Korea Casino Association Raises Concerns Over Proposed Tourism Levy Increase

The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, has issued a warning about a proposed hike in the tourism levy that would lift the rate from 10 percent to 15 percent of revenue. Observers note that this adjustment forms part of a broader package put forward by the Ministry of Culture, Sports and Tourism, and the association argues the change could accelerate bankruptcies among properties still working through the aftermath of COVID-19 disruptions. The ministry’s proposal also outlines five-year license renewal cycles along with tighter ownership regulations, elements that the association says compound existing financial pressures on the sector. Data from recent years shows the industry operates under a unique tax structure where levies apply directly to revenue even when operators record losses, a framework that has contributed to roughly half of the member casinos posting annual deficits across the past decade.

Details of the Proposed Changes and Industry Response

According to the association’s statement released in late July 2026, the revenue-based taxation model stands apart from standard corporate profit taxes applied elsewhere, leaving little room for recovery during low-revenue periods. The group points to record tourism fund collections reaching KRW219.5 billion in 2025 as evidence that current rates already deliver substantial contributions, yet the planned increase would further strain operators facing ongoing post-pandemic recovery costs.

Ministry officials have framed the five-year renewal period and stricter ownership rules as measures to enhance regulatory oversight and long-term stability within the foreigner-only casino segment. Those who have reviewed the draft indicate the changes aim to align licensing practices with evolving tourism policy goals while maintaining the sector’s focus on international visitors.

Financial Pressures Highlighted by the Association

Figures released alongside the warning reveal that multiple operators have operated at a deficit for consecutive years, a pattern the association links directly to the combination of revenue-based levies and fluctuating visitor numbers. The group notes that even during periods of strong collections for the tourism fund, individual properties continue to absorb losses because the levy calculation does not account for operational costs or profitability.

Industry representatives have emphasized that the proposed 15 percent rate would arrive while many casinos remain engaged in rebuilding visitor traffic and infrastructure investments delayed by earlier restrictions. The association’s position highlights that additional financial burdens could reduce the number of viable operators, potentially affecting the overall contribution the sector makes to national tourism initiatives.

Context of License Renewals and Ownership Rules

The ministry’s inclusion of five-year license terms represents a shift from previous arrangements, with regulators stating the cycle will allow more frequent reviews of compliance and performance metrics. Stricter ownership provisions are described in the proposal as safeguards against concentrated control, requiring clearer disclosure of major stakeholders and their financial standing.

Those familiar with the regulatory timeline expect discussions between the ministry and the association to continue through the remainder of 2026, as both sides examine how the combined levy increase, renewal schedule, and ownership requirements would interact with existing operational realities. The association has requested further modeling of revenue impacts before any final decisions move forward.

Record Tourism Fund Collections in 2025

Collections for the tourism fund reached an all-time high of KRW219.5 billion in 2025, a total the association cites when arguing that current levy levels already meet or exceed policy objectives. This figure reflects contributions from the foreigner-only casino segment under the existing 10 percent rate, providing context for the group’s claim that an additional five-percentage-point increase lacks justification based on fund performance alone.

Ministry documentation shows the tourism fund supports various national initiatives, yet the association maintains that the revenue source remains sensitive to operator viability. Any reduction in the number of active casinos, the group contends, could eventually affect total collections despite the higher rate.

Conclusion

The Korea Casino Association’s warning centers on the combined effects of the proposed 15 percent tourism levy, five-year license renewals, and stricter ownership rules on operators still recovering from COVID-19 impacts. The statement draws on a decade of deficit data and the record KRW219.5 billion collected in 2025 to illustrate the sector’s current position. Discussions between the association and the Ministry of Culture, Sports and Tourism continue as stakeholders assess the full scope of the proposed adjustments.