1 Korea s New Racecourse In line with Racing Reforms PARK YANG TAE Executive Director, Racing Korea Racing Authority
2 CONTENTS 1 2 3 4 SITUATION ANALYSIS DEVELOPMENT STRATEGY NEW RACECOURSE OUR FUTURE
CHALLENGES AHEAD 3
1. Racing Indicators 4 1,950 190.0 1,900 1,850 1,873 1,904 1,939 1,926 180.0 170.0 171.4 175.6 179.5 187.2 1,800 1,810 160.0 160.0 1,750 150.0 1,700 '11 '12 '13 '14 '15 140.0 '11 '12 '13 '14 '15
1. Racing Indicators 5 8,000 20,000 7,900 7,800 7,700 7,600 7,500 19,518 7,786 7,839 16,138 Turnover(Billion KRW) Attendance (Thousand) 15,916 7,703 15,227 7,609 7,769 13,617 '11 '12 '13 '14 '15 11 12 13 14 15 18,000 16,000 14,000 12,000 10,000 Decrease of Attendance is partly due to the implementation of an assigned seatingpolicy at OTBs since 2015.
1. Racing Indicators 6 2010 2014 15% 12% 8% 8% 46% 46% Only In 4 yrs 18% 2014 8% 41% 19% 19% 18% 15% Horse racing is still a market leader, however, market share fell by 5%.
1. Racing Indicators 7 Quality Satisfaction Rate Race Quality Level Urgent Need for Improvement Dissatisfied 30% Neutral 38% Satisfied 32% Low 46% 68% of Racegoers are not satisfied High 12% Mid 42% 29% Integrity Level 27% Racing System 17% Horses performance
2. Situation Analysis 8 Horse Racing = Gambling From a Biased Point of View Racing Fans = Gambling Addict Provocative Reports of Racing No OTBs In My Back Yard Merely a Source of Tax Revenue Outdated, Not Attractive Subject to Regulation
2. Situation Analysis 9 Illegal Betting exceeds KRA s Turnover Difficult to effectively crackdown KRA s Turnover Estimated Turnover of Illegal Bookmaking
2. Situation Analysis 10 $2,525M (Turnover) $3,336M 2010 2014 $1,873M $3,281M $1,253M $1,436M $7,576M $7,646M
2. Situation Analysis 11 Regulations on Public Relations Bet Limit ($100/Race) Outlawed Online Betting Government s Control (NGCC) Turnover Cap Introducing Mandatory Use of Electronic Cards New OTB s Regulations
3. Implications 12 Korean Horse Racing Faces A Variety of Challenges Watershed Strive to Thrive Change & Innovation The Only Way to Survive STRATEGIES Industrybased Racing Customerfriendly Racing Racing Globally
Looking for a breakthrough by Racing Reforms & Globalization 13
1. Development Strategy of Racing in Korea 14 Producing better quality races under stable racing system, To strengthen the Racing fundamentals Customer-based Racing Turning Racing to customerfriendly Sport, To move towards a solid growth path Expanding Int l Races and Simulcastings To raise people s awareness of horse racing as a global sport
2. Industry based Racing Horse Racing Reforms 15 to meet the Global Standards To facilitate horse resources allocation and to create more exciting races Partly introduced in 2014 (4Q, C1~C2) and 2015 in full Designed after a long study of leading racing countries (UK, HK, SIN, AUS, etc.) Changing a Grade Race System to select the Best Horses of the year, according to age sex distance aptitude To create fairer and reasonable competition environments for racehorses
2. Industry based Racing Horse Racing Reforms 16 Gradual Elimination of the price cap of imported horses and geldings Allowing import of already raced horses To foster competition, we Integrated higher class races (C1, C2), which were previously separated by the origin of horses (Domestic, Mixed) Securing excellent stallions and broodmares Enhancing breeding and training facilities and manpower C5 C4 C3 C1 C2 2021 (70%) 2019 (50%) 2017 (32%) 2015 (17%)
2. Industry based Racing Horse Racing Reforms 17 To attract outstanding foreign manpower and invigorate the Korean Racing Industry Owners (2015) Newly Open (2019~) 5% of total owners Strengthening License control for Trainers and Jockeys Fostering talents In the field of breaking Jobs Jockeys, Trainers, Track riders Consultation Track Specialists / Stable Experts
Ⅰ. SITUATION Ⅲ. NEW RACECOURSE Ⅳ. OUR FUTURE Ⅱ. STRATEGIES 2. Industry based Racing Horse Racing Reforms 18
3. Customer Centricity Placing and Promotions 19 Mobile Betting (within the Business site) (Big Data) Response to Customers Wants (OTBs) Hard Ticket Policy Legalizing Online Betting (CRM) Effectively Managing Customers (Racecourses) Grandstand Renovation
3. Customer Centricity Placing and Promotions 20 Customer Experience Management Public Customer Satisfaction Index PEs Average KRA s Earning Customer Friendly Strategies 2010 KRA s Earning Average among public enterprises F&B Improvement MOT Management 2014 Among 18 Public Enterprises
4. Globalization - Upgrading Int l Races 21 1,200m, Sand, 3yo, Set Weight 1 st Watts Village (KOR) 1:12.3 2 nd Miyasan Cutie (JPN) Neck 3 rd Kogyo Douglas (JPN) 1 Aug. 30 th 2015, Seoul, KOR 1,200m, Sand, 3yo, Set Weight 1 st Choegang Schiller (KOR) 1:11.0 2 nd El Padrino (SIN) 2 3 rd Cheongu (KOR) 1¾
4. Globalization - Upgrading Int l Races 22 September 11, 2016 @ Seoul Racecourse Race Condition KOREA Cup (KGI) KOREA Sprint (KGI) Race Dist. 1,800m (9f) 1,200m (6f) Purse KRW 1B ( $0.85M) KRW 700M ( $0.6M) # of Runners 16 Runners (8 KOR-Trained, 8 Foreign-Trained) Invited Countries 6 Countries (JPN, SIN, UAE, HK, EU, US, etc. ) * Nationality of Participants are subject to change according to the establishment of Quarantine Protocols (Protocol Established Countries as of 2015 : JPN, SIN, UAE, USA) (Under progress : HK, EU)
4. Globalization - Upgrading Int l Races 23 Asia Challenge Cup KOR Cup (USD1M) KOR Sprint(USD 0.7M) Inviting 6 Countries KOR Cup/Sprint (Inviting 6 Countries) Int'l GⅢ KOR Cup/Sprint Int'l GⅡ 2022~ local GⅢ 2018 ~ 2016 ~ 2015
4. Globalization Enlarging Simulcasting 24 As-Is To-Be Extension of Telecasting Singapore France Malaysia Korea Cup Participating Countries EXPORT RACES IMPORT RACES EXPORT RACES IMPORT RACES Strictly Banned By Law After Law Revision (Currently in the works)
1. Horse Themed Park rather than merely a racecourse 2. Racing is one of the varieties in a Themed Park 25
1. New Racecourse Profile 26 Location : Yeongcheon, Gyeongsangbuk-do * neighbored to Daegu, the 4 th largest city in Korea Gross Area : 1,475,000 m2 * Larger than Seoul Racecourse (1,150,000 m2 ), Busan (1,243,000 m2 ) Construction Period : 4yrs (Jan. 2016 ~ Dec. 2019) * Planned to open in 2020 Yeongcheon Concept : UNPLUGGED HORSE UTOPIA JEJU
1. New Racecourse Profile 27 A Grandstand accommodating 10,000 people Two Race Tracks (Sand) - Outer Track : 1,706m 24m - Inner Track : 1,518m 24m Stable : 20 buildings 480 stalls Training Facilities including Indoor circular training track & Outdoor training track Horse-Themed Park Amusement facilities for Family Visitors
2. Racing Operation Plan 28 SEOUL BUSAN YEONG - CHON Integrating Resources (Horses, Horsemen) between BUSAN and Yeongcheon, and Operating under the same system Racemeetings at Yeongcheon on every SAT & SUN, at BUSAN on FRI (SEOUL on SAT &SUN) # of RACES SEOUL BUSAN YEONGCHEON TOTAL Before Opening 1,104 816-1920 After Opening 912 384 672 1968 Change 192 432 672 48 * All the plans are tentative and may be changed in the future
2. Racing Operation Plan 29 (Seoul) 320 Racehorses from Seoul will be transferred to the New Racecourse (Busan) Maintaining the current number of racehorses, and entering races at both Busanand Yeongcheon (Yeongcheon) Operating an average of 320 horses and entering races at both Busanand Yeongcheon # of RACE HORSES SEOUL BUSAN Yeongcheon TOTAL Before Opening 1,420 980-2,400 After Opening 1,100 980 320 2,400 Change 320-320 - * Seoul & Busan racecourses have been too busy and overcrowded, which can be eased when the new racecourse open.
3. Construction Time Table 30 Step 5 Step 1 Public Collection of ideas Step 2 Int l Design Contest ~ Feb. 2016 Step 3 Design Mar. 2016 ~ May 2017 Step 4 Construction Jun. 2017 ~ Jun. 2020 Opening Jul. 2020 Jan. ~ Apr. 2015
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Picture of Horse Racing In Korea 32 Stable Racing System meeting the global standards Better Quality Racehorses Rebuilding Trust With Customers Successful launch of New Racecourse Acceleration of Globalization & Int l Races Securing Sustainable Growth of Horse Racing Business in Korea Contributing to the Progress of Horse Racing Industry in the World
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