Bain Capital Assumes Control of South Korean Resort from Mohegan Gaming

Boston-based private investment giant Bain Capital has taken operational control of INSPIRE Entertainment Resort, the nearly US$1.7 billion integrated resort (IR) in Korea. The development was previously operated by MGE Korea Limited, a subsidiary of Mohegan Gaming & Entertainment, also based in the US.

The operator change comes after financial hurdles faced by MGE Korea Limited, which defaulted on a substantial loan. The company lost managerial control of the resort when it failed to pay $275 million in loans to multiple lenders in November 2021.

Mounting Financial Woes

Despite INSPIRE being one of South Korea’s significant investments, MGE South Korea has faced financial difficulties since its grand opening in January 2024. By September of last year, the IR had hemorrhaged KRW265.4 billion (US$152.18 million) in net losses despite generating a record revenue of KRW219 billion (US$184.42 million).

Mohegan also failed to clear a US$275 million “Korea Term Loan”, explaining that, at the time, it was confident in its ability to access sufficient cash and liquidity. Additionally, the resort was required to reach financial targets contained within its loan documents.

Business as Usual

Bain Capital may have exercised its right to take over INSPIRE, but it insists the transition will not cause interruptions. The establishment’s employees, guests, and day-to-day operations will continue as usual. In a statement, Bain Capital stated, “Although the management rights have been transferred to Bain Capital, there will be no immediate changes in the executive team.”

The company also emphasized its commitment to establishing a strong collaborative relationship with staff and investors to maintain INSPIRE’s sustainable growth. It added, “As a long-term investor with a strong track record in Korea, Bain Capital will provide full support to enhance INSPIRE’s financial performance, elevate guest experience, and drive sustained growth.”

About INSPIRE

Previously known as Mohegan INSPIRE, INSPIRE Entertainment Resort had a soft launch of non-gaming commercial operations in 2023. It later opened a foreigner-exclusive casino in February 2024.

The establishment spans an expansive 461,661 sq ft, featuring three five-star hotels with 1,275 rooms combined. Other amenities include a 15,000-seat performance arena, a 4,000-capacity convention center, and an indoor waterpark under a glass dome. It also hosts South Korea’s largest foreigner-only casino.