Unfavorable factors
The Paradise Group (Chairman, Jeon Phillip) is suffering from consecutive negative factors. Sales of its casinos, a major cash cow for the group, have been on decline for three months running.
As if to add oil to the fire, Paradise Sega sammy, a subsidiary of the Paradise Group that has been involved in the complex resort business since April, was hit hard by an internal sexual harassment case which gave rise to the resignation of those involved and the replacement of the CEO.
Recently, according to the casino industry, sales of Paradise's four casinos -- Walker Hill, Jeju Grand, Busan, and Incheon -- decreased 24.06% on average over the past three months year on year.
This year, their cumulative sales also decreased year on year for the fifth straight months until last month. Paradise posted 204.9 billion won in total sales in the casino business from the beginning of this year to last month, down 19.2% from the same period of last year. The casino business accounted for 86.8% of the group’s total sales based on consolidated financial statements last year.
In addition to the sales decrease, an employee sexual harassment case at Paradise Saga sammy, an affiliate of the Paradise Group, broke out in one month after the affiliate entered the complex resort business, further aggravating the situation and dialing up the group leadership’s discomfiture.
It is said that the suspect is a boss of a department and most of the victims were young employees who just started out. The problem was that issues were officially raised in connection with this case, finally, the victim left the company, putting an end to the case.
Since the case surfaced, Jung Yeon-soo, president of Paradise Saga sammy has resigned and Park Byeong-ryong, CEO of Paradise, has doubled as president of Paradise Saga sammy.