Kangwon Land, the only casino in South Korea at which locals are allowed to gamble, has reported 2,444 cases of suspected money laundering transactions since 2018, according to data submitted by the casino operator to the Financial Intelligence Unit (FIU).
The cases included 733 in 2018 and 893 in 2019 before falling to 538 cases in 2020 and 280 through June of 2021. There were also 1,711 reports of high-value cash transactions totalling KRW213.2 billion.
According to the FIU, the reason for the decline in suspected money laundering transactions over the past two years was due to Kangwon Land’s casino being closed for lengthy periods as a result of the COVID-19 pandemic.
The main reasons for reports being submitted were suspicion of excessive gaming relative to income as a result of falsifying game history, suspicion of transactions in the name of another person and suspicion over the average bet amount compared to drop amount.
Kangwon Land was recently granted a 20-year extension to its casino license until 2045 in exchange for an adjustment to the tax rate, from the current 25% on profit before tax (PBT) to a direct 13% tax on GGR, effectively increasing the rate charged on PBT to around 31% on a like-for-like basis.
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