South Korean lawmakers back casino reforms despite criticism
The South Korean government defended a series of proposed casino reforms, saying they are intended to improve the country’s gaming industry with greater transparency and better oversight.
However, debate with casino operators continued as many warned that some of the proposed changes will discourage investment and weaken the country’s competitiveness against other gaming markets in Asia.
Reportedly, a casino policy forum was held in Seoul, where government officials and industry representatives shared sharply different views on the future direction of South Korea’s casino sector.
Among the proposed reforms are plans to increase the maximum Tourism Promotion and Development Fund contribution from 10 per cent to 15 per cent of a casino’s annual gross gaming revenue (GGR), replace the current permanent casino licence system with renewable five-year licences, and require investors to notify the government before any change in a casino’s controlling shareholder.
Lawmaker pushes back on criticism
Opening the forum, government lawmaker Cho rejected opinions that the proposals are designed to tighten control over the industry. As per him, the goal is to create a more transparent regulatory system that would allow the government to provide stronger policy support while encouraging innovation.
“The purpose is not to restrict the casino industry, but to establish a transparent and trusted regulatory system,” he said.
Government officials also argued that South Korea’s casino laws have remained largely unchanged for around three decades, even though the industry has evolved significantly during that time. Lee Myeong-jin, secretary of the Ministry of Culture, Sports and Tourism’s Convergence Tourism Division, said reforms were needed to improve competitiveness while increasing public confidence in the sector.
Although Culture Minister Chae Hwi-young did not attend the event, he said in a written message that casinos remain an important part of South Korea’s tourism industry and that the proposed changes aim to build a fairer and more modern regulatory framework.
The government also believes stronger oversight could support tourism growth and regional economic development. Not everyone at the forum agreed. The Korea Casino Association (KCA) pushed back again, stressing that raising the tourism fund contribution would place an unnecessary financial burden on operators, especially as many businesses continue investing heavily following the pandemic.
Industry worried over revenues
The association estimates that increasing the maximum contribution to 15 per cent could raise annual payments by around KRW76.3 billion ($51.8 million) for three major mainland casino operators. That figure would rise to approximately KRW101.9 billion ($69.2 million) if one operator in Jeju is included. Industry leaders also warned that the reforms come at a time when regional competition is increasing.
Former ministry official Kwon Kyung-sang questioned the return of licence renewals, arguing they had previously been removed because they created uncertainty and increased lobbying. He suggested South Korea should instead consider introducing a dedicated Casino Act, separating casino regulation from the broader Tourism Promotion Act.
Responding to industry concerns, ministry officials replied that the proposed 15 per cent contribution would not automatically apply to every operator. Instead, future revenue bands would be determined through presidential decree after further consultation with the industry.
While no final decisions have been made, the discussions exposed the growing divide between policymakers seeking stronger oversight and casino operators concerned that additional regulation could slow investment just as competition across Asia continues to intensify.
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