Private equity firm Bain Capital has taken control of Inspire Entertainment Resort on Yeongjong Island, the largest integrated resort in South Korea. This follows financial difficulties faced by Mohegan Gaming & Entertainment (MGE), whose South Korean subsidiary defaulted on a substantial loan.
Bain Capital confirmed on Monday for The Korean Economic Daily that it had obtained a controlling interest in MGE Korea, the South Korean branch of U.S.-based Mohegan Gaming & Entertainment. MGE Korea previously held full ownership of the luxury resort, but after defaulting on a $275 million loan from multiple lenders in November 2021, it lost management control.
The resort, situated near Incheon International Airport, spans 461,661 square meters—comparable to 64 soccer fields. It features three five-star hotels with a combined total of 1,275 rooms, a 15,000-seat performance arena, an indoor water park under a glass dome, and a large-scale convention center capable of hosting up to 4,000 guests. Additionally, Inspire is the country’s largest foreigner-exclusive casino.
Financial Struggles and Bain Capital’s Intervention
Despite an investment of $1.6 billion, MGE Korea has struggled financially since the resort’s grand opening in January last year. By September, Inspire had recorded revenue of KRW 219 billion ($152 million) but suffered a net loss of KRW 265.4 billion ($152 million). In its most recent fiscal year (October 2023–September 2024), the resort posted an operating loss of KRW 156.4 billion ($108 million).
Bain Capital exercised its rights to take control of MGE Korea after the parent company was unable to meet its loan obligations. Consequently, the resort’s official name has been changed from Mohegan Inspire Entertainment Resort to Inspire Entertainment Resort.
During Mohegan’s fourth-quarter 2024 earnings call, the company’s COO, Ari Glazer, acknowledged the transition, stating, “Following the earnings release this morning and just a few hours ago,…