Characterizing such licenses as a "major government favor," the President called for a comprehensive review of the current framework, triggering immediate reactions in the financial markets.

President Lee expressed skepticism regarding the justification for allowing private companies and individuals to manage casino operations. Highlighting the enormous financial returns inherent in the gambling industry, Lee suggested that awarding such lucrative licenses to private commercial entities is questionable. His remarks directly challenge the legitimacy of the existing private-sector licensing model, implying that a public-sector operational framework might be more appropriate for managing casino revenues and social impact.

Market Response to Presidential Commentary

The President's statements led to a downturn in gaming stocks on Wednesday. Shares of Paradise Co Ltd and Lotte Tour Development Co Ltd—the primary private operators of foreigner-only casinos in Korea—dropped as investors weighed the potential for policy shifts. The market's negative reaction reflects growing concerns over the future stability of private gaming licenses under the current administration.

Kangwon Land and Deregulation Discussions

In a follow-up session on Wednesday, the leadership of Kangwon Land Inc, South Korea's only casino authorized for domestic players, presented their "K-HIT 1.0" reinvestment program. Interim CEO Choi Cheol-gyu requested significant deregulation to enhance international competitiveness, including:

• The removal of the 180-day annual usage limit for Korean nationals.
• The elimination of daily operating hour restrictions.
• Approval for expanded gaming floor space.
• Raising the maximum betting limit from KRW 300,000 to KRW 1 million.

Presidential Response and Policy Outlook

President Lee characterized the expansion initiatives as high-risk ventures that require rigorous departmental evaluation to avoid operational failure. While he expressed concerns that gambling could represent "terminal symptoms" of societal decline, he also acknowledged its role in supporting the leisure and sports sectors. This balanced yet cautious stance suggests that future casino policy will navigate a complex path between economic stimulation and social responsibility.

Political Economy Context

Interestingly, while private operators saw their stock prices fall, government-controlled entities like Kangwon Land and Grand Korea Leisure (GKL) saw slight gains. Analysts suggest this indicates a market perception that presidential intervention may ultimately favor state-led operations over private competition, despite the broader regulatory complexities.