South Korea has granted a license to a consortium led by U.S. casino operator Mohegan Sun to build an integrated resort project in Incheon, just west of Seoul.

Partnering with South Korean chemicals maker KCC Corp., Mohegan plans to invest US$1.24 billion to build a casino, convention venues, a luxury hotel, shopping areas, and a K-pop entertainment arena.

The Ministry of Culture, Sports and Tourism said the addition of another casino resort, along with the two already under construction, will be a boost for tourism.

Incheon, which is also home to the main airport, is a specially-designated development zone with several casino proposals targeted at foreigners. One of the resorts includes a joint venture headed by Las Vegas’ Caesars Entertainment Corp.

“We will closely monitor the project to help support the (Mohegan consortium) in building a world-class integrated resort,” the ministry said.

“It is expected to boost the competitiveness of the South Korean tourism industry with various tourism infrastructure, such as a K-pop arena, a theme park and a convention center.”

Incheon is currently constructing a second passenger terminal with plans to to increase capacity to a projected 62 million annual passengers by 2017.

Tourism will be crucial to the success. By law, South Korean citizens are allowed to gamble in only one of the country’s 17 casinos currently operating there. Holders of a Korean passport will not be permitted in the new casinos being built at Incheon.

The primary target will be tourists from northern Chinese cities who might opt for the shorter flight to Korea than to Macau.

Mohegan Sun first Asia venture

For the Connecticut-based Native American-run Mohegan Sun, this marks its first casino resortoutside of North America as it looks to cash in on the growing gaming market in Asia.

The consortium, which has dubbed itself Inspire Integrated Resort for this project, will break ground by early 2017 and begin operations in early 2020, representative director Kang Yeon-sup told Reuters.