Korean brokerage SK Securities said Thursday that that Lotte Tour Development’s Jeju integrated resort, Jeju Dream Tower, has entered a “structural transformation of its fundamental nature” since achieving its first full-year of profit in 2025, adding that the property will continue to benefit from rising visitation to the popular holiday island.
Specifically, analyst Na Seung-doo noted that Jeju itself is unique in Korea’s gaming landscape in that an increase in foreign visitors tends to translate directly into an increase in drop amounts.
Jeju Dream Tower – the tallest building in Jeju at 38 floors or 169 meters high – has been expanding at a rapid rate in recent times, setting multiple new casino sales records and seeing year-on-year increase in casino sales in 27 of the past 28 months.
SK Securities, which has a “Buy” rating on Lotte Tour stock, said in its note that the proportion of total revenue generated by Jeju Dream Tower’s casino has risen to 76% as of 1Q26 and while the hold rate naturally varies, it is now entering a phase of full-scale CapEx recovery.
This, said Na, suggests the company has entered a structural transformation of its fundamental nature.
He added that foreign tourists visiting Jeju Island often have a specific purpose for special spending and while an increase in the number of foreign tourists in mainland regions does not necessarily mean an increase in the drop amount for urban” casinos, his analysis indicates that Jeju Island presents a slightly pattern. That is, an increase in the number of foreign visitors to Jeju Island shows a trend similar to the increase in casino drop amounts.
On Lotte Tour stocks, for which he has set a target price of KRW31,000 (US$20.75), Na said, “There is an atmosphere of positivity considering measures such as the introduction of interim dividends. If shareholder return policies are strengthened, additional potential for stock price appreciation is expected.”
Hann Securities also named Lotte Tour as its top pick among Korean casino operators, stating that the launch of a new rolling chip program at Jeju Dream Tower could add another KRW100 billion (US$66.8 million) in annual revenue.
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