Kangwon Land sees debt halved in 2020 despite COVID-19 deficit

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South Koreas only casino at which locals are allowed to gamble, Kangwon Land, recorded a KRW275.88 billion (US$249.7 million) loss in 2020 due to COVID-19, but the deficit also resulted in its debts and liabilities plummeting.

According to a report by Korean corporate analysis website CEO Score Daily, Kangwon Land recorded one of the biggest declines in debt and current liabilities of any company last year, with total debt falling 45% year-on-year from KRW720.36 billion (US$645.0 million) to KRW394.64 billion (US$353.4 million) and current liabilities from KRW651.34 billion (US$583.2 million) to KRW329.97 billion (US$295.5 million).

This was attributed to a decrease in payments due, such as corporate tax and its annual contribution to the abandoned mine power generation fund, which are recognized as financial liabilities.

The reason the current liabilities decreased last year was because of the decrease in sales and profits, which reduced the amount of taxes and funds to be paid in the future for accounting, a Kangwon Land official said.

CEO Score Daily explained that its analysis of debts and current liabilities saw it look into 366 of the 500 largest companies in South Korea in 2020 based on their financial statements.

State-owned foreigner-only casino operator Grand Korea Leisure (GKL) saw its current liabilities fall 39% year-on-year to 128.84 billion (US$115.4 million).