Cheng Yu-tung, 89, who is the fifth-richest man in Hong Kong with a net worth of $15.5 billion as of this January, made headlines here when he turned his attention to Yeongjongdo Island, located in the Incheon Free Economic Zone, with the aim of developing a casino-based integrated complex.

According to IFEZ, Cheng’s Chow Tai Fook Enterprises signed a letter of intent with Incheon City Mayor Yoo Jeong-bok at the Grand Hyatt Hong Kong on Nov. 16 for a $1 billion casino development project on Yeongjongdo.

It is the first time the Hong Kong-based company has shown any interest in property development projects here, industry watchers said.

CTFE, owned by honorary chairman Cheng, is one of the leading conglomerates in Hong Kong, boasting of a diversified business portfolio, ranging from property development and jewelry sales to communications. 

As a holding company, the company presides over dozens of affiliates, including property developer New World Development and Chow Tai Fook Jewelry, the world’s largest jewelry chain.

“The participation of CTFE in the development of Yeongjongdo will give a green light to the realization of the island’s dream of advancing to (become) a Las Vegas of Asia,’’ Lee Yoo-hyung from IFEZ said.

“Incheon City and IFEZ will fully support CTFE to make a final investment decision in cooperation with the central government.’’

If the Hong Kong developer joins in the development of Yeongjongdo, the island will host the second casino developed here through foreign capital, following the one to be constructed by LOCZ Korea, a joint venture between U.S. casino operator Caesars Entertainment and Indonesian conglomerate Lippo Group.

LOCZ Korea has pushed for the launch of the project since it received a casino business license from the central government on March 18.

As a domestic investor, Paradise Group, a local leisure industry heavyweight, is ahead of the two foreign rivals in the race to develop a casino on Yeongjongdo. The company will break ground on Nov. 20 and will complete the sprawling vacation resort, which will include a foreigners-only casino, by 2017.

The reason “why casino developers, both foreign and domestic, are turning to Yeongjongdo is (because of) the rising number of Chinese visitors who have strong purchasing power,” Lee said.

The Korea Tourism Organization said the number of Chinese tourists hit a record high of 4.68 million in the first nine months of this year, a 50 percent increase from the same period a year ago. The figure was also nearly triple the number of Japanese tourists in the same time span.

Incheon International Airport, considered a gateway to Asia, is located on Yeongjongdo Island. Due to its geographical advantages, the government has long been harboring a vision of turning the island into a casino-driven entertainment city targeting Chinese travelers.

“The ultimate goal of the development is to transform Yeongjongdo into a tour destination, not a transit venue,’’ Lee said.

By Seo Jee-yeon (jyseo@heraldcorp.com)