South Korea is one of the fastest-growing racing juristiction's in the world. With
The third-highest average purse in the world (stakes totaling US$170 million for 2,000 races annually) - places Korean Racing Authority (KRA) - behind only Hong Kong and UAE.
Over NZ$11 billion is wagered annually, placing it seventh in the world.
The average stakes in Korea is US$80,000 (NZ$120,000). Maidens race for US$40,000 (NZ$60,000) - Korean racing is massive - yet untapped to the New Zealand racing industry.
Packed Seoul racecourse every Saturday and Sunday. Turnover US$5 million per race.
Two New Zealand-breds had timely wins in Seoul last week, with New Zealand Thoroughbred Marketing (NZTM) hosting the Korean Thoroughbred Breeders' Association (KTBA) this week.
Chugje Hanmadang (Nadeem) came from last to win his maiden in his second start, and Ready Khan (Perfectly Ready) won his class 2 impressively by 5 lengths.
Chugje Hanmadang and Ready Khan are two of only a dozen NZ-breds that are racing in Korea now.
The most successful NZ-bred racing in Korea at the moment is eight-year-old Cheonjae Bogo (Royal Gem), the winner of six of 66 starts. Last year, Cheonjae Bogo finished a creditable midfield (8th) in Korea's richest race, the Grand Prix - a race where the runners of the field are selected by votes from the racing fans - like Japan's Arima Kinen. The Grand Prix (2300m) is also the longest race in Korea.
Cheonjae Bogo (NZ) (Masa Tanaka) winning class1 in Busan last year.
Cheonjae Bogo had a kiwi connection with one of his class 1 (Open handicaps) wins last year, with kiwi-based jockey Masa Tanaka aboard. Tanaka had a very successful stint in Busan riding 101 winners during his two years there. Tanaka is 4th on the all-time list for foreign riders in Korea.
The KTBA were in New Zealand for four days, during which time they were shown stallions and facilities of Waikato Stud, Cambridge Stud, Windsor Park Stud, Cambridge track facilities as well as a tours of NZB Karaka Sales complex and the Ellerslie race course.
Korean Thoroughbred Breeders Association (KTBA) at Cambridge Stud on Tuesday.
"It's been great to have members of the Korean Breeders' Association come to New Zealand and get a feel for our breeding and racing industry,"Andrew Birch - CEO of New Zealand Thoroughbred Marketing.
"From the handful of horses that have been exported to Korea in recent years, New Zealand breds have performed reasonably well, and we have some progressive gallopers there at present.
"Korea has a very healthy racing scene, with massive turnovers ensuring prize money is world class. Although they currently race on sand, which has seen Korean buyers and breeders favour American pedigrees, there is talk of introducing turf racing, which could open the door for more horses from New Zealand to make their way to Korea. While there are still a number of barriers to entry, it has the potential to be a lucrative market for New Zealand," Birch added.
In the 1990's Cambridge trainer John Bell, then the late Ken Browne shipped dozens of horses to Korea. Nowadays, Koreans purchase only about five NZ-breds per year. Compare to Korean's buying power in the US, where over 220 horses are shipped to Korea every year.
New Zealand Bloodstock are looking to change that over the coming years.
"I've always believed that the potential in Korea is huge. They have the population, they love their gambling and the prize money is fantastic. Now that they are starting to open racing up a bit more, along with the fact that a turf track seems a real possibility, Korea could well become a decent export market for New Zealand,"Andrew Seabrook - Director of New Zealand Bloodstock.
The KRA are on a mission to see South Korea recognised on the world racing stage, and have recently implemented new rules like foreign ownership, more foreign trainers, scrapping capping prices for buying foreign-bred colts, and will soon have turf tracks.
KRA have opened up foreign horse ownership just in the past two years. International famed owners like Japan's Yoshida brothers, Australian auction house Inglis, and Barry Irwin, owner/breeder of Kentucky Derby/World Cup winner, Animal Kingdom, are just a few of the foreigners taken up ownership of horses in Korea.
More foreign trainers have recently been licenced. Australian Peter Wolsley made the move to Busan in 2007. Zimbabwean-born Bart Rice and Irishman Thomas Gillespie joined Wolsley on the south-coast track a few years ago.
They will soon be joined by ex-pat kiwi David Miller, who will get his licence approved shortly.
Former Singapore-based Australian trainer Brian Dean has made an immediate impact in Seoul, in the past couple of months. As the first foreign trainer in the capital, Dean has produced four winners from 12 starters - helped by Australian jockey Dean Holland who just finished his four-month contract in Seoul.
Another rule that KRA has changed is the scrapping of foreign-bred purchase limit of US$50,000 for a colt. This will obviously lift the standard of horses in Korea. Only foreign un-raced horses can go to Korea to race.
KRA was recently up-graded to PART II status, equivalent to Singapore; making their stakes graded races more globally recognized to international stud books.
In September, the KRA will host two International races - a new race, the US$855,000 Korea Cup (1800m) and the US$608,000 Korea Cup Sprint (1200m) - formally the Asia Challenge Cup.
Like the past two years, Singapore and the Japan will again send representatives. They will be joined by runners from Hong Kong and maybe Dubai and Europe this year. There are talks to include Australia runners in the future.
Singapore's, New Zealand-bred El Pardino winning the 2014 Asia Challenge Cup
Singapore's polytrack specialist, New Zealand-bred galloper El Padrino (Mr Nancho) won Korea's first international race, the Asia Challenge Cup - two years ago, and was placed second last year - when the race was shortened to 1200m.
While many racing jurisdictions are struggling - Korean racing is booming.
Recently returning from Korea after two years as a form analyst for the Singapore Racing Guide, I have never seen a more progressive racing jurisdiction than South Korea.
With only two thoroughbred racetracks at the moment (Seoul, Busan-Gyeongnam - with another currently being built, due to open in a couple years) the average attendance in Seoul is 30,000 every Saturday and Sunday. Busan's average attendance is 15,000 every Friday and Sunday.
The turnover is about US$5 million per race - US$60 million per day (Friday-Sunday).
There is no internet betting, and only 30 TABs throughout Korea. There is also a maximum bet of 100,000 Korean Won (US$$100).
Korean's are banned from the 20 casinos that are in the country - and there is little sports betting. Only football and baseball and the odd cycle event are bets taken in Korea. Lotto has recently started. So, most gambling in Korea is spent on horse racing.
Singapore started gambling on South Korean racing two years ago. Australia's TAB started a couple of months ago. France's PMU take bets on the Korean Grand Prix race, with future plans to take on more races.
KRA are in the process of building a new track - two hours north of Busan. The new track in Young-Cheon will have turf as well as dirt, and Seoul will replace their sand (inner and outer) tracks with one each of a turf and dirt track by 2019.
Korea breed about 1,500 foals annually from over 110 stallions. The Stud farms are impressive - the KRA-owned Stud farm in Jeju Island, would be on par with any of our top studs. Most stallions are North American dirt ones like Korean Champion Stallion Menifee. (2nd in the 1999 Kentucky Derby and Preakness Stakes). Ecton Park (1999 Jim Dandy Stakes) and Hansen (Breeders' Cup Juvenile) and Chapel Royal are notable stallions. There are also a few turf stallions such as - Hawk Wing, rated 2003 World's Best Thoroughbred.
KRA owned Menifee has won Korean Champion sire for the past four seasons. Last year, Menifee offspring earned US$7.6 million, over US$2 million more than than his closest challenger, Ecton Park. Ecton Park, being privately owned is the highest priced stallion service fee, about US$13,000.
The need for a number of horses to fill the new track, as well the Korean tracks changing to turf - It has the potential to be a lucrative market for New Zealand.
Another incentive for New Zealand breeders' to look at Korea is, a mare can be in-foal here then sent to Korea to have her foal born there. The foal is counted as a Korean-bred which allows the horse to run against other Korean-breds until it has won twice, then going on to race against foreign-bred horses.
With the huge stakes on offer and massive turnover - South Korea will be figuring very prominently in global racing soon.
