Korea Racing Authority, a state-run company responsible for generating a profit of 200 billion won a year ($170 million), has turned to loan to sustain business amid prolonged Covid-19 restrictions and increased payroll.
Korea Racing Authority said Wednesday that it has decided to take out credit loan of 200 billion won this year.
Korea Racing Authority, managing the racehorse breeding industry in Korea, has fallen deep into the red after horse racing games, its main revenue generator, has come to a virtual standstill due to Covid-19 social gathering restrictions. It registered an operating loss of 460 billion won last year, its first red figure in its corporate history of 71 years. It had previously generated 200 billion won profit annually with sales of 7 trillion won from horse racing operation.
Adding to the burden, Korea Racing Authority had to tun temporary workers to permanent payroll under the campaign promise of President Moon Jae-in. The number of its permanent employees jumped to 3,021, nearly tripled from 1,080 in 2018.
By Baek Sang-kyung and Cho Jeehyun
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]