Twelve Korean Tourism Groups Oppose Proposed Casino Levy and License Reforms

SEOUL, South Korea – Twelve tourism organizations have urged the government to withdraw proposed changes to casino levies and licensing. The intervention broadens opposition beyond casino operators to hotel, travel and other tourism groups.

The coalition includes the Korea Casino Association, Korea Tourism Association, Korea Hotel Association and Korea Association of Travel Agents, according to Seoul Economic Daily. Its joint statement challenges plans under review by the Ministry of Culture, Sports and Tourism, but the government has not enacted the measures.

Tourism Groups Warn of Wider Financial Pressure

The ministry is considering raising the statutory ceiling for casino contributions to the Tourism Promotion and Development Fund from 10% to 15% of gaming revenue. The broader reform plan also includes five-year casino license renewals and prior approval requirements for certain ownership transfers.

The coalition argued that contributions are calculated from revenue rather than profit, leaving operators liable even when they record operating losses. It said higher payments, combined with individual consumption tax, corporate tax and local taxes, could place additional pressure on smaller casinos and properties still recovering from the pandemic.

The statement expands an industry campaign that previously centered on the Korea Casino Association. Analysts have also raised profit concerns over South Korea’s proposed casino levy cap, although their estimates depend on how the government ultimately structures the new contribution bands.

Ministry Says 15% Would Not Be a Flat Rate

The government has disputed suggestions that the proposal would immediately impose a 15% charge on every casino’s entire revenue. In a July explanation of the proposed levy changes, the ministry said it was considering an additional band for higher-revenue properties rather than replacing the existing system with a single flat rate.

Casino contributions currently operate through a progressive structure and are calculated separately for each property. The ministry has not determined the revenue threshold for a new upper band, the rate that would apply within that band or whether existing contribution levels would also change.

Officials have said the current structure has remained largely unchanged for approximately 30 years while the foreigner-only casino industry has expanded. The ministry argues that an updated contribution system could return more gaming revenue to tourism infrastructure, workforce development and other industry programs.

Five-Year Renewals Raise Investment Concerns

The tourism coalition also opposed replacing the current licensing structure with renewals every five years. It argued that integrated resorts require large initial investments and lengthy recovery periods, making short license terms a potential obstacle to financing, expansion and foreign investment.

The groups pointed to casino and resort development in Macau, Singapore and the Philippines, along with the planned 2030 opening of MGM Osaka in Japan. “If excessive fund increases and short-term renewal regulations hold back the domestic industry, Korea’s tourism industry will not escape a vicious cycle of losing global market leadership and national wealth outflow”, the statement said.

The ministry has not finalized the levy thresholds, renewal criteria or implementation timetable. Further consultation with operators, tourism groups and financial experts is expected before legislation or supporting regulations are submitted or amended, leaving the final cost and licensing effect uncertain.

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