South Korea is considering a major increase in the tourism levy imposed on foreigner-only casinos, with authorities reviewing a proposal to raise the maximum contribution rate from 10 per cent to 15 per cent of annual gaming revenue.
The proposal, currently under discussion within the Ministry of Culture, Sports and Tourism, could significantly affect South Korea’s foreigner-only casino sector at a time when casino operators are benefiting from a strong recovery in international tourism and record gaming revenues. If approved, the measure would raise contributions to the Tourism Promotion and Development Fund, which finances tourism infrastructure and other development projects across South Korea.
South Korea reviews higher casino tourism levy
According to GGRAsia, the ministry is examining an amendment that would allow authorities to raise the tourism levy paid by foreigner-only casinos on the Korean mainland to a maximum of 15 per cent of annual gaming revenue. The proposal has not yet been introduced to parliament and remains under review.
The proposal comes as South Korea’s casino industry continues to benefit from a rebound in tourism. Growing visitor arrivals from China, Japan and other key markets have supported higher customer numbers and stronger revenue at foreigner-only casinos.
Investor sentiment turned negative after reports of the potential levy increase emerged. Shares of Paradise Co, Grand Korea Leisure (GKL), Lotte Tour Development, which operates Jeju Dream Tower Casino, and Jeju-related casino operators all fell following the report.
Jeju casinos excluded from proposal
The proposed increase would not immediately apply to Jeju Island’s eight foreigner-only casinos because the island operates under a separate legal framework as a semi-autonomous province. However, local officials have indicated that similar measures could be considered for Jeju in the future should the national amendment be enacted.
Jeju remains one of South Korea’s most important casino destinations, particularly for Chinese visitors, making any future regulatory changes highly significant for operators and investors.
Casino regulation changes under consideration in South Korea
The tourism levy proposal is part of a wider review of South Korea’s casino regulations. Officials are also considering replacing the current system, under which licences are effectively permanent, with a licence renewal framework. Under the proposed model, operators would need to periodically prove they meet regulatory and operational requirements to keep their licences.
Officials are also examining whether government approval should be required for changes in controlling shareholders of casino businesses. The proposal follows several high-profile ownership changes within the sector, including the transfer of control of Inspire Entertainment Resort to Bain Capital and ownership changes involving casino assets on Jeju Island.
Regulators have signalled a desire to strengthen oversight, improve transparency and enhance long-term governance across South Korea’s casino industry.
South Korea casino industry continues strong recovery
The review comes even as South Korea’s casino industry continues to post strong growth. According to the Ministry of Culture, Sports and Tourism, the country’s casinos generated about KRW 3.7 trillion ($2.5 billion) in gross gaming revenue in 2025, up nearly 15 per cent from the previous year and above pre-pandemic levels. Foreigner-only casinos were the main driver of growth, with revenue increasing by more than 21 per cent. Casino visitation also continued to recover, with annual visits nearing six million.
Jeju emerged as one of the country’s strongest gaming markets. The island’s casinos generated more than KRW 646 billion (US$436 million) in gaming revenue during 2025, while visitor numbers rose by almost 38 per cent. Lotte Tour Development’s Jeju Dream Tower accounted for more than 80 per cent of the island’s gaming revenue, cementing its position as the market leader.
Momentum has continued into 2026 as inbound tourism strengthens. Jeju Island’s foreign tourist arrivals rose 21.5 per cent year-on-year to 955,748 in the first five months of 2026, with mainland China remaining the island’s largest source market. The possibility of expanded visa-free travel arrangements for Chinese visitors could provide a further boost to South Korea’s foreigner-only casino sector in the years ahead.
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