Business Asia: Stalinist state succumbs to lure of casino

Hong Kong's Emperor Group will invest US$180 million in a new casino-hotel complex in North Korea, saying it is the biggest foreign venture in the famine-stricken Stalinist state.

A company statement said the new Emperor Hotel & Casino would be in the Rajin-Sonbong economic zone. Completion is slated for mid-2000, but first clients will be accepted from the end of next month.

An Emperor spokeswoman said reclusive North Korean leader Kim Jong II has backed the project.

"Exclusive licence was granted by the (North Korean) government to operate casinos within the zone. The project has been fully supported by the leader, Kim Jong II," she said.

"This is very important if you are to operate a casino."

North Korea has been ravaged by famine since 1995. Government figures suggest about 220,000 people have died, but some aid agencies put the number at up to three million.

The company said the Emperor Casino & Hotel would offer a rare opportunity to gamble inside the Stalinist state.

"For those who enjoy gambling, this is a hard-to-come-by experience," it said.

Tourism is tightly controlled in North Korea. Casino clients are expected to come mainly from neighbouring China.

- Reuters