Korea Casino Association challenges new tourism levy, licence fee
South Korea’s casino industry is pushing the government to rethink a series of new regulatory changes, warning that higher financial contributions and a new licencing system could weaken the country’s competitiveness at a time when regional competition is intensifying.
The Korea Casino Association has formally opposed the measures laid out by the Ministry of Culture, Sports and Tourism, arguing that the measures would increase costs for operators, create uncertainty for long-term investments and discourage future growth.
The association is particularly challenging two proposals. The first would increase the maximum contribution that casinos make to the Tourism Promotion and Development Fund from 10 per cent to 15 per cent of gross gaming revenue (GGR). The second would replace South Korea’s long-standing permanent casino licence system with renewable licences valid for five years.
According to the industry body, the proposed levy would place an even greater financial burden on operators because it is calculated using gaming revenue rather than profits.
Casino operators have stressed that they already contribute to the tourism fund under a progressive rate structure, alongside paying corporate tax, local taxes and individual consumption tax. The association argues that increasing the ceiling to 15 per cent will raise operating costs, especially for businesses that are still recovering from the impact of the COVID-19 pandemic.
Casinos in operating losses
The group noted that around half of South Korea’s 18 casino operators have recorded operating losses in most years over the past decade. It estimates that raising the maximum tourism fund contribution would increase annual payments by around KRW 76.3 billion ($49.8 million) for three major mainland casino operators, rising to approximately KRW 101.9 billion ($66.6 million) if one operator in Jeju is included.
The proposed levy has also unsettled investors. The association pointed to trading on 15 July 2026, when casino-related shares declined despite gains in the broader Kospi index, saying the market reaction reflected concerns over the potential impact of the reforms.
The licencing proposal has drawn similar criticism. South Korea has issued casino licences without expiry dates since amendments to the Tourism Promotion Act in 1994, provided operators continue meeting regulatory requirements.
The association argues that introducing five-year licence renewals after more than three decades would create unnecessary uncertainty for businesses planning multi-billion-won investments while also raising concerns about future employment.
Need for new system questioned
It also questioned the need for the new system, saying existing laws already allow authorities to suspend operations or revoke licences in cases of serious regulatory breaches. The proposed changes come as South Korea faces growing competition from neighbouring gaming markets.
Apart from Kangwon Land, which is open to local residents, South Korea’s casinos primarily serve foreign visitors. The association warned that additional regulatory pressure could make the country less attractive to international VIP customers, particularly with MGM Osaka in Japan expected to open in 2030.
The industry also rejected suggestions that its contribution to tourism has remained unchanged over the years. According to the association, casino operators have contributed around KRW 5.23 trillion ($3.53 billion) to the Tourism Promotion and Development Fund since 1994, with payments increasing alongside industry revenues under the existing progressive system.
While the government says that the laws are to generate more revenue and improve oversight of the casino sector, the association believes the current framework already provides sufficient regulatory powers. And so, it has called on authorities to withdraw both proposals and instead introduce policies that encourage investment and support long-term growth of the industry.
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