Incheon lures US casino

By Kim Rahn

Incheon International Airport Corp. (IIAC) and Mohegan Sun, a U.S. casino operator, have agreed to set up an integrated resort near the airport.

IIAC CEO Park Wan-su and Mohegan Sun Chairman Kevin Brown signed a memorandum of understanding (MOU) in Incheon, Tuesday, for the $5 billion project.

The MOU comes as the Ministry of Culture, Sports and Tourism is planning to select operators for at least two integrated resorts in the country by the end of this year. An integrated resort caters for both business people and tourists with casinos, hotels, shopping malls, convention halls, gaming venues, restaurants and theme parks.

Mohegan Sun is a casino operator established by the Native American Mohegan Tribe. Its flagship property, Mohegan Sun resort in Connecticut, is one of the largest tourist destinations in the eastern U.S. with $1.2 billion in annual sales in 2014.

“We believe the planned integrated resort will change Yeongjong Island into a center of tourism in Northeast Asia,” Park said during a signing ceremony at Grand Hyatt Incheon. “We’ll give full support to the company so that the ministry can select it as the resort operator.”

Brown said the resort will offer not just a casino but also other non-gaming experiences.

“This venture will combine the best of Korean, Western and Native American culture to attract international tourists,” Brown said, adding that the project will reshape tourism in Korea.

“This great project will bring economic vitality, jobs to the region, more tourism dollars and recognition that Incheon is a hub of Northeast Asia for international travelers wishing to enter this gateway and experience this integrated resort,” he added.

On the 3.2 square kilometers of land in the International Business Center (IBC) zone near the airport, Mohegan Sun plans to build a foreigner-only casino, hotels providing 1,000 rooms, an arena that can be used for concerts or sporting events, and other leisure facilities by 2020, costing $1.6 billion.

By 2040, it will develop more facilities with an additional investment of $3.4 billion.

With its knowhow in operating the Mohegan Sun Arena where world-renowned musicians’ concerts and sports events are held, the American company plans to build a high-tech 20,000-seat venue at the IBC and offer K-pop concerts and other hallyu programs.

Earlier this year, the ministry decided to select operators for two or more integrated resorts. It will receive investors’ development proposals by June, review them and approve sites by August, and make a final decision in December.

Mohegan Sun plans to set up a Korea unit soon and submit its development scheme to the ministry by June for approval.