Korean Tourism Organizations Push Back on Proposed Casino Levy Adjustment

Twelve South Korean tourism organizations released a joint statement in early August 2026 calling on the Ministry of Culture, Sports and Tourism to drop a plan that would increase the levy on foreigner-only casino operators from 10 percent to 15 percent of gaming revenue. The groups, which include the Korea Casino Association, Korea Tourism Association, Korea Hotel Association, and Korea Association of Travel Agents, argued that the change would place additional strain on operators still recovering from the effects of COVID-19. Data from the statement shows the tourism fund already collected a record KRW219.5 billion, equivalent to US$153 million, from casinos in 2026. The organizations listed several potential outcomes if the levy rises, including accelerated bankruptcies among smaller operators, profit reductions ranging from 20 to 37 percent, delays in integrated resort development projects, and reduced ability for Korean casinos to compete with established markets in Macau and Japan. Observers note that the statement arrived at a time when the industry continues to rebuild visitor numbers and revenue streams after pandemic-related closures.

Organizations Behind the Joint Statement

The coalition represents a broad cross-section of the tourism and hospitality sector, with the Korea Casino Association focusing on gaming operations while the Korea Tourism Association and Korea Association of Travel Agents emphasize visitor inflows and package tours. The Korea Hotel Association highlighted lodging partnerships that often tie into casino resort packages. Together the twelve groups presented a unified position that the proposed levy adjustment could disrupt supply chains and employment tied to casino tourism.

According to the statement, the groups compiled data from multiple operators showing how the current 10 percent levy already supports the national tourism fund at record levels. They pointed out that any increase would reduce funds available for marketing campaigns and infrastructure upgrades that attract international visitors.

Details of the Proposed Reform

The Ministry of Culture, Sports and Tourism has considered raising the levy as part of broader regulatory updates for the casino sector. Under the plan, foreigner-only operators would remit 15 percent of gross gaming revenue instead of the existing 10 percent rate. The ministry has not yet finalized the timeline, yet the joint statement urges complete withdrawal rather than modification.

Industry reports indicate that the current levy structure was designed to balance operator viability with contributions to tourism promotion. The organizations noted that the tourism fund reached its highest-ever collection in 2026, suggesting the existing framework already delivers substantial public benefit without further adjustment.

Arguments Presented by the Groups

The statement outlined concrete risks tied to the levy increase. Operators still managing pandemic-era debt loads could face bankruptcy proceedings if margins shrink further. Projected profit declines of 20 to 37 percent would limit capital available for property maintenance and new attractions. Integrated resort investments, which combine casinos with hotels, convention centers, and entertainment venues, might stall as financing becomes harder to secure under tighter cash flow conditions.

Competitiveness concerns featured prominently as well. The groups compared South Korea's position with Macau's established gaming ecosystem and Japan's emerging integrated resorts, noting that higher levies could shift high-value international visitors toward those destinations. Figures from the statement show that Korean casinos have relied on foreign customer segments to drive revenue growth during the recovery period.

Record Contribution to the Tourism Fund

The KRW219.5 billion collected in 2026 represents a milestone for the tourism fund, which uses casino levies to support marketing, destination development, and related initiatives. The organizations emphasized that this record amount demonstrates the sector's ongoing commitment to national tourism goals. They argued that maintaining the 10 percent rate would allow continued growth in contributions without risking operator stability.

Those familiar with the fund's operations have observed that allocations support regional festivals, international promotions, and infrastructure that benefits the wider hospitality industry beyond gaming itself. Any reduction in operator profitability, the statement warned, could eventually lower future collections even as the levy percentage rises.

Broader Context for Korean Casino Tourism

South Korea's foreigner-only casino model has positioned the country as a regional player in Asia's gaming market. The joint statement referenced ongoing efforts to expand integrated resorts that combine gaming with non-gaming attractions to appeal to diverse traveler segments. Delays in these projects, according to the groups, would affect job creation and regional economic development in areas surrounding casino sites.

Travel agents and hotel operators within the coalition described how casino visitors often extend stays through bundled packages, generating additional revenue for airlines, restaurants, and retail outlets. The proposed levy change, they stated, could reduce the number of such visitors by making Korean destinations less price-competitive.

Conclusion

The twelve organizations concluded their statement by requesting direct dialogue with the Ministry of Culture, Sports and Tourism to discuss alternative approaches that preserve operator viability while meeting tourism fund objectives. The record KRW219.5 billion contribution in 2026 stands as evidence of the sector's current support for national goals. As the ministry reviews its reform timeline, the joint position from these groups provides detailed projections on revenue impacts, investment effects, and competitive positioning against neighboring markets. The outcome will shape how South Korean casinos navigate recovery and expansion through the remainder of 2026 and beyond.