Korea Casino Association Highlights Risks From Proposed Tourism Levy Adjustment
Freya Frank · Jul 25, 2026
Korea Casino Association Highlights Risks From Proposed Tourism Levy Adjustment
The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, issued a warning in July 2026 about a proposed increase in the maximum tourism levy from 10 percent to 15 percent of revenue, noting that such a change could accelerate bankruptcy risks 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.
Observers note the association emphasized that casinos remain the only sector subject to levies calculated on revenue even during periods of financial loss, a structure that stands apart from standard tax approaches applied to other industries and creates ongoing pressure when visitor numbers fluctuate after global health disruptions.
Details of the Proposed Changes
The Ministry of Culture, Sports and Tourism put forward the levy adjustment alongside the introduction of five-year license renewals, measures that would alter how operators manage long-term planning and revenue allocation at a time when many facilities continue to rebuild visitor traffic and operational stability following pandemic-related closures and restrictions.
Data from the Tourism Promotion and Development Fund shows it collected a record KRW219.5 billion from casinos in 2025, representing a 61.7 percent increase compared with 2019 figures, which highlights the significant contribution already made by the sector under existing levy rates before any potential hike takes effect.
Association's Position on Revenue-Based Levies
The Korea Casino Association pointed out that the current system imposes the levy directly on gross revenue regardless of whether an operator reports a profit or loss in a given period, a practice that differs from most other business sectors where taxation typically applies after expenses and results in more balanced obligations during downturns or recovery phases.
Those who have examined the proposal indicate the association views the combined effects of the levy increase and the new licensing timeline as factors that could compound financial strain, particularly for smaller or mid-sized foreigner-only facilities that have not yet returned to pre-pandemic revenue levels despite the strong fund collections recorded in 2025.
Financial Context and Recovery Challenges
Figures released alongside the association’s statement reveal that the Tourism Promotion and Development Fund reached its highest-ever casino-derived total in 2025, yet operators continue to navigate uneven recovery patterns where some properties have restored international visitor flows while others face persistent shortfalls in high-value gaming activity that traditionally supports overall profitability.
The association’s warning ties these recovery dynamics directly to the proposed levy structure, explaining that applying the tax to revenue rather than profit means facilities operating at a loss still remit payments, which reduces available capital for marketing, staff retention, and infrastructure upgrades needed to attract tourists back in sufficient numbers.
Broader Regulatory Framework
Under the Ministry’s outlined approach, the shift to five-year license renewals would introduce a fixed review cycle that operators must navigate while adjusting to higher levy obligations, creating a scenario where compliance costs and revenue-based payments coincide during the same multi-year window and potentially limit flexibility for businesses managing post-pandemic balance sheets.
According to the statement on proposed tourism levy increase, the Korea Casino Association argues that maintaining the current 10 percent ceiling allows operators more room to stabilize before any upward adjustment, especially given the sector’s unique position of contributing substantially to the Tourism Promotion and Development Fund even in challenging years.
Potential Sector-Wide Implications
Analysts tracking the foreigner-only casino segment note that the combination of revenue-based levies and proposed increases could influence decisions around expansion, staffing, and marketing budgets, with some operators potentially delaying capital investments until clarity emerges on final levy rates and the practical effects of the five-year licensing cycle.
The record KRW219.5 billion collection in 2025 demonstrates the scale of existing contributions, yet the association maintains that further increases risk tipping marginal operations into insolvency before full recovery takes hold across all properties in the network.
Conclusion
The Korea Casino Association’s July 2026 warning centers on the interplay between the proposed levy hike to 15 percent of revenue, the existing revenue-based collection method, and the added layer of five-year license renewals, all set against a backdrop where the Tourism Promotion and Development Fund already received KRW219.5 billion from casinos in 2025, a 61.7 percent rise from 2019 levels, underscoring both teh sector’s importance and its ongoing recovery needs.