Korean Tourism Organizations Urge Withdrawal of Casino Levy Reform Proposal

Twelve Korean tourism-linked organizations including the Korea Casino Association, Korea Tourism Association, Korea Hotel Association, adn Korea Association of Travel Agents released a joint statement on August 3, 2026 calling on South Korea’s Ministry of Culture, Sports and Tourism to drop a proposed overhaul of the casino sector, and the groups highlighted several specific concerns about how the changes would affect operators still working through post-pandemic recovery.

Details of the Proposed Reforms

The plan under discussion would increase the levy applied to foreigner-only casino operators from the current 10 percent of gaming revenue to 15 percent, which represents a 50 percent rise in that contribution rate, while it also introduces five-year license renewal cycles along with additional regulatory requirements that the associations say would compound operational pressures across the industry.

Those organizations argue the combined effect of these measures would push several operators toward bankruptcy because many facilities continue to manage reduced visitor numbers and elevated costs that emerged during the COVID-19 period, and they point to internal projections showing profit reductions ranging between 20 and 37 percent once the new levy structure takes hold.

Arguments Presented in the Joint Statement

The joint statement emphasizes that higher levies would directly reduce funds available for reinvestment in integrated resort projects that have been positioned as key drivers for long-term tourism growth, and the groups note that such projects require substantial capital commitments over multiple years to reach completion and begin generating returns for surrounding communities.

Observers note the associations compared South Korea’s position with established markets such as Macau, Singapore, the Philippines, and Japan where regulatory frameworks allow operators more flexibility in revenue allocation, and they contend that an increase in the levy would place domestic facilities at a competitive disadvantage when attracting international visitors who have multiple destination options in the region.

Impact on Tourism Competitiveness

Industry data cited by the organizations indicates that integrated resort developments rely on stable profit margins to secure financing and meet construction timelines, whereas a sudden 50 percent levy increase would force adjustments in project scope or delay timelines that have already been communicated to investors and government planners, and the statement warns this could stall momentum built over the past several years toward positioning South Korea as a regional tourism hub.

Those who have studied the sector point out that foreigner-only casinos contribute to tourism funds through existing levies, and any reduction in operator viability would lower overall contributions to those funds over time even if the per-operator rate rises, because fewer viable operators would remain to generate the underlying revenue, and the associations requested that the ministry conduct further economic modeling before advancing the proposal.

Context of Post-Pandemic Recovery

Casino operators in South Korea have reported gradual increases in foreign visitor arrivals since border restrictions lifted, yet many properties still operate below pre-2020 revenue levels while managing higher labor and supply costs, and the joint statement frames the proposed changes as arriving at a moment when stabilization rather than additional financial burdens remains the priority for the sector.

Representatives from the Korea Casino Association and affiliated bodies have scheduled meetings with ministry officials to present detailed financial models that illustrate the projected profit compression and its downstream effects on employment and supplier contracts, and they have requested an extension of the consultation period to allow input from a broader range of stakeholders before any final decisions are made.

Conclusion

The August 3, 2026 joint statement marks a coordinated effort by twelve tourism organizations to influence the direction of casino policy in South Korea, and the groups have outlined clear financial and competitive risks they associate with the proposed levy increase and licensing adjustments, while the Ministry of Culture, Sports and Tourism has not yet issued a formal response to the request for withdrawal of the reform package.