South Korean Casino Stocks Set for Second-Half Windfall, Say Analysts

South Korean casino stocks are set for a bumper second half of 2026, domestic analysts say, with gambling hotspots set to benefit from a surge of 25% in Chinese tourist arrivals.

Experts said the still-stagnant South Korean casino sector is beginning to attract investor interest, driven by expectations of a recovery in Chinese tourism figures, EBN reported.

Paradise, the operator of casinos and resorts in Incheon and Busan, reported a 4% rise in consolidated revenue in the first quarter of 2026. But Shinhan Investment & Securities projects a further quarterly rise of over 8% for Q2.

Shinhan experts say revenues will hit $213 million. The analysts also expect operating profits to rise by 18% to reach over $29 million.

The firm said Paradise was in pole position to “benefit most” from a rise in Chinese tourist numbers due to the fact that it has casinos in Incheon and Busan.

The cities host the country’s largest and fourth-largest airports, respectively. Busan is also the home of South Korea’s biggest passenger seaport.

“As the number of foreign visitors increases rapidly, so too does the number of casino patrons,” financial experts told the same media outlet.

And that, say insiders, is leading to “growing optimism” regarding the performance of major casino companies.

South Korean Casino Stocks: Analysts Say Reversal Is Coming

Other operators could also be set for major windfalls.

Lotte Tour Development, the operator of the Jeju Dream Tower integrated resort, posted record-high consolidated revenues in Q1.

Revenues rose by over 28% year-on-year. But Shinhan Investment and Securities expects a further quarter-on-quarter rise of over 25% to $131 million.

Experts say international flights to Jeju, increased casino footfall, and rising hotel occupancy rates will drive up gaming floor revenues.

Samsung Securities experts said Lotte Tour Development is now benefiting from “excellent profitability per visitor.” The firm said Lotte’s drops are lower than those of its competitors, but added that its hold rates are higher.

The experts said that Grand Korea Leisure, the operator of the Seven Luck casino chain, would also benefit from rising tourist numbers.

The analysts added that they expected to see “a stable recovery in performance” at Grand Korea Leisure.

This, they said, would be “driven by an increase in Chinese VIP customers and general tourists” at its foreign-passport-holder-only casinos in Seoul and Busan.

Chinese Tourism Pivot: ‘A Valid Strategy’

“Pivoting toward Chinese tourists remains a valid strategy,” said Ji In-hae, a research analyst at Shinhan Investment and Securities.

Ji added that Busan was “highly likely to become the biggest beneficiary” of visa waiver incentives that have seen tourism numbers rise in recent months.

Despite the experts’ buoyancy, South Korean casino stocks had a sluggish end to trading last week. And despite the Q1 cheer, stocks of major operators have lagged far behind the KOSPI for most of the year.

The Korea Exchange’s all-share index has skyrocketed in 2026, driven by a surge in investment in domestic chipmakers.

However, opposition leaders have accused President Lee Jae-myung of recklessness in pursuit of KOSPI investment.

The leader of South Korea’s second-largest political party said Lee had turned the stock exchange into a “KOSPI casino” by green-lighting controversial leveraged exchange-traded funds.