Kangwon Land Slot Division Reports $11 Million Loss Over Six-Year Period

South Korean gaming giant Kangwon Land Inc. is facing a deepening crisis within its proprietary slot machine manufacturing division. While the company enjoys a monopoly as the only casino in South Korea where locals are permitted to gamble, its KL Saberi manufacturing arm, launched in 2017, has become a significant financial liability. Data recently submitted to the National Assembly of South Korea reveals a stark economic reality. Between 2020 and 2025, the division accumulated total losses of KRW 14.81 billion, equivalent to roughly $11 million.

The trend of annual losses is particularly concerning for stakeholders. The deficit began at KRW 1.40 billion in 2020 and has expanded almost every year since. In 2021, the loss reached KRW 2.4 billion, followed by a slight dip to KRW 2.23 billion in 2022, before climbing again. By 2025, local media estimates suggest the annual loss had grown to approximately KRW 3.4 billion. KL Saberi has failed to report a single year of operational profit during this period, casting serious doubt on the management's ambitious growth projections.

Numbers and facts

The gap between Kangwon Land's aspirations and its actual performance is vast. The company had previously forecasted that by 2031, it would produce 10,000 slot machines annually, generating KRW 500 billion in revenue and KRW 200 billion in net profit. However, actual sales tell a different story. Since opening a sales office in the Philippines in 2022, only 77 KL Saberi machines have been sold worldwide. Of these, 68 units—or 88.3 percent—were sold in the Philippine market. While 20 units were sold there in 2023 and 42 in 2024, the company recorded zero sales in the Philippines for the year 2025 as of the reporting date.

Political pressure is mounting. Lawmaker Koo Ja-keun of the People Power Party has questioned the necessity of the expensive overseas presence. Through August 2026, Kangwon Land spent approximately KRW 700 million on office leases, housing, and vehicle rentals in the Philippines. Given the stagnant sales in 2025, critics argue the expenditure is unjustifiable.

"A review of the Philippines office and the dispatch of staff is required to determine whether these permanent structures are even necessary." - Koo Ja-keun, Member of the National Assembly

Background

For several years, Kangwon Land has attempted to reduce its reliance on its land-based casino operations in the remote Gangwon Province. The KL Saberi brand was intended to be the gateway to the global market. In addition to the Philippines, the company targeted Macau and South America, successfully installing 40 machines in Montevideo, Uruguay. However, the global market is dominated by established giants such as IGT, Aristocrat, and Novomatic. Smaller manufacturers face an uphill battle to secure floor space in major resorts without a massive portfolio of proven, high-performing titles.

The financial strain of the slot division comes at a time when Kangwon Land is reviewing its strategic initiatives under new leadership. While other operators in the Asia-Pacific region are struggling with high debt levels—as noted in a recent Fitch report—Kangwon Land remains structurally sound but is burning resources in a business segment that hasn't seen a return on investment in over six years.

Why it matters for German players

For players in Germany, the losses of Kangwon Land have no direct impact on daily gaming, but they serve as a cautionary tale about the volatility of the gambling market. In Germany, the market is strictly regulated by the Interstate Treaty on Gambling 2021 (GlüStV 2021). While KL Saberi tries to sell hardware globally, the German Joint Gambling Authority (GGL) ensures that online casinos only offer games that meet strict safety standards.

Anyone wishing to play legally in Germany must stick to providers on the GGL whitelist. The rules are clear: a monthly deposit limit of €1,000 via the LUGAS system and a €1 stake limit per spin on virtual slots. These regulations protect players from high losses, much like sound financial planning should protect companies from miscalculations. The transparency now forced upon Kangwon Land by parliamentary inquiries is a standard feature in Germany thanks to GGL oversight.

What it means for GGL-licensed casinos

German online casinos with a GGL license typically rely on trusted software providers like Play'n GO, Greentube, or Pragmatic Play. The model of a casino operator becoming a manufacturer, as seen with Kangwon Land, is rare in Germany. Here, the separation between game development and platform operation is generally maintained. The failure of KL Saberi highlights the risks involved in developing proprietary hardware and software. GGL-licensed operators benefit from purchasing market-tested products rather than investing millions into manufacturing that may ultimately fail to find a market.