Although South Korea’s eased visa rules for Chinese tourists won’t be implemented until later in the third quarter, casino stocks are already climbing as investors anticipate a surge in tourism.
South Korea’s gaming sector is already seeing gains ahead of the planned visa-free entry for Chinese tourists. While the policy isn’t set to take effect until later in the third quarter, casino and hospitality stocks are surging in anticipation of a tourism boom.
Chosun Business reports that Lotte Tour Development shares have jumped over 50% since January. Paradise Co. and Grand Korea Leisure have also posted gains during the same period, rising by 28% and 7%, respectively.
As of Saturday, shares of Lotte Tour — operator of foreigner-only casinos such as Jeju Dream Tower — had risen 37.4% over the past month. Recognizing the strong upward trend, the National Pension Service raised its stake in Lotte Tour from 5.01% to 7.05%.
South Korea casinos rely on foreign play
Out of South Korea’s 19 casinos, only one — Kangwon Land in Gangwon Province — is open to local residents. The rest depend entirely on international visitors. The industry faced a setback in December when then-president Yoon Suk Yeol briefly declared martial law.
Although the order was rescinded just six hours later, it still had a chilling effect on tourism. According to Korea Economic Daily, heightened political tensions caused both Chinese and Japanese travelers to avoid the country. Yoon was eventually removed from office in April and arrested on July 10 on charges of inciting rebellion.
Now, foreign tourism is bouncing back. As of May, over 7.1 million international travelers had visited South Korea in 2025 — the highest figure since early 2020. Chinese tourists made up about 28% of that number, making them the largest visitor group.
“If a nationwide visa-free policy for Chinese tourists is introduced, travel interest in Korea is expected to surge,” said Kiwoom Securities analyst Lee Nam-su in an interview with The Korea Times. This could drive “parallel growth in key cities like Jeju, Seoul, and Busan, where many casinos are based.”
Greater cooperation among Asian nations
China launched a reciprocal visa-free policy last November, allowing travelers from South Korea, Norway, Finland, Denmark, and five other nations to enter without a visa until December 31. These bilateral agreements are widely seen as a sign of improving diplomatic ties between China and participating countries.
“Since visa-free access for South Koreans was introduced, relations between the two countries have noticeably warmed,” said Kim Hye-young of DAOL Investment & Securities. “If tourist numbers continue to rise, foreign casino operators with integrated resort projects may see gains”—although Chinese citizens are still prohibited from gambling abroad, even in places where it is legal.
In a broader move toward regional cooperation, South Korea, China, and Japan have agreed to strengthen collaboration on trade and economic policy to tackle “emerging challenges,” according to The Japan Times. The paper noted in May that this trilateral alliance is “more vital than ever” as the ongoing U.S. trade war continues to disrupt the global economic order.
