Controversy over govt’s plan to open cruise casinos to local residents

The Korean government has announced a plan to establish cruise ship operators of Korean nationality and allow local residents to use casinos on cruise ships, which may take effect this year at earliest. “The government plans to allow local residents to use casinos on cruise ships flying the Korean national flag,” Maritime Minister Yoo Ki-june told a press conference at the Sejong Government Complex on Thursday. The minister said, “As consensus on this issue has been formed to a certain level, the government plans to submit a revision of the related bill to the National Assembly soon.”

Under the "Act for Cruise Industry Development and Support," the so-called Cruise Act that passed the Assembly in January, casinos are allowed on cruise ships carrying the Korean national flag but it is prohibited for local residents to use casinos. The government views that competitive operators may participate in the local cruise ship business by allowing local residents to use casinos on cruise ships which use Korean ports as home port. Economic feasibility is low by attracting only foreign tourists such as Chinese, according to analysis of the government. In 2012, a cruise ship operator Harmony Cruise launched a cruise ship that ran between Busan and Japan, but stopped its operation after 10 months due to decreasing number of passengers.

The government plans to submit a revision bill of the Cruise Act, which includes exemption to allow local residents to use cruise ship casinos, just as Jeongseon Casino, the only local casino that is open to Koreans. Jeongseon Casino in Gangwon Province is also under the exemption.

However, political dispute is expected due to controversy over gambling in the process of passing the revision bill in the Assembly. While pursuing to foster the cruise industry, the government has set the cause for development of tourism industry by attracting foreign tourists to cruise tour programs. Some criticize that the government’s permit on the use of casinos on cruise ships by local Koreans may turn the cruise industry into the gambling industry. There is also criticism whether it is necessary to provide financial benefits to such cruise ships of Korean nationality.

An insider from the government said, “It costs 4 million won (approx. USD 3,668) to get on board a cruise ship. If a local Korean wants to gamble, he probably go to the Jeongseon Casino, not using a casino on the cruise ship. In that vein, casinos on cruise ships are a leisure facility rather than a gambling facility.” The Maritime Ministry is now negotiating with four companies to launch a cruise ship operator carrying Korean national flag and plans to issue a ship operator license to one or more companies within this year. Cruise ship will start operation in the first half of next year at earliest.

jikim@donga.com