South Korea’s Jeju Sun Hotel casino has reopened under new ownership and branding, relaunching as Blue One Casino on March 16 following a three-month refurbishment. The venue, now operated by Blue One Ltd, a subsidiary of KH Group, marks a complete changing of the guard after Philippines-listed Bloomberry Resorts Corporation completed its exit from the Jeju market earlier this month.

The transaction closed on March 4. Bloomberry divested its casino operations through a structured demerger, spinning the gaming business into a separate entity, Heaven Co Ltd, before selling it to Blue One Ltd for KRW10 billion (US$6.6 million). KH Group paid KRW7 billion upfront, with the balance of KRW3 billion due by February 27, 2027. Bloomberry retains ownership of the hotel real estate and continues to operate the property itself, neatly separating the struggling gaming division from its accommodation business.

Strategic Repositioning in Jeju’s Foreigner-Only Market

The sale represents a clean break for Bloomberry from what had become a persistently underperforming asset. The casino’s 2025 performance was dire, with gross gaming revenue collapsing 60.7% year-on-year to just PHP17.3 million (US$286,676). Net losses for the year reached PHP251.4 million. The divestment was a logical strategic move for the Philippines-based operator.

KH Group moved swiftly to stabilise operations following the acquisition, prioritising staff retention and completing organisational integration ahead of the March 16 relaunch. The casino operated 47 live gaming tables and 17 slot machines as of December 2024, with 68 employees on payroll. It benefits from prime positioning, just ten minutes from Jeju International Airport, offering excellent connectivity to the island’s tourist traffic.

Table Games Focus and Tourism Evolution

Blue One Ltd’s operational strategy centres heavily on table games, targeting steady revenue growth in Jeju’s foreigner-only gaming market. KH Group sees favourable macro trends emerging. There’s a shift in international visitor behaviour, away from shopping-focused trips toward experience-driven tourism. The company is banking on encouraging longer stays that drive higher per-capita spending across gaming, accommodation, and island attractions.

It’s a sensible read of the market dynamics. Jeju has long drawn foreign visitors to its handful of foreigner-only casinos, but the island’s appeal as a leisure destination extends well beyond the gaming floor. If KH Group can use the casino as an anchor for extended stays rather than brief stopover visits, the economics improve considerably. The table games emphasis aligns with typical preferences among Asian VIP players, the core demographic for these properties.

The acquisition price of KRW10 billion for a venue generating under US$300,000 in annual gaming revenue might raise eyebrows. The valuation likely reflects the real estate proximity to the airport, existing infrastructure, and turnaround potential rather than current earnings. For KH Group, this represents a calculated entry into Jeju’s gaming sector at a moment when the previous operator had clearly lost appetite for the investment required to reverse the decline.

Whether Blue One Casino can execute on its growth thesis remains to be seen. The fundamentals, staff continuity, location, and refreshed branding, provide a reasonable foundation. The relaunch comes at an opportune moment as Jeju repositions itself within evolving regional tourism patterns. KH Group will be hoping the Blue One rebrand marks the start of a more profitable chapter for this small but strategically located property.

What the team thinks

Sheena McAllister says:

Interesting to see KH Group moving quickly with the rebrand, though from a regulatory standpoint the real story here is how smoothly South Korea’s gaming authority facilitated the licence transfer during what must have been fairly complex due diligence. The three month turnaround from Bloomberry’s exit to reopening suggests Seoul is keen to maintain Jeju’s appeal to foreign casino operators, which could signal a more streamlined approach to future ownership changes in this market. Worth watching whether Blue One’s operational standards align with the compliance frameworks Bloomberry had established, particularly around AML protocols.