Korea Casino Association Highlights Risks from Proposed Tourism Levy Adjustment
Finley Sullivan · 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, has issued a warning about a proposed increase in the tourism levy that would raise the rate from 10% to 15% of revenue, and observers note this adjustment represents a 50% hike that could accelerate financial strain for operators still recovering from the effects of COVID-19.
Details of the Proposed Levy Change
The Ministry of Culture, Sports and Tourism has put forward the changes, and the fund collected a record KRW219.5 billion from casinos in 2025 while the association points out that this revenue-based levy stands unique among industries in the country, and the group has also raised issues with five-year license renewals along with other regulatory requirements that they argue reduce competitiveness when compared to markets in Southeast Asia and Japan.
Data from the proposal shows the higher levy would apply directly to operator revenue, and those who have reviewed the details indicate that recovery timelines could stretch further because many facilities continue to rebuild visitor numbers and operational capacity after pandemic-related closures.
Broader Regulatory Concerns Raised by Operators
The association criticized multiple aspects of the current framework, including the revenue-based structure of the levy that does not appear in other sectors, the relatively short five-year cycle for license renewals that creates ongoing uncertainty, and additional regulatory burdens that increase compliance costs without corresponding benefits to market position.
According to the statement, these elements together place South Korean operators at a disadvantage against regional competitors who operate under different tax and licensing models, and the group has linked these factors to potential bankruptcy risks if the levy adjustment moves forward without modifications.
Context of Post-COVID Recovery and Record Collections
Operators have worked to restore business levels since the pandemic, yet the association maintains that the timing of the proposed increase coincides with ongoing financial pressures, and the record KRW219.5 billion collected in 2025 demonstrates strong contributions to the tourism fund even as individual properties face uneven recovery patterns.
The proposal from the Ministry comes at a point when regional competition has intensified, with Southeast Asian and Japanese destinations expanding their casino offerings and attracting international visitors through more favorable regulatory environments, and the Korea Casino Association has highlighted how these dynamics affect the ability of domestic operators to retain market share.
Potential Industry Impacts Discussed
Those familiar with the sector observe that a shift to 15% could compound existing challenges related to license duration and compliance requirements, while the association has connected these regulatory features to reduced flexibility in responding to market fluctuations and visitor trends.
Figures from 2025 show the tourism fund received its highest amount from casino operations to date, yet the group argues that sustained increases in the levy rate risk undermining the very revenue streams that support tourism initiatives because operators may face accelerated financial difficulties.
Conclusion
The Korea Casino Association’s warning centers on the combined effects of the proposed levy hike, the unique revenue-based collection method, five-year license terms, and other regulatory elements that they state hinder competitiveness against neighboring markets, and the Ministry’s proposal arrives as the sector continues its post-pandemic rebuilding process with record contributions already recorded in the prior year. The single linked source for these details appears in the association statement.