Korea Casino Association Issues Warning on Proposed Tourism Levy Increase for Foreigner-Only Casinos

The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, has issued a formal warning that the Ministry of Culture, Sports and Tourism’s proposal to raise the tourism levy from 10% to 15% of revenue would accelerate bankruptcies among operators still recovering from the effects of COVID-19. The proposed change represents a 50% increase in the levy rate, and the association points out that this adjustment arrives at a time when many facilities continue to rebuild visitor numbers and stabilize operations after years of pandemic-related closures adn restrictions. Observers note that the revenue-based levy structure remains unique among South Korean industries, and the group has criticized this approach alongside five-year license renewal cycles and additional regulatory requirements that they argue place domestic operators at a disadvantage compared with competitors in Southeast Asia and Japan. The Ministry of Culture, Sports and Tourism has advanced the changes as part of broader tourism funding measures, while data from 2025 shows the fund collected a record KRW219.5 billion from casino operators during that period.

Details of the Proposed Levy Adjustment and Industry Response

The association’s statement highlights that the current 10% levy already extracts a significant portion of revenue from operators who cater exclusively to international visitors, and the jump to 15% would further strain margins that have only recently begun to recover. Those who have studied the sector’s post-pandemic performance point out that many casinos experienced sharp declines in foreign tourist arrivals between 2020 and 2022, followed by gradual rebounds that have not yet returned to pre-pandemic levels in all locations.

Industry representatives argue that the combination of the proposed levy hike, shorter license terms requiring frequent renewals, and overlapping compliance obligations creates cumulative pressure that reduces the ability to invest in facilities and marketing. They note that neighboring markets in Southeast Asia and Japan have implemented different tax and licensing frameworks that allow operators greater flexibility in pricing and promotions aimed at international guests.

Record Collection Figures from 2025 and Ministry Position

Figures released for 2025 indicate the tourism fund received KRW219.5 billion from casino contributions, marking the highest amount recorded to date and reflecting the partial rebound in foreign visitor traffic. The Ministry of Culture, Sports and Tourism has presented the levy adjustment as a means to secure additional resources for tourism development projects, although the association contends that the existing framework already supplies substantial revenue without the need for an immediate rate increase.

Those familiar with the regulatory environment observe that the five-year license renewal cycle requires operators to undergo repeated evaluations and incur associated costs, which adds another layer of financial and administrative burden. The association has linked these factors to reduced competitiveness, noting that operators in other regional jurisdictions often benefit from longer license periods and tax structures that scale differently with revenue.

Broader Regulatory Context and Competitiveness Concerns

The Korea Casino Association has emphasized that the revenue-based levy applies specifically to the foreigner-only segment and does not mirror taxation models used in other South Korean industries. This distinction, combined with the proposed rate increase, forms the core of their argument that current and planned policies hinder the sector’s ability to attract international capital and tourists. Operators point to established casino destinations in Southeast Asia and Japan where regulatory environments support more aggressive expansion and promotional strategies aimed at the same visitor demographic.

Data from the 2025 collection period shows strong contribution levels even as operators navigate ongoing recovery, yet the association maintains that further increases risk reversing recent gains. The Ministry continues to oversee licensing and funding allocation, while the association’s July 2026 statement calls for reconsideration of the levy structure and related regulatory requirements to preserve operational viability across the foreigner-only casino network.

Conclusion

The Korea Casino Association’s warning centers on the direct financial impact of the proposed tourism levy increase from 10% to 15%, alongside ongoing concerns about license renewal frequency and regulatory load. The record KRW219.5 billion collected in 2025 provides context for the scale of current contributions, while the Ministry’s proposal reflects efforts to expand tourism funding. Industry observers continue to track how these policy developments will affect operator stability and regional competitiveness in the months ahead. the association's statement outlines specific points raised in response to the Ministry’s plans.