South Korean Casinos Raided in Corruption Investigation

Prosecutors are eager to learn whether lobbying laws were broken in the bidding process, and whether Hanmoo was selected over other firms with higher scores and better bids.

South Korean law enforcement raided two casinos run exclusively for foreigners, seeking proof of embezzlement and breach of trust. The two Seven Luck casinos in Seoul were searched, as well as the offices of the casino operating company, Grand Korea Leisure, and Grand Korea's chairman, Park Jung-sam.

Grand Korea is a subsidiary of the Korea Tourism Organization, the state's government-owned tourism bureau.

The raid occurred as part of an investigation into the awarding of the casino venues to Hanmoo Convention Corporation. The government Board of Audit and Investigation found reason to believe Hanmoo was unfairly given the site development, even though the company did not meet necessary qualifications.

Prosecutors are eager to learn whether lobbying laws were broken in the bidding process, and whether Hanmoo was selected over other firms with higher scores and better bids. Also under investigation is the possibility of embezzlement of casino funds by management at either Grand Korea or the KTO.

The two Seoul locations of Seven Luck, combined with a third location in Busan, reported over $311 million in winnings last year, up almost triple from 2006, the first year of their existence.

So, corruption may be possible in the dealings of Oriental casinos. One can be sure news of that shocks and dismays Stanley Ho. Wouldn't it be more shocking if everything were found to be on the up-and-up, and by the book?