GKL operates the 'Seven Luck' casinos, open only to foreigners, in the Gangnam and Gangbuk areas of Seoul and in Busan; its revenue is the house's winning share of the amounts guests bet at gaming tables and slot machines, and with Japanese guests making up about half and Chinese about a quarter, its results are tied directly to a recovery in inbound tourism to Korea, especially among high-rolling Japanese and Chinese visitors. It discloses provisional revenue every month, and monthly revenue hit a record in May and kept rising in June, with visitor numbers and drop up by double digits; it announced a corporate-value-up plan targeting casino revenue of ₩503.8 billion by 2030 and posted a 2025 payout ratio of 54.4% and a dividend yield of about 4%. What stands out lately is that the real recovery is underway in double digits and the company has strengths in a net-cash balance sheet, a 15% FCF yield, a forward P/E of about 12x and a high dividend, but its results are tied directly to external variables such as Japanese and Chinese visitors, the yen exchange rate and the hold rate.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 6.7% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 0.7% higher than a year earlier.
- ROE is 10.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 12.4%.
Ownership & governance As of 2025-12-31
Largest shareholder Korea Tourism Organization 51% (corporate)
Controlling bloc incl. related parties 51%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
🔎 In-depth analysis
- GKL operates the 'Seven Luck' casinos, which are open only to foreigners.
- It has venues in Gangnam and Gangbuk in Seoul and in Busan.
- The way it makes money is simple.
- Of the amount foreign guests bet at gaming tables and slot machines (the drop), the house's winning share becomes revenue.
- So the backbone of its results is 'number of visitors x bet per person x the casino's win rate (hold rate).' Its main guests are about half Japanese and about a quarter Chinese, with the rest from Hong Kong, Taiwan and elsewhere.
- In other words, this company's results are tied directly to a recovery in inbound tourism to Korea, especially among high-rolling Japanese and Chinese visitors.
- Koreans cannot enter, so its clientele differs from Kangwon Land, which Koreans can enter.
- The latest close is ₩10,300 and the market cap is ₩637.1 billion.
- The price sits below both the 20-day line (₩10,938) and the 60-day line (₩11,472).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 40.4, a neutral level.
- The one-month change is -14.7%, the three-month change is -8.0%, and the price is -41.1% from its 52-week high.
- Relative strength versus the KOSPI is 7 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 94% of all stocks by strength.
- Over the past three months it lagged the index by 27.1%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The valuation is a P/E ratio (how many times a year's earnings the share price is) of 13.53x and a P/B ratio (how many times net assets the share price is) of 1.44x.
- Profitability is solid.
- ROE (how much a company earns in a year on its equity) is 10.7%, high relative to peers, and the operating margin is 12.4%.
- The balance sheet is sturdy.
- Net debt (total borrowings minus cash; negative means net cash) is roughly -₩161.3 billion, a net-cash position with more cash than debt.
- Factoring debt in here makes the picture even clearer.
- EV/EBIT (enterprise value divided by operating profit - a kind of P/E that also reflects debt) is 9.2x and EV/EBITDA is 5.7x, both lower than the P/E on its own.
- That is a signal that, thanks to the large cash pile, the actual business is valued more lightly than the market cap.
- The FCF yield (cash actually generated relative to market cap - the higher, the more attractive the cash generation) is about 15%, quite high.
- This strong cash generation is the basis for the 4%-range high dividend.
- For reference, a casino is a business that rents its venues rather than piling up assets, so it is truer to reality to look at earnings and cash-flow metrics than at P/B.
- Over five years the recovery trajectory is clear.
- In 2021, when air routes were closed by COVID, revenue was ₩85.1 billion with a large loss.
- After that, as foreign tourism reopened, it swung to a profit in 2023, and in 2025 earnings jumped sharply, with revenue of ₩422.9 billion (+6.7%), operating profit of ₩52.6 billion (+37.4%) and net profit of ₩47.1 billion (+42.4%).
- Q1 this year, however, took a brief breather.
- Revenue was ₩110.7 billion (+0.7%), operating profit ₩18.1 billion (-10.4%) and net profit ₩15.1 billion (-6.3%), so earnings slipped slightly.
- This was due to swings in the hold rate (the casino's win rate) and marketing costs.
- But the underlying real-world indicators actually strengthened.
- Q1 drop was ₩931.0 billion (+12.6%) and admissions were about 270,000 (+20.3%), both up by double digits, with Japanese visitors in particular up 37.5%.
- In Q2, May monthly revenue hit a record ₩43.1 billion (+40.8%), and June continued the uptrend with revenue of ₩37.2 billion (+7%).
- With visitor numbers and betting size growing, this year's profit has a good chance of exceeding last year's level.
- Reflecting this trajectory, the forward P/E for this year is about 12x, lower than the 13.7x based on last year's results.
- Because profits are growing, on a forward basis it actually gets cheaper.
- The main threads of the disclosures are twofold.
- First, the real-world recovery in results.
- The company discloses provisional revenue every month, and monthly revenue hit a record in May and kept rising in June.
- With visitor numbers and drop up by double digits, the recovery is being confirmed in the numbers.
- Second, a strengthening of shareholder returns.
- The company officially announced a corporate-value-up plan targeting casino revenue of ₩503.8 billion by 2030.
- In this plan it stated that it will maintain a payout ratio above the target for government-invested institutions (40%).
- The 2025 payout ratio was 54.4% and the dividend yield about 4%.
- As growth strategy, it presented the cultivation of emerging markets such as Taiwan, Thailand and Mongolia, and a strengthening of digital marketing to general (MASS) customers using the 'Seven Luck' app.
- The strengths are clear.
- Visitor numbers and drop are growing by double digits, and the real-world recovery is underway.
- With a net-cash structure and a 15% FCF yield, cash generation is strong.
- On top of that, the company has officially set a target of a 54% payout ratio and a 4%-range yield as a high dividend.
- The valuation is not much of a burden either.
- A forward P/E of about 12x is not excessive given the ROE (10.7%), which is not low relative to peer foreigner-only casinos, and the high dividend.
- The cautions must be seen together as well.
- Results are tied directly to the external variable of Japanese and Chinese visitors.
- As a result, they are sensitive to the flow of Chinese group tourism and any 'Korea ban' and to changes in the yen exchange rate.
- Also, as in Q1, if the hold rate comes in low, profits can be depressed even as visitors increase.
- In sum, this is a stock that is strong in a phase where the inbound-foreigner recovery and high dividend hold, and weakens if high-roller visits are shaken by geopolitics or exchange rates.
🔎 Valuation vs peers Fairly valued
Using foreigner-only casino operators (the same business) and a domestic casino as the peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Paradise | 11.99x | 0.66x | 5.47% |
| Kangwon Land | 9.89x | 0.79x | 8.03% |
The closest peer is Paradise, likewise a foreigner-only casino. GKL's P/B of 1.46x is higher than Paradise's (0.78x). But this is justified by an ROE nearly twice as high (10.7% vs 5.5%) and a dividend yield roughly four times higher. There is also the difference that Paradise directly owns an integrated resort and so carries large assets, whereas GKL rents its venues in an asset-light structure, which makes its P/B look relatively higher. The P/E based on last year's results is 13.7x, but with this year's profits growing it falls to about 12x on a forward basis. In an earnings-inflection phase the forward figure, not last year's P/E, is the truer picture, and given the high ROE and high dividend, the current valuation is not at an unreasonable level.
Price history Close · MA20 · MA60
The latest close is ₩10,300 and the market capitalization is ₩637.1 billion. The price sits below its 20-day moving average (₩10,938) and below its 60-day moving average (₩11,472). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 40.4, a neutral level. The one-month change is -14.7%, the three-month change is -8.0%, and the position relative to the 52-week high is -41.1%. Relative strength versus the KOSPI is 7 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 6% of all stocks. Over the past three months it lagged the index by 27.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -27.11% / 6M -54.21% / 12M -72.79%
Key metrics vs whole-market median
Valuation
The P/E of 13.53x is in line with the whole-market median (13.81x). The P/B of 1.44x is above the whole-market median (1.15x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 10.7%, above the whole-market average (5.0%). The operating margin is 12.4%. The debt ratio is 147.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $262.9M | $262.7M | $280.3M | +6.70% ↑ faster |
| Operating profit | $33.8M | $25.4M | $34.9M | +37.36% ↑ faster |
| Net profit | $29.1M | $21.9M | $31.2M | +42.38% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $56.4M | $173.7M | $262.9M | $262.7M | $280.3M |
| Operating profit | -$96.7M | -$9.2M | $33.8M | $25.4M | $34.9M |
| Net profit | -$75.1M | -$15.1M | $29.1M | $21.9M | $31.2M |
| Revenue CAGR | 4-yr avg 49.32% | ||||
Revenue rose 6.7% year over year (2023 ₩396.7 billion → 2024 ₩396.4 billion → 2025 ₩422.9 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 37.4% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 49.3%. The two-year revenue CAGR is 3.3%. In the most recent quarter (Q1 2026), revenue was 0.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 4.0%, is on the high side.
- ROE of 10.7% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-07-02EarningsJune provisional-revenue disclosure - casino revenue of about ₩37.2 billion (+7% year over year) and drop of about ₩327.8 billion (+9%), continuing the uptrend.Monthly real-world indicators keep rising, supporting an improving trend in Q2 results. A near-term positive. Source
- 2026-06-04EarningsMay provisional-revenue disclosure - casino revenue of about ₩43.1 billion (+40.8% year over year), a record monthly revenue, with drop of about ₩379.5 billion (+16%).With visitor numbers and betting size surging early in Q2, it confirms the strength of the recovery. A near- to medium-term positive. Source
- 2026-05-15EarningsQ1 2026 report - revenue ₩110.7 billion (+0.7%), operating profit ₩18.1 billion (-10.4%), net profit ₩15.1 billion (-6.3%). Drop ₩931.0 billion (+12.6%), admissions about 270,000 (+20.3%), Japanese visitors +37.5%.Profit slipped slightly on hold-rate and cost effects, but visitor numbers and drop rose by double digits. The real-world recovery continues. Source
- 2026-03-26FilingCorporate-value-up plan announced - targeting casino revenue of ₩503.8 billion by 2030, maintaining a payout ratio above the target for government-invested institutions (40%), cultivating emerging markets (Taiwan, Thailand, Mongolia) and strengthening Seven Luck app digital marketing.The company formalized its medium- to long-term growth direction and the maintenance of a high dividend. A medium-term positive from a shareholder-return standpoint. Source
- 2026-06-08Earnings2025 business report - revenue ₩422.9 billion (+6.7%), operating profit ₩52.6 billion (+37.4%), net profit ₩47.1 billion (+42.4%), net-cash structure confirmed.Full-year results that lock in the post-COVID recovery trajectory. The financial basis for the high dividend. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-08PeriodicAnnual business report (amended)
- 2026-06-04EarningsFair-disclosure notice
- 2026-06-01Shareholders' meeting notice
- 2026-05-29Corporate governance report
- 2026-05-15Shareholders' meeting notice
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-05-13Shareholders' meeting notice
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-06EarningsFair-disclosure notice
- 2026-05-06EarningsEarnings disclosure
- 2026-04-02EarningsFair-disclosure notice
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.