South Korean Casino Operators Raise Alarm Over Proposed Tourism Levy Increase

The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, has issued a warning that a proposed hike in the tourism levy from 10 percent to 15 percent of revenue would accelerate bankruptcies among operators still recovering from COVID-19 disruptions, and the group highlighted how this 50 percent increase compounds existing pressures while the Ministry of Culture, Sports and Tourism moves forward with the plan that already generated a record KRW219.5 billion for the fund in 2025.

Observers note the levy structure stands out because it ties directly to revenue in a way that remains unique among South Korean industries, and association members argue this approach, combined with five-year license renewal cycles plus additional regulatory requirements, places local operators at a disadvantage when competing against markets in Southeast Asia and Japan where tax and licensing frameworks often prove more flexible.

Details of the Proposed Levy Adjustment

The Ministry of Culture, Sports and Tourism has advanced the changes that would lift the tourism levy to 15 percent, and data shows this adjustment arrives at a moment when the fund collected KRW219.5 billion from casinos during 2025, which marked a record high yet operators maintain the extra burden risks undermining recovery trajectories that have only recently stabilized after pandemic-related closures and travel restrictions.

Those familiar with the sector point out that the current 10 percent rate already extracts significant portions of revenue, while the proposed jump would require operators to redirect larger shares toward the tourism fund at a time when visitor numbers from key markets have not fully returned to pre-2020 levels, and this timing creates added strain according to statements from the Korea Casino Association.

Association Statements on Competitiveness

The Korea Casino Association has criticized the revenue-based levy along with five-year license renewals and other regulatory burdens, noting that these elements collectively reduce the ability of South Korean casinos to attract international visitors who now have expanded choices across Southeast Asia and Japan, and the group emphasizes how neighboring jurisdictions have introduced more streamlined approval processes and lower effective tax rates that draw high-roller traffic away from Korean facilities.

Figures from the sector reveal that operators continue to navigate post-COVID recovery, with many properties reporting slower than expected rebounds in foreign guest arrivals, and the association maintains that an additional five percentage points on the levy would push several facilities closer to insolvency by limiting reinvestment in amenities and marketing needed to regain market share.

Experts have observed that the five-year license cycle forces repeated compliance costs and uncertainty, whereas some competing markets offer longer terms or clearer pathways for renewal, and this difference becomes particularly relevant when operators attempt to secure financing or plan long-term expansions amid fluctuating tourism flows.

Financial Context and Record Collections

The tourism fund reached KRW219.5 billion in collections from casinos during 2025, which reflects strong revenue performance in certain segments yet the Korea Casino Association argues the underlying operators face uneven recovery, with some properties still carrying pandemic-era debts while others struggle to restore full staffing and operational capacity after extended shutdowns.

Data indicates the levy applies exclusively to foreigner-only casinos, creating a targeted impact on an industry segment that relies heavily on inbound tourism, and the association has pointed to this structure as another factor that sets South Korea apart from regional peers where casino taxation often incorporates broader incentives for infrastructure development or job creation.

But here's the thing, the proposed increase would require operators to absorb or pass along higher costs at a time when currency fluctuations and regional competition already affect pricing strategies, and the Korea Casino Association has linked these dynamics directly to the risk of further bankruptcies if the changes take effect without corresponding adjustments elsewhere in the regulatory framework.

Regulatory Burdens and Industry Comparisons

Association representatives have noted that five-year license renewals impose recurring administrative and legal expenses that accumulate over time, while additional regulatory requirements around operations and reporting add layers of compliance that operators in Southeast Asia and Japan often avoid through more consolidated oversight systems, and this cumulative effect reduces overall competitiveness according to the group's assessment.

Those who've studied the market point out that Japan’s integrated resort developments and various Southeast Asian casino hubs have attracted substantial foreign investment partly because of clearer long-term licensing and more predictable tax environments, and the Korea Casino Association maintains that South Korean operators need similar stability to retain their position in the broader Asian gaming landscape.

Conclusion

The Korea Casino Association continues to highlight how the proposed tourism levy increase from 10 percent to 15 percent, alongside existing revenue-based taxation, five-year renewals, and other regulatory elements, threatens the financial viability of foreigner-only casinos still emerging from COVID-19 effects, while the record KRW219.5 billion collected in 2025 underscores the fund’s reliance on this sector even as operators warn of accelerated bankruptcy risks and diminished competitiveness against regional alternatives. association statement provides further context on these developments unfolding in July 2026.