Unfavorable Factors
During a press conference to celebrate an official opening of the Paradise City casino resort on Yeongjong Island, Incheon, on April 20, Paradise Group Chairman Jeon Phillip said, “As the first multi-complex resort in Northeast Asia, we will make the Paradise City as one of the best hallyu tourist destinations that people around the world can enjoy.” However, the group has caused a c over the recent sexual harassment case in the Paradise City.
According to local media, three female workers who joined Paradise Sega sammy, a subsidiary of Paradise Group, as an intern had been reportedly sexually harassed from their seniors at the same departments for months until November last year.
It is said that a female colleague reported the case to chiefs at the departments and holding company Paradise Group and requested for a disciplinary action, but any action had not been taken. The three victims and whistleblower eventually handed in their resignation and left the company.
The media reported that one of terminated employees reported the case to the police and the Ministry of Employment and Labor and the police sent the case to the prosecution. Suspected assailants were recently summoned by the prosecution and was placed under investigation twice.
However, Paradise Group has also faced another unfavorable factor. The National Tax Service has launched a tax investigation on the Paradise Group headquarters earlier this month. It is a periodical tax audit in six years after 2011. Paradise Group had undergone a special tax investigation under the National Tax Service in 2006 and 2011.
Paradise Group Chairman Jeon Phillip said that he will create new demand and advance a turnaround through the Paradise City in which 1.3 trillion won (US$1.15 billion) was invested. However, the group is now facing difficulties as the opening effect of the Paradise City in Incheon fell short of expectations and its public image fell as well due to the sexual harassment scandal. In addition, industry sources inside and out said that the tax audit can also cast a bleak outlook on sales this year. Accordingly, Jeon is expected to struggle with a series of unfavorable factors.
Meanwhile, the Paradise City also caused a controversy over faulty construction as water trickled down from the ceiling of the resort complex on the 6th in less than a month after the opening and customers evacuated from the building.