South Korean business and tourism experts recently held a conference to discuss how to learn from Japan's Integrated Resort (IR) model to enhance the competitiveness of their own casino industry. The MGM Resort in Osaka, Japan, serves as a typical case, demonstrating how IR can promote tourism development by integrating government, investors, and community resources. The project, with an investment of $8.2 billion, is expected to attract 20 million visitors annually after its opening in 2030, generating $3.4 billion in gambling revenue and creating 20,000 jobs. Experts pointed out that although South Korea has adopted the IR concept at the legislative level, there are issues such as insufficient departmental coordination, regulatory overlap, and a lack of innovation, necessitating the establishment of a unified regulatory body and clear standards to attract global investors. There may be competition between Japanese and Korean projects, but there are also opportunities for cross-national cooperation.
Japanese IR Model and the Osaka Case
Japan adopts the Integrated Resort (IR) model, closely combining government, investors, and local communities to support sustainable development. The MGM Resort in Osaka, as Japan's first IR project, is currently being developed on Yumeshima Island in Osaka Bay, with an investment of $8.2 billion.
The project is scheduled to open in 2030, expected to attract 20 million visitors annually, generate $3.4 billion in gambling revenue, create 20,000 jobs, and promote Osaka as a world-class tourist destination.
Current Status and Challenges of IR in South Korea
South Korea has adopted the IR concept at the legislative level, but has failed to coordinate government departments, local governments, and private sector interests around a unified vision. Professor Yoon Tae-hwan from Dongyi University pointed out issues in South Korea such as dispersed licensing, insufficient VIP marketing, and a lack of innovation.
Compared to Japan's well-coordinated approach, South Korea has prominent issues with regulatory overlap, with multiple departments such as the Ministry of Culture, Sports and Tourism and the National Gambling Control Commission overseeing the industry, leading to inefficiency.
Regulatory System Comparison and Improvement Suggestions
South Korea's regulatory system suffers from a lack of professional regulators and weak on-site enforcement. Experts suggest establishing an independent "Regulatory Tower" institution and setting clear and predictable standards to enhance international credibility and attract global investors.
The Japanese model shows the importance of unified regulation and clear standards for industry development, and South Korea needs systematic regulatory reform.
Diversity Gap in Facilities and Services
Japanese IR projects like the MGM Osaka include hotels, retail, dining, entertainment, and convention facilities, investing in comprehensive destination management rather than just gambling. South Korean resorts currently lack such diversified facilities and service integration.
Japanese operators focus on integrating all elements of tourism, while South Korea often overlooks the same level of tourism business synergy.
Talent and Labor Strategy
The MGM Osaka project is expected to help offset Japan's declining population by bringing in foreign workers. The American Chamber of Commerce in Japan has called the project an "international recruitment catalyst," increasing domestic labor supply.
This talent strategy provides a reference for South Korea, which faces similar demographic challenges.
Market Competition and Customer Flow
The MGM Osaka and subsequent Japanese IR projects will compete with markets such as South Korea. Since South Korea has only one domestic casino resort (Gangwon Land), Korean tourists may choose to travel to Japan, with only a 90-minute flight from Seoul to Osaka.
Research predicts that the Osaka project could attract 7.6 million Korean tourists annually after its opening, with a spending of about $1.9 billion.
Opportunities for Cooperation and Competition Transformation
Despite the competition, Professor Kang Seong-sook from Tezukayama University sees opportunities for cross-national cooperation. Many new Japanese customers may prefer to visit foreign casinos, especially those in South Korea, potentially transforming competition into a mutually beneficial relationship.
Japan and South Korea have potential for cooperation in customer exchange and market complementarity.
Policy Coordination and Implementation Gap
The key to the success of the Japanese IR lies in the close coordination between the government, investors, and the community, while South Korea lacks a unified coordination mechanism among various departments. This policy implementation gap directly affects project effectiveness and market competitiveness.
South Korea needs to establish a more efficient policy coordination mechanism to ensure the effective implementation of the IR concept.
Economic Impact and Social Benefits
The Japanese IR model shows that large resort projects can significantly promote tourism development, increase employment, and drive related industries. South Korea can also achieve similar economic and social benefits by improving the IR development model.
The key is to learn from Japanese experiences and formulate effective development strategies tailored to the national context.
Future Development and Improvement Directions
South Korea needs to improve its regulatory system, strengthen departmental coordination, enhance the diversity of facilities, and develop policies to attract international investors. While learning from Japanese experiences, it is necessary to adapt to the local market needs and characteristics.
Long-term development needs to balance competition and cooperation to achieve a win-win situation in the regional market.
