Since the South Korean government announced a proposal to double the casino tax by next year, Bloomberg reports that stock for Kangwon Land Inc., the country’s sole casino for local citizens, took a hit.
Kangwon Land declined the daily limit, 15 percent, to 15,950 South Korean won, which the news service reported was its biggest drop since October 2001.
“Imposing a 20 percent tax on companies suffering from stiffer competition and falling profit is just like they are telling us to shut down shops,” said Paradise Co., Kangwon Land’s competitor, in a prepared statement yesterday. ''If they take away 20 percent of net sales, most of the companies will go out of business.''
After the announcement, Paradise also dropped 15 percent to 2,085 South Korean won -- its lowest point since 2002.