South Korea Casino Operators Raise Concerns Over Proposed Tourism Levy Adjustment
The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, has issued a statement warning that a proposed increase in the tourism levy from 10 percent to 15 percent of revenue would accelerate financial strain for businesses still recovering from the effects of COVID-19, and the group points to additional regulatory factors that it says place local operators at a disadvantage compared with facilities in Southeast Asia and Japan.
The Ministry of Culture, Sports and Tourism put forward the changes, which would apply to the existing revenue-based levy structure, while the fund collected a record KRW219.5 billion from casinos in 2025 according to official figures released earlier this year.
Details of the Proposed Levy Change
Under the current system the tourism levy stands at 10 percent of revenue, yet the ministry’s plan would raise that rate to 15 percent, representing a 50 percent increase in the amount operators must contribute, and the association argues this adjustment arrives at a time when many facilities continue to rebuild visitor numbers and stabilize cash flow following pandemic-related closures and travel restrictions.
Observers note that the levy applies specifically to casino revenue, a structure the association describes as unique among South Korean industries, and the group has highlighted how this targeted approach combines with five-year license renewal cycles to create ongoing compliance costs that do not exist in the same form for competing destinations.
Regulatory Burdens and Competitiveness Issues
The association’s statement outlines several regulatory elements it believes affect long-term viability, including the revenue-based levy itself, the relatively short five-year license period that requires repeated applications and reviews, and other operational requirements that add to administrative overhead, and these factors together are presented as reducing the ability of South Korean casinos to attract international visitors who have growing options across the region.
Regional comparisons appear throughout the statement, with the association noting that operators in Southeast Asia and Japan operate under different tax and licensing frameworks that allow more flexible investment in facilities and marketing, whereas the combination of the proposed levy hike and existing rules in South Korea would limit similar expenditures, and the group connects these points to broader concerns about market share in the Asian tourism sector.
Record Collection Figures and Timing
The fund’s record collection of KRW219.5 billion in 2025 provides context for the ministry’s proposal, showing that casino contributions reached a high point even as operators worked through post-pandemic recovery, and the association uses this data to argue that the current 10 percent rate already generates substantial revenue without requiring an increase that could push marginal facilities toward insolvency.
Those who have followed the industry note that the timing of the proposal in July 2026 coincides with ongoing efforts by operators to restore pre-pandemic performance levels, while visitor arrivals from key source markets remain uneven, and the association’s warning ties the levy adjustment directly to the risk of accelerated bankruptcies if the higher rate takes effect before full stabilization occurs.
Association Position on Industry Impact
The Korea Casino Association frames its response around the combined effect of the levy increase and longstanding regulatory features, stating that the revenue-based model and five-year renewals create cumulative pressure not faced by operators elsewhere, and it presents these elements as collectively reducing competitiveness in a market where international visitors can choose among multiple jurisdictions with varying cost structures.
According to the association statement, the proposed changes would affect all represented operators, with smaller or newer facilities facing the greatest exposure because they have had less time to accumulate reserves during the recovery period, and the group emphasizes that the levy applies uniformly regardless of individual financial circumstances.
Conclusion
The Korea Casino Association’s warning centers on the proposed tourism levy adjustment from 10 percent to 15 percent of revenue together with existing regulatory requirements, and the statement connects these factors to potential bankruptcies for operators still emerging from COVID-19 impacts while citing the record KRW219.5 billion collection in 2025 and comparisons with regulatory environments in Southeast Asia and Japan, and the Ministry of Culture, Sports and Tourism’s proposal remains under discussion as of July 2026.