Korea Casino Association Flags Risks From Tourism Levy Hike for Foreigner-Only Operators

The Korea Casino Association has issued a warning that a proposed rise in the tourism levy from 10 percent to 15 percent of revenue could accelerate financial strain for South Korea’s foreigner-only casino operators still working through the aftermath of the COVID-19 period, and this alert comes as the sector navigates a mix of regulatory proposals that include five-year license renewals along with tighter ownership requirements.

Details of the Proposed Levy Adjustment

The association represents operators that cater exclusively to foreign visitors, and it points out that the current 10 percent levy on revenue would climb by half under the new plan, creating a uniform charge that applies regardless of whether an individual property records profits or losses in any given year, whereas most other industries face taxation based solely on net earnings after expenses.

This structure means casinos pay into the tourism promotion fund even during periods of negative results, a distinction the group underscores when comparing their obligations to those in hospitality, retail, and transportation sectors that avoid such revenue-based assessments until profitability returns.

Record Collections and Recovery Context

Figures show the fund received a record KRW219.5 billion from these operators during 2025, an amount 61.7 percent above the KRW135.7 billion collected in 2019 before the pandemic disruptions took hold, and the association notes this growth occurred while properties continued to rebuild visitor numbers and stabilize operations following extended closures and travel restrictions.

Observers note the timing of the proposed increase coincides with ongoing efforts to restore pre-2020 revenue levels, and the association argues that the added burden arrives while operators manage higher operational costs and competitive pressures from regional markets in Singapore, Macau, and the Philippines.

Additional Regulatory Concerns Raised

Beyond the levy, the group has highlighted plans to shift license renewals to a five-year cycle and to introduce stricter rules on ownership structures, measures that the association contends would reduce flexibility for long-term planning and investment decisions at a moment when Asian competitors offer more stable regulatory environments for similar establishments.

The Korea Casino Association states these combined changes could limit the ability of South Korean venues to attract international capital and retain market share, since neighboring jurisdictions maintain tax and licensing frameworks that adjust more closely to actual profitability and allow longer predictability horizons for operators.

Industry Positioning and Competitive Landscape

Those who track the sector point out that foreigner-only casinos in South Korea have historically contributed to tourism revenue through dedicated funds, yet the current proposals would maintain the revenue-based levy model while shortening renewal periods, a combination that the association says places local operators at a disadvantage against facilities elsewhere that benefit from profit-linked taxation and extended license terms.

Data from 2025 collections reflect increased contributions despite lingering recovery challenges, and the association uses these numbers to illustrate that operators have already delivered higher payments to the tourism fund even as they address post-pandemic operational adjustments.

Conclusion

The Korea Casino Association’s statements center on the potential effects of the levy increase, the revenue-based taxation approach, the five-year renewal cycle, and the ownership restrictions, all framed against the backdrop of 2025’s record fund collections and the broader recovery from COVID-19 impacts, with the group emphasizing how these elements together could affect competitiveness for South Korea’s foreigner-only casino operators relative to other Asian markets.