South Korean Tourism Groups Unite Against Proposed Casino Levy Increase

A coalition of 12 South Korean tourism organizations released a joint statement on August 3 that directly addresses the Ministry of Culture, Sports and Tourism, and the groups called for the withdrawal of a proposed reform targeting foreigner-only casino operators. The plan outlined in the statement would increase the existing levy from 10 percent to 15 percent of gaming revenue on top of taxes already in place, and the organizations detailed several potential consequences including possible bankruptcies along with profit reductions estimated between 20 and 37 percent that could also hinder future integrated resort developments.

The Korea Casino Association joined the Korea Tourism Association, the Korea Hotel Association, and the Korea Association of Travel Agents in the effort, while eight additional groups completed the coalition of 12. Those organizations emphasized that the tourism fund had already collected a record KRW219.5 billion, equivalent to roughly US$153 million, from casino contributions during 2026, and they argued this level of support demonstrated the current framework's effectiveness without requiring further adjustments.

Details of the Proposed Reform and Industry Concerns

The reform centers on raising the levy applied specifically to casinos that cater exclusively to foreign visitors, and the coalition pointed out that such an increase would layer additional financial pressure onto operators already managing multiple tax obligations. Industry figures cited in the statement showed profit impacts ranging from 20 to 37 percent depending on individual casino performance, while the groups warned that some facilities might face bankruptcy risks if the higher rate takes effect. They also noted barriers to planned investments in integrated resorts, since higher ongoing costs could reduce the appeal of large-scale projects that combine gaming with tourism infrastructure.

Observers note the timing of the statement coincides with strong contributions already flowing into the tourism fund, and the record KRW219.5 billion collected in 2026 provides context for why the organizations view the current levy structure as sufficient. The coalition presented data showing steady revenue streams that support tourism initiatives without the need for an immediate hike, and they urged policymakers to reconsider before implementing changes that could disrupt operations.

Those who've examined the proposal note that the additional 5 percent levy would apply on top of existing taxes, creating a cumulative burden that the coalition believes could alter business viability for multiple operators. The statement includes projections of reduced profitability that would limit funds available for maintenance, marketing, and expansion, while also raising questions about the feasibility of new integrated resort projects that the government has previously encouraged as part of broader tourism growth strategies.

Current Contributions to the Tourism Fund

Data from 2026 shows the tourism fund received KRW219.5 billion from casino sources, marking a record amount that the coalition referenced as evidence of the sector's ongoing support for national tourism objectives. The organizations highlighted this figure to illustrate that the existing 10 percent levy already generates substantial resources, and they suggested the proposed increase might yield diminishing returns if it leads to reduced overall revenue from struggling operators. Figures reveal consistent payments that have grown over time, providing a baseline the groups believe should inform any policy adjustments rather than prompting abrupt changes.

The coalition further connected the fund's performance to wider economic activity, since foreigner-only casinos attract international visitors whose spending extends beyond gaming into hotels, travel packages, and local services. Raising the levy, according to the statement, risks interrupting that cycle at a moment when contributions have reached their highest recorded level.

Next Steps and Industry Outlook

The Ministry of Culture, Sports and Tourism received the joint statement on August 3, and the coalition awaits a formal response while maintaining that the proposed reform requires further review. The groups indicated they remain open to dialogue that incorporates operator feedback and updated financial modeling, and they reiterated their position that teh current levy structure balances revenue generation with sector sustainability. Additional discussions may focus on alternative measures that preserve investment incentives while meeting tourism fund targets.

Conclusion

The August 3 statement from the 12 South Korean tourism organizations lays out specific objections to the planned levy increase, and the details provided cover projected profit reductions, bankruptcy risks, and investment barriers alongside record fund contributions already achieved in 2026. The coalition's coordinated effort brings together major associations to present a unified case to the Ministry of Culture, Sports and Tourism, and the arguments center on maintaining the stability that has supported both casino operations and broader tourism revenue streams.