission Secretary General Lee Jin-sik, Korea Times President-Publisher Oh Young-jin, Tourism Sciences Society of Korea President Seo Won-suk, Vice Culture Minister Kim Dae-hyun, Ambassador of Kazakhstan to Korea Nurgali Arystanov, Grand Korea Leisure's Management Division Director Kim Hyun-ki, Dong-eui University professor Yoon Tae-hwan and Mayfield CEO Kim Young-moon. Korea Times photo by Choi Won-suk

By Lee Hae-rin

• Published Oct 20, 2025 12:00 PM KST

Japan’s Osaka IR scrutinized for inspiration in making Korean properties globally competitive

Tourism experts and industry leaders highlighted the fast-evolving integrated resort (IR) sector and discussed the reasons behind Korea’s intgrated resort lag behind global competitors such as Japan’s Osaka at The Korea Times Global Business Club, Friday.

Under the title "Strategies for securing sustainable competitive advantage in Korea's Integrated Resort (IR) industry," the event aimed to promote informed dialogue and present actionable insights, following increasing concerns about Korea’s declining competitiveness in the high-value tourism and gaming industries.

Jointly organized with the Tourism Sciences Society of Korea (KOSOK), the event comes after a series of Korea Times roundatables and forums about the future of Korea's integrated resort industry.

Osaka's integrated resort: model of transformation

Kang Sung-sook, professor at Tezukayama University, gave a comprehensive analysis on Japan’s decisive integrated resort strategy, focusing on the Osaka project as a cornerstone for national rejuvenation. She explained that the Japanese government’s long-term plan, launched in the early 2000s, used tourism as a vehicle to counter demographic decline and stimulate regional economies.

Japan began building the foundation for integrated resort development as early as in the 2000s, laying out a long-term plan of a collaboration between government, local communities and international investors, the professor explained.

That vision culminated in the MGM Osaka IR project, now under construction on Yumeshima Island, scheduled for completion in 2030. According to Osaka Prefecture and MGM Resorts International, the $8.1 billion project will feature hotels totaling 2,500 rooms, large exhibition halls and entertainment facilities.

Upon its completion in 2030, the complex is expected to attract about 20 million visitors annually, generate annual gaming revenue of nearly $3.4 billion and create more than 20,000 jobs.

She pointed out that Osaka's success was made possible through careful regulatory planning, transparent governance and regional cooperation rather than short-term incentives.

While many Korean experts see the Osaka project as a potential threat, some Japanese experts believe it could also create new opportunities for Korea, according to Kang.

"Many Japanese have never experienced casino gaming before, and once restrictions on local entry are lifted, some of these new customers may be inclined to visit casinos abroad — particularly in Korea," she said. Kang suggested that this dynamic could "turn competition into mutual benefit," with Korea attracting Japanese visitors seeking new leisure experiences, ultimately fostering a win-win relationship between the two neighboring markets.

Korea’s gaps and missed opportunities

In contrast, Dong-eui University professor Yoon Tae-hwan, identified structural and policy-level weaknesses in Korea's integrated resort strategy.

"Korea adopted the IR concept at the legislative level but failed to synchronize government ministries, local governments, and private sector interests around a unified vision," Yoon said. He contrasted Korea's piecemeal casino licensing, limited VIP marketing strategies and lack of innovation with Japan’s deliberate and well-coordinated approach and market expansion.

He noted that oversight is divided among the Ministry of Culture, Sports and Tourism, the National Gambling Control Commission and multiple agencies under separate special laws, resulting in overlapping regulations and blind spots. "The lack of specialized supervisory personnel has weakened on-site enforcement," Yoon said.

He proposed establishing an independent, unified control tower — similar to Singapore’s model — and training professional regulators to enhance both efficiency and accountability. "By doing so, Korea can offer clear, predictable standards to global investors and strengthen its international credibility," he said.

He also pointed out that while Korea’s integrated resorts experienced early growth in foreign investor numbers, stagnation soon followed due to recurring issues like inconsistent government support, slow infrastructure upgrades and constrained investment. He cited statistics showing that Korea’s integrated resorts — despite their strategic locations — failed to meet global standards for entertainment diversity, luxury retail and MICE offerings.

"Japan's IR operators invested in comprehensive destination management, not just gambling, but Korea often overlooked tourism integration," Yoon observed. He recommended Korea enhance cross-sector dialogue, prioritize sustainable hospitality and incentivize global partnerships to rejuvenate its integrated resort business model.