[Inside Chodong]30 Months of Vacancy... The "True Expert" Kangwon Land Needs

CEO Position Vacant for 2 Years and 6 Months: Acting System Continues
Recent Open Recruitment for CEO Candidates
Rumors Circulate of Ruling Party Politician and Former Army General Being Tapped
Labor Union and Local Community Oppose "Parach

The CEO (President) listed on the official Kangwon Land website is still the former president, Lee Samgeol. Due to delays in appointing a new CEO, the name of the previous president, who stepped down on December 1, 2023, has not been updated for more than two years. In the meantime, the position of CEO has been managed by successive acting officials, and other key executive roles at the headquarters level, whose terms have ended, have also been filled by acting officials.

Kangwon Land, which has been experiencing the longest-ever leadership vacancy of more than 30 months, began publicly recruiting candidates for CEO and executive director (vice president) positions last month. The CEO of Kangwon Land, a public enterprise that operates casinos and integrated resorts, is screened and recommended by the executive recommendation committee formed by the board of directors. Afterward, the candidate is reviewed and approved by the Public Institution Management Committee of the Ministry of Economy and Finance, and after a resolution at the general shareholders meeting, is nominated by the Minister of Trade, Industry and Energy and finally appointed by the president.

It has been reported that, after narrowing down the pool of applicants, interviews for the candidates were held on June 4 and 5, following the June 3 local elections. In the meantime, rumors have spread that a politician from the ruling party, who is a former army general, has been named as the next president. This has sparked opposition among employees and the local community, who are against appointing someone with no experience or understanding of the casino and tourism industries.

The Kangwon Land labor union recently issued a statement denouncing the rumored appointment as a "parachute appointment," declaring, "What Kangwon Land needs now is not a figure from the military or a politically-motivated parachute appointee, but a true business expert who fully understands the casino and tourism industries and has the ability to communicate on the ground." The union also warned, "If the government pushes ahead with the appointment of a parachute appointee, we will do everything in our power to block their entry to work and launch an all-out struggle to stop it."

Previously, in March last year, after the 12·3 Martial Law incident, a public recruitment process for the CEO of Kangwon Land was also held. At that time, there were also rumors of a former navy general being appointed, and the union protested against "parachute and placeholder appointments." The process was halted before the presidential election, citing a lack of suitable candidates.

Since its establishment in June 1998, Kangwon Land has seen ten presidents come and go, with the parachute appointment controversy repeatedly arising. This is because most CEOs have been former high-ranking officials or politicians from the central or local governments, with little connection to the casino, resort, or tourism industries. Since the company was founded to revitalize the economy of a former mining area and foster the tourism industry, the influence of the local community remains strong.

As it approaches its 30th anniversary, Kangwon Land faces a turning point. Despite a rise in foreign visitors to Korea and an overall boom in domestic tourism, the number of casino visitors in the first quarter of this year was about 626,000, an increase of only 0.8% from the same period last year. Although it is the only casino in the country where both foreigners and Koreans are allowed, there are concerns that when a new integrated resort opens in Osaka, Japan, in 2030, a significant portion of both domestic and foreign customers could be drawn away. According to a survey conducted by the Korea Casino Industry & Tourism Association on Kangwon Land visitors, 47.9% responded that they would consider visiting the Osaka resort when it opens.

Kangwon Land is pursuing the "K-HIT Project," aiming to become a global integrated resort destination by building new casino and entertainment facilities, eco-friendly resorts, and year-round leisure sports parks. The plan is to invest 3 trillion won by 2035 to attract 13 million visitors annually and reach annual sales of 3.5 trillion won. Numerous regulatory issues still need to be addressed to improve profitability, such as the total sales cap, operational hours, and betting limits. In a situation where the need to prevent the indiscriminate spread of gambling industries is at odds with the goal of revitalizing the local economy, the expertise of a "true professional," as demanded by employees, is more critical than ever to resolve these business challenges.

This content was produced with the assistance of AI translation services.