Singapore-listed property developer OUE is part of a consortium that has been granted preliminary approval to develop an integrated resort and casino in South Korea.

The developer said on Tuesday that the project will be South Korea's first "internationally branded integrated entertainment resort". Its partners in the consortium are Lippo, controlled by the Riady family that also leads OUE, and Caesars Entertainment Corporation.

The resort will comprise hotel, retail, convention and residential elements as well as a foreigners-only casino, which will be operated by Caesars Entertainment Corporation or one of its affiliated companies.

The 855 billion won (S$1 billion) project is expected to be completed in time for the 2018 Winter Olympics to be held in South Korea, OUE said.

OUE will have a "significant non-controlling interest" in the development and will focus on the hotel component and convention centre.

"OUE's participation in this landmark project - in particular the hotel component and convention centre - reflects our ability to secure unique property development opportunities to drive OUE's future growth and generate value for our shareholders," said OUE's executive chairman Stephen Riady.

"OUE brings to the project its expertise in developing and operating large-scale hospitality, retail and commercial properties."

The developer's shares jumped as much as 6.3 per cent to $2.38 on Tuesday morning after the announcement, but gave back some gains to reach $2.33 as at noon.