Kangwon Land posts KRW3.63bn third-quarter net loss after bond fair-value hit

Kangwon Land Inc reported a KRW3.63-billion net loss for the third quarter ended 30 September 2026, down from a KRW113.07-billion profit in the same period a year earlier. The company said the swing was driven mainly by a sharp decline in non-operating income, with fair-value losses on financial assets following a rise in bond yields.

How the loss broke down

Kangwon Land recorded a net non-operating loss of about KRW55.9 billion in July–September, a 177.6 percent year-on-year decline that the firm attributed chiefly to higher bond yields. The company commented:

"While these bonds are expected to provide principal protection and interest income if held to maturity, fair value losses were recognised in net income for the third quarter."

Operationally, third-quarter operating income was KRW59.67 billion, down 17.9 percent year-on-year. Group-wide quarterly sales fell 3.8 percent to KRW369.45 billion.

Gaming performance and visitor metrics

Casino visitor numbers to the Kangwon Land resort decreased 3.2 percent year-on-year in the third quarter to 640,039 visitors, which the company said led to a 2.5 percent reduction in gross gaming revenue (GGR) to KRW359.4 billion. The mass gaming segment, which includes foreign visitors, posted a 4.8 percent decline in GGR to KRW294.9 billion, driven by a 3.4 percent fall in visitation and a 6.5 percent decline in drop. By contrast, the VIP segment recorded a 9.6 percent increase in GGR to KRW64.5 billion, supported by an 11.1 percent rise in visitation and a 5.2 percent increase in drop.

Net gaming revenue recognised in the income statement — after deductions for the 'High1 Point' loyalty points and including casino food and beverage sales — declined 1.8 percent year-on-year to KRW327.8 billion.

Non-gaming and renovation impacts

Third-quarter non-gaming revenue dropped 17.4 percent year-on-year to KRW41.7 billion, primarily because hotel and condominium room revenue and water park revenue fell amid ongoing room renovations. Since March, Kangwon Land has been renovating 757 rooms in total: 477 rooms in the Grand Hotel Main Tower and 280 rooms in the Mountain Condominium. The condominium renovations are scheduled for completion in the fourth quarter of 2027 and the hotel work in the first quarter of 2028.

Nine-month results, investment and shareholder returns

For the first nine months of 2026 the company remained profitable, reporting KRW145.90 billion in net profit, down 41.8 percent year-on-year. Kangwon Land allocated an investment budget of KRW145.4 billion for 2026, with cumulative spending of KRW110.1 billion as of the third quarter. Key projects cited include guest room renovations, VIP gaming area remodelling, and construction of the second casino.

Under its 2024–2026 shareholder return policy, the company targets a dividend payout ratio of at least 50 percent and a total shareholder return ratio (dividends plus buybacks) of 60 percent. Kangwon Land said it plans to repurchase KRW20 billion of treasury shares by the end of the year, with timing to be disclosed on board approval.