Melco Gaming Assets Management (Korea) Limited, a wholly-owned subsidiary of Melco International, has entered into a strategic cooperation arrangement with New Silkroad Korea Development Limited, a wholly-owned subsidiary of New Silkroad on the provision of consultancy services for its casino project on Jeju Island, South Korea.
Melco is to provide consultancy services to New Silkroad with regard to building, equipping and fitting-out of New Silkroad’s new casino on Jeju Island, as well as preparation and organization of the casino’s marketing activities. The services also include the provision of intellectual property and know-how.
SU Bo, Chairman and Executive Director of New Silkroad, said: “The strategic partnership with Melco will enable New Silkroad to benefit from the extensive experience and expertise of the respected international gaming brand, through its participation in the design and early-stage development of our mega-casino. We expect the casino to be a true world-class player with the highest standards in operations and internal controls, enabling us to grow and enhance our core competitiveness while we diversify our business into overseas tourism real estate industry, thereby broadening our income sources and creating value to our shareholders. We look forward to a long term partnership with Melco as we grow into a larger and more sustainable company.”
Clarence Chung, Executive Director of Melco, added: “We are delighted for Melco to participate in this exciting project in South Korea with New Silkroad. Leveraging our strong experience and proven track record of creating and operating world-class integrated entertainment and leisure resorts across different geographies such as Macau, Manila and Russia, Melco can bring professional concepts and practices to New Silkroad’s project and enhance Jeju’s tourism appeal on a global stage.”
New Silkroad has officially entered South Korea’s gaming and entertainment business through the acquisition of Development Golden Beach last December. Upon completion of the latest acquisition, New Silkroad will hold a 72 per cent equity stake in Golden Beach, which was awarded the Gaming Licence No. 8, one of the eight gaming licences on Jeju Island and operates a casino there. With the string of world-class integrated resorts opening on Jeju Island, coupled with the South Korean government’s vigorous promotion efforts, Jeju’s tourism industry, along with the island’s casino market is expected to undergo rapid growth. New Silkroad is looking to expand the casino business with the purpose to capture the growing gaming market and booming tourism industry on Jeju Island. The move is also in line with the strategy of its substantial shareholder Macrolink Real Estate to expand the tourism real estate businesses.
Lawrence Ho, Group Chairman and CEO of Melco is pictured above second from the right, along with Fu Jun, Chairman of Board of Directors and President of Macrolink Group (second from the left),. Clarence Chung, Executive Director of Melco (first from the left), and Su Bo, Chairman and Executive Director of New Silkroad (first from the right).