26 Jul 2026
South Korea Foreigner-Only Casinos Confront Proposed Tourism Levy Jump to 15 Percent of Revenue
The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, has issued a direct warning that a government plan to raise the mandatory tourism levy from 10 percent to 15 percent of revenue could push several facilities into bankruptcy while they continue to recover from pandemic losses, and the group has pointed out that the levy is calculated on gross revenue rather than profits unlike taxes applied to most other industries.
Details of the Ministry Proposal
The Ministry of Culture, Sports and Tourism put forward the levy increase alongside five-year license renewal cycles and tighter ownership requirements, and the association responded by noting that roughly half of its members have posted annual deficits for the past ten years even before any new cost burden takes effect, while the tourism fund itself collected a record KRW219.5 billion from casinos in 2025 which marked a 61.7 percent rise compared with 2019 levels.
Observers note that the revenue-based structure means operators must pay the levy regardless of whether they turn a profit in any given year, and this creates ongoing pressure for facilities that have already faced extended closures and reduced visitor numbers during teh COVID-19 period.
Industry Position and Historical Context
Chairman Choi Sung-wook of the Korea Casino Association stated publicly that the proposed hike would accelerate financial distress for operators still working to stabilize their balance sheets after years of pandemic-related disruption, and he emphasized that the current levy already functions differently from profit-based taxation systems used in other sectors of the economy.
Data from the past decade shows consistent annual shortfalls for about half the foreigner-only casinos operating in the country, and association representatives argue that an additional five percentage points on revenue would leave little room for recovery or reinvestment in facilities that rely heavily on international visitors.
Revenue Collection Trends and Government Rationale
The tourism fund reached KRW219.5 billion in contributions from casinos during 2025, and that figure represented a 61.7 percent increase over the amount collected in 2019 before the pandemic began, yet association members contend that these record inflows have not translated into sufficient support for the operators who generate the revenue.
Ministry officials have framed the levy adjustment as part of a broader package that includes longer license terms and stricter ownership rules, and they have presented the changes as measures intended to strengthen regulatory oversight while increasing funds available for tourism promotion activities across the country.
Those familiar with the sector point out that foreigner-only casinos operate under distinct regulatory constraints compared with domestic gaming venues, and the revenue-based levy applies exclusively to this group of operators which must market primarily to non-Korean visitors.
Potential Consequences for Operators
Association statements indicate that several facilities remain in fragile financial condition after extended periods of limited international travel, and the proposed increase would compound existing deficits by raising the fixed percentage of revenue that must be directed to the tourism fund regardless of operational profitability.
Five-year license renewals are included in the same proposal package, and while the longer renewal period might offer some planning stability, operators have argued that the immediate cost increase from the levy adjustment outweighs any benefit from extended license terms in the short term.
Ownership rules are also set to become stricter under the Ministry plan, and the association has suggested that these additional compliance requirements could further strain resources at a time when many facilities are still focused on restoring visitor numbers and revenue streams to pre-pandemic levels.
Conclusion
The Korea Casino Association continues to advocate for maintaining the current 10 percent levy structure while the industry completes its post-COVID recovery, and the Ministry of Culture, Sports and Tourism has not yet finalized the proposed changes that would raise the rate to 15 percent of revenue along with the accompanying license and ownership adjustments. The debate centers on the differing impacts of revenue-based versus profit-based contributions to public funds, and the outcome will determine the financial trajectory for South Korea’s foreigner-only casino operators in the coming years.