[Kangwon Land at 26, Light and Shadow②] Hiring Scandals and COVID-19 Scars… Has Customer Trust Been Restored?

The past 26 years of Kangwon Land, established to revitalize the economy and create jobs in abandoned mining regions, have been a time of alternating growth and crisis.

 

Its monopoly as the only casino in Korea accessible to locals provided a stable foundation, but it could not shield the company from hiring scandals, pandemics, or declining profitability.

 

Hiring corruption undermined the founding mission of providing fair employment, while COVID-19 exposed a structure where the local economy falters whenever the casino stops. Now, having weathered these crises, it is time to reflect on how much customer trust and service levels have truly changed.

 

Kangwon Land's recovery cannot be measured by revenue and visitor numbers alone. We must also examine whether customers are treated fairly, if inconveniences are reduced, and if they are protected from the risks of excessive gambling.

 

◆ Hiring Scandals Left Scars on the Hope of Employment

 

Kangwon Land jobs were a new opportunity for residents and local youth who lost their livelihoods due to mine closures. A stable job was the foundation for them to continue living without leaving their hometowns.

 

However, the massive hiring corruption scandal that occurred between 2012 and 2013 left a deep scar on these expectations. The fact that solicitation and favoritism influenced hiring caused a deep sense of deprivation among applicants who believed in fair competition.

 

Beyond the legal responsibility for individual cases, the company still bears a broader corporate responsibility. The mission of creating local jobs is not fulfilled merely by increasing headcount. It must be predicated on criteria and procedures that anyone can accept.

 

While hiring fairness and customer service may seem separate, they meet at the question of whether a company is trustworthy. Internally, HR principles must be upheld, and in the field, regulations must be applied consistently to customers.

 

Public enterprises that demand strict compliance from their customers must apply the same level of fairness and accountability to themselves to earn trust.

 

◆ The Vulnerability of the Local Economy Exposed When the Casino Stopped

 

COVID-19 dealt another blow to Kangwon Land and the former mining regions.

 

Due to prolonged closures and operating restrictions, consolidated revenue in 2020 dropped to approximately 478.6 billion KRW, with operating losses reaching 431.6 billion KRW. In 2021, the company recorded another operating loss of approximately 52.7 billion KRW.

 

Casino visitors plummeted from about 2.9 million in 2019 to about 600,000 in 2020. As visitor numbers dropped, surrounding businesses such as lodging, restaurants, and taxis could not avoid the impact.

 

This demonstrated Kangwon Land's contribution to the local economy while simultaneously revealing the risks of high dependency. The structure was such that the suspension of the company's operations led to a contraction of consumption across the entire region.

 

Crisis response must also include communication with customers. The company needs a system to deliver important information—such as closures, reopenings, and changes in entry methods—quickly and clearly, and to reduce confusion in the reservation cancellation and refund process.

 

Preparations must also be made for how to mitigate the shock to the company, customers, partners, and local merchants if a pandemic or disaster occurs again.

 

◆ Revenue Recovery vs. Customer Satisfaction

 

Although operations have recovered since COVID-19, the burden on management continues.

 

In 2025, consolidated revenue was 1.4767 trillion KRW, an increase of about 3.5% from the previous year, but operating profit decreased by about 17.7% to 235.3 billion KRW. Revenue growth did not immediately lead to improved profitability.

 

The deficits of non-casino facilities such as hotels, condos, ski resorts, and water worlds are also a challenge. Even considering their role in fostering local tourism, it is necessary to review operational efficiency and product competitiveness.

 

However, cost-cutting should not lead to a reduction in service at customer touchpoints. Information staff, cleanliness, rest areas, and facility maintenance are the basic elements by which customers evaluate a company.

 

For loss-making facilities, the reasons for low patronage must be examined first. It is necessary to identify and improve upon what is hindering visits—be it price, accessibility, operating hours, programs, or facility management.

 

It is difficult to find a solution by either maintaining facilities without solving the reasons why customers don't visit, or conversely, by cutting costs without considering the public interest function.

 

◆ From Entry to Rest… Looking at the Customer’s Day

 

Kangwon Land is regulated on the number of entry days, operating hours, betting limits, and the number of gaming facilities. While these are devices to prevent excessive gambling, complaints are raised on-site regarding entry competition, waiting times, and a lack of seats for popular games.

 

For customers who have traveled a long distance, the uncertainty of entry and game access is a significant burden. Elderly customers or first-time visitors, in particular, may have difficulty understanding application methods and usage procedures.

 

The company should not stop at merely notifying customers of regulations but should verify if they actually understand them. It is necessary to provide easy-to-understand information on entry sequences and expected wait times, and to provide sufficient explanation and adjustment periods when procedures change.

 

Gaming facility operations must also reflect demand. If customers flock to certain games while others are underutilized, the appropriateness of the machine types, layout, and operational methods should be reviewed.

 

The same applies to rest areas, chairs, restrooms, and food and beverage conditions. An environment where it is easy to stop playing and take a break is both a service improvement and a customer protection measure to reduce excessive use.

 

◆ ATM and Banking Inconveniences: Verifying Preventive Effects

 

Complaints surrounding the use of financial facilities are also an issue that must be viewed from the customer's perspective.

 

Customers are complaining about increased burden and inconvenience following the relocation of ATMs that were inside the casino to the outside, changes in the access routes to the Shinhan Bank casino branch, and reduced operating hours.

 

The intention to curb impulsive gambling by putting a brake on additional fund withdrawals is understandable. However, it must be verified separately whether measures that make movement cumbersome actually lead to a reduction in excessive gambling and harm.

 

In particular, banking tasks such as cash withdrawal, deposits, and returns have different purposes. It is necessary to check whether customers are being unnecessarily inconvenienced even when they are trying to finish their business and go home.

 

The entities responsible for the relocation and operational changes, the basis for their application, and the bank's circumstances should also be explained separately. If customers are only told about regulations without knowing the cause of the inconvenience, distrust can grow.

 

Along with the effectiveness of limiting access to funds, alternatives such as counseling linkages and support for stopping usage should also be evaluated. Customer protection policies should be based on how much harm they have actually reduced, rather than the strictness of the measures.

 

◆ Explaining to Customers with the Weight of a Monopoly

 

Not all inconveniences can be blamed on government regulations. There are many areas that the company can improve on its own, such as guidance, responsiveness, game machine layout, and facility management.

 

Conversely, government-imposed restrictions should not be lumped together with problems like poor service. The company must disclose which parts are difficult to change due to regulations and which parts can be solved through operational improvements, and take responsible action for each.

 

Responsible gaming policies require the same principles. They should help users check their own usage time or spending, intervene appropriately when warning signs appear, and lead to counseling and recovery support.

 

Protective measures cannot be relaxed just because competition with overseas casinos has intensified. Operational capability that respects customers while reducing harm must become a long-term competitive edge.

 

Lee Ki-won, Chairman of the Korea Gaming Tourism Professionals Association, pointed out, "Kangwon Land's past crises showed that a monopoly does not guarantee fairness or customer trust," adding, "Future growth must be proven through internal fair organization, improved on-site service, and effective customer protection."