Jeju Island’s authorities have long been working on making the island a world-class tourist and entertainment destination. It is part of South Korea, takes more than 1,800 square kilometers of land and has over 600,000 citizens.
The island’s Governor, Mr. Won Hee-ryong, showed interest in mimicking the gambling regulation framework of Singapore – the Casino Regulatory Authority, which has a reputation of being strict yet flexible, providing a stable inflow of investments and taxes to the government.
The Governor plans to establish such regulations and a taxation system, which is hoped to invigorate the local economy further and lure more international investors from the tourism, gambling and other sectors.
He explained that the first thing was to create a efficient gaming regislation as well as an optimal taxation system. After that, a constructive discussion can be done to decide whether new casinos are a good choice for Jeju Island.
Mr. Hee-ryong’s proposition would implement new, detailed regulation clauses and would put potential foreign investors under thorough analysis for any future gambling licenses, which is to be issued. The proposal strongly resembles the design of the gambling regulations which were implemented after Singapore raised its ban on gambling in 2005.
The proposal also includes suggestions on an improved taxing system to ensure maximum profit and visibility in the gambling industry of Jeju Island.
Another part of the proposal will focus on strengthening the current foreign investments on Jeju Island, most of which are from Chinese investors. There has been many Chinese companies who have bought land for agriculture. The land visa system which was introduced back in 2011, has been slowing down the process for Chinese businesses, and the Governor proposes that the system is analyzed and revised to suit the current needs of that sector.
Representative of the Politics Alliance Democracy stressed on the need for reforms, as Chinese investments have been rapidly growing for the last four years. He stated that Chinese entrepreneurs own more than 40% of the industrial land in Jeju which constitutes for almost 6 million square meters.
The authorities are aware of the impact that foreign investments have on the local economic growth, however, they stress on the issue that investments are so high that the island is suffering from an economic phenomenon called “reckless development”.
Concerning this issue, Governor Won explained that his proposal has considered the problem, and part of the new reforms will address it in particular. Some of the measures proposed are to increase the cost of properties, and the requirements for international businesses and individuals to acquire a local living permit.
Requirements for international projects focused on transforming new land into business buildings or agricultural sights would be tightened up as well. Regulations and requirements for real estate construction as well as casino establishments would also be more strict.
Mr. Lee Un-ju from the NPAD, also called for reforms in the gambling industry in order to attract new investors. He continued by reminding that the Jeju Governor’s proposal would have to be discussed by the central government before it is taken to the next stage of acceptance.
