South Korea Foreigner-Only Casinos Confront Proposed Tourism Levy Adjustments Amid Ongoing Recovery
Quinn Walter · Jul 25, 2026
South Korea Foreigner-Only Casinos Confront Proposed Tourism Levy Adjustments Amid Ongoing Recovery
The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, has issued a warning about a proposed increase in the maximum tourism levy from 10 percent to 15 percent of revenue, noting that such a change could accelerate bankruptcies for operators still recovering from the COVID-19 pandemic while the Ministry of Culture, Sports and Tourism advances plans that also include a five-year license renewal system.
Operators point out that casinos remain the only sector subject to levies calculated on revenue even when facilities operate at a loss, a structure that sets them apart from other tourism-related businesses and adds pressure during periods of uneven visitor numbers and rising operational costs.
Details of the Proposed Changes and Industry Response
The Ministry has put forward the levy adjustment alongside the new licensing framework, and the association responded by highlighting recent collections that reached a record KRW219.5 billion in 2025, a figure 61.7 percent higher than the amount gathered in 2019, according to data tied to the Tourism Promotion and Development Fund.
Those who have tracked the sector note that the revenue-based levy applies regardless of profitability, which means facilities facing low table occupancy or reduced high-roller traffic still contribute to the fund at the full rate, a situation the association argues could compound financial strain if the upper limit rises to 15 percent.
Context Around Collections and Sector Conditions
Figures from 2025 show the fund received its highest casino contributions to date, yet the association maintains that post-pandemic visitor patterns have not returned uniformly across all properties, leaving some operators with thinner margins despite the overall increase in total levies paid.
The five-year license renewal component of the ministry proposal introduces another layer of planning requirements for operators, who must now factor potential levy increases into long-term forecasts while meeting renewal criteria that could affect capital allocation and staffing decisions.
Statements From the Association and Ministry Position
The Korea Casino Association has framed the levy hike as a direct risk to business continuity for members still rebuilding after pandemic-related closures and travel restrictions, emphasizing that the revenue-based calculation applies even during loss-making periods unlike most other tourism levies.
Ministry officials have not detailed the exact timeline for implementation, but the proposal links the levy adjustment to broader tourism development goals funded by the same pool that collected KRW219.5 billion from casinos in 2025, creating a direct connection between the proposed rate change and future project financing.
Implications for Foreigner-Only Operators
Foreign-only casinos operate under rules that restrict local participation, which means their revenue streams depend heavily on international arrivals and high-roller segments that faced prolonged disruption during the pandemic, a factor the association cites when describing the cumulative impact of any levy increase.
Observers note that the combination of higher maximum levies and a structured five-year renewal cycle could influence investment decisions, as operators weigh the cost of compliance against uncertain recovery trajectories in key source markets.
Conclusion
The Korea Casino Association’s warning centers on the specific mechanics of the proposed 15 percent maximum levy and its interaction with existing revenue-based collection rules, while the Ministry of Culture, Sports and Tourism continues to advance both the rate change and the five-year license framework as part of tourism fund management, with 2025 collections providing the latest benchmark for total contributions from the sector.
Further details on the association’s position appear in the statement on proposed tourism levy increase published via Inside Asian Gaming, which outlines the operators’ concerns regarding bankruptcy risks and the unique levy structure applied to casinos.