Korea Casino Association Warns of Risks from Tourism Levy Proposal
Mara Wagner · Jul 25, 2026
Korea Casino Association Warns of Risks from Tourism Levy Proposal
The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, issued a statement in July 2026 regarding a proposed increase in the mandatory levy to the Tourism Promotion and Development Fund; the plan would raise the rate from a 10% maximum of revenue to 15%, and association representatives noted that such a change could accelerate financial strain on facilities still recovering from the effects of COVID-19.
Operators pay the levy on gross revenue regardless of whether they report profits or losses, and roughly half of the casinos covered by the association have recorded annual deficits over the past decade according to data cited in the statement; this structure adds to existing tax obligations that include corporate income taxes, value-added taxes, and local levies, while regional competitors in neighboring jurisdictions maintain different contribution frameworks that the association argues affect overall market position.
Details of the Proposed Changes
The proposal under discussion also introduces five-year license renewal cycles along with requirements for prior government approval on major ownership transfers, and these elements combine with the levy adjustment to create new compliance layers for operators who must navigate both revenue-based contributions and administrative hurdles on a recurring basis.
Figures from the Tourism Promotion and Development Fund show that collections reached a record KRW219.5 billion from casinos in 2025, representing a 61.7% increase compared with 2019 levels, and this growth occurred even as individual operators faced uneven recovery trajectories following pandemic-related closures and travel restrictions that reduced visitor volumes for several years.
Financial Pressures on Loss-Making Operators
Association members pointed out that the levy applies uniformly, so facilities operating at a deficit still remit the full percentage of revenue, and this arrangement leaves limited room for reinvestment in property upgrades or marketing efforts aimed at attracting international guests who form the core customer base for these foreigner-only venues.
Multiple operators have reported consecutive years of shortfalls, yet the contribution mechanism does not include adjustments for profitability, and the association highlighted that additional tax burdens compound the effect, reducing the capital available for operational continuity during periods of lower footfall or fluctuating exchange rates that influence travel decisions from key source markets.
Competitiveness Concerns with Regional Markets
Representatives from the association compared the proposed levy structure with frameworks in other Asian gaming jurisdictions, noting that higher mandatory contributions could shift visitor preferences toward locations where operators face lower direct revenue charges and more flexible renewal processes; they argued that such shifts would affect long-term viability for South Korean properties that rely on consistent international arrivals.
The statement emphasized that license renewal terms and ownership approval requirements add procedural timelines that could delay strategic decisions, while the levy increase would apply immediately upon implementation, creating an imbalance between new administrative requirements and ongoing revenue obligations that operators must meet each fiscal period.
Fund Collection Trends and Industry Context
Collection data indicates steady growth in contributions to the Tourism Promotion and Development Fund, with the 2025 total marking the highest figure recorded to date, and this outcome stems from a combination of recovering visitor numbers and the existing 10% levy rate applied across qualifying revenue streams.
Operators continue to channel funds into the tourism initiative while managing separate obligations such as employee-related costs and facility maintenance, and the association’s comments underscore that any rate adjustment would occur against this backdrop of cumulative financial commitments rather than in isolation.
Industry Response and Next Steps
The Korea Casino Association presented its position through a formal statement that outlined potential outcomes for member facilities, and government bodies responsible for tourism policy now hold the details for review before any final decisions on the levy adjustment or accompanying regulatory changes take effect.
Stakeholders within the sector continue to monitor developments around the five-year renewal cycle and ownership approval process, both of which would integrate into existing licensing procedures that currently operate on different timelines depending on the property and its operational history.
Conclusion
The Korea Casino Association’s July 2026 statement brings attention to the combined effects of the proposed levy increase, existing tax structures, and new administrative requirements on South Korea’s foreigner-only casino operators, with specific reference to deficit patterns observed over the past decade and record fund collections achieved in 2025. Observers note that the Tourism Promotion and Development Fund stands to receive higher contributions if the maximum rate rises to 15%, while operators face decisions on how to maintain operations under the updated framework once authorities finalize the policy details. The association’s position centers on the uniform application of the levy regardless of profitability and the competitive positioning relative to other regional markets, providing a factual overview of the issues under discussion without resolution at this stage.