South Korea Casino Operators Raise Alarm Over Proposed Tourism Levy Hike
The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, issued a formal warning in July 2026 regarding a proposed increase in the mandatory tourism levy; the change would raise the rate from a 10% maximum to 15% of revenue, and the group stated this adjustment would hasten the bankruptcy of casinos still recovering from the COVID-19 pandemic.
Association representatives emphasized that casinos operate under a unique tax structure where levies apply directly to revenue even during periods when facilities run at a loss, creating sustained financial pressure amid ongoing recovery efforts.
Details of the Proposed Changes
Under the current framework the tourism levy caps at 10% of revenue, yet the new proposal seeks to lift that ceiling to 15%, a shift the association argues would compound existing challenges for operators who have yet to return to pre-pandemic performance levels; the group noted that this revenue-based taxation model differs from standard corporate tax approaches applied to other industries, since payments continue regardless of profitability.
Record Tourism Fund Collections Highlighted
The Korea Casino Association pointed to record tourism fund collections that reached KRW219.5 billion in 2025, representing a 61.7% increase compared to 2019 figures, as evidence that the existing levy structure already generates substantial revenue; they argued that further increases risk undermining the very operators contributing to those collections while the sector works to stabilize after pandemic-related closures and travel restrictions.
Operators have faced prolonged recovery timelines because international visitor numbers took years to rebound, and many facilities continue to manage elevated operational costs alongside reduced margins.
Additional Regulatory Proposals Under Scrutiny
Besides the levy adjustment, the association criticized related proposals that include five-year license renewal cycles and stricter ownership rules, stating these measures would harm competitiveness against regional rivals in markets such as Singapore, Macau, and the Philippines where regulatory environments differ; the group maintained that shorter renewal periods and tighter ownership restrictions add administrative burdens and uncertainty for investors considering long-term commitments in South Korea’s casino sector.
Those who have studied the regional landscape note that competitor jurisdictions often provide more flexible licensing terms and ownership structures, allowing operators greater agility in responding to market shifts.
Context of Post-Pandemic Recovery
Casinos in South Korea that cater exclusively to foreign visitors began reopening in phases after 2020, yet full restoration of revenue streams has remained gradual because of lingering effects from travel bans and economic uncertainty; the association’s warning comes at a time when the broader tourism sector has reported stronger fund inflows, yet individual casino operators continue to navigate uneven recovery patterns across properties.
Data from 2025 shows the tourism fund reached its highest level on record, yet the Korea Casino Association maintains that revenue-based taxation without loss offsets leaves little room for operators to absorb additional percentage increases without risking insolvency.
Competitive Position in Asia
Regional competition remains a central concern for the association, which referenced how neighboring markets maintain different tax and licensing frameworks that attract both operators and high-value visitors; the proposed changes, according to the group, would place South Korean facilities at a disadvantage precisely when international tourism has started to stabilize.
One case referenced in industry discussions involves operators who expanded during earlier growth periods only to face extended downturns, illustrating how fixed revenue levies can accelerate financial strain during prolonged recovery phases.
Conclusion
The Korea Casino Association’s July 2026 statement outlines specific risks tied to the proposed levy increase, five-year license renewals, and ownership restrictions, while citing the record KRW219.5 billion tourism fund collection as context for their position; the group’s comments focus on how these measures could affect operators taxed on revenue regardless of profitability and could reduce competitiveness against other Asian gaming destinations.