South Korean Tourism Groups Urge Ministry to Drop Casino Levy Increase

Twelve South Korean tourism organizations released a joint statement in August 2026 calling on the Ministry of Culture, Sports and Tourism to withdraw its proposed reform that would increase the levy on foreigner-only casino operators from 10 percent to 15 percent of gaming revenue, and the groups outlined several economic concerns tied to the change while noting the sector's recent financial contributions.

Details of the Proposed Levy Adjustment

The reform targets operators licensed exclusively for foreign visitors, and the organizations argue the higher rate would add pressure on businesses still rebuilding after the COVID-19 downturn while the current 10 percent levy already channels substantial funds into the national tourism budget each year.

Organizations Behind the Joint Statement

The Korea Casino Association joined the Korea Tourism Association, the Korea Hotel Association, and the Korea Association of Travel Agents along with eight other groups to present a unified position, and these bodies represent operators, hotels, travel agents, and related tourism services that depend on steady casino activity to support broader visitor flows across the country.

Arguments on Financial and Investment Effects

According to the statement the increase could reduce operator profits by 20 to 37 percent in the near term, and the groups maintain that such a drop would slow recovery for venues that have yet to return to pre-pandemic revenue levels while simultaneously discouraging new capital commitments toward integrated resort projects that combine gaming with hotels, entertainment, and retail facilities.

Competitiveness with regional markets such as Macau and Japan also featured in the statement, because higher levies in Korea could shift investment decisions toward jurisdictions that maintain lower tax burdens on gaming revenue and the organizations noted that integrated resort developments often require years of planning before they generate stable returns.

Record Contributions to the Tourism Fund

The statement highlighted that the tourism fund collected a record KRW219.5 billion, equivalent to US$153 million, from casino operators during 2026, and this figure demonstrates the sector's existing role in financing national tourism initiatives without the need for an immediate rate adjustment.

Observers note the organizations presented the data to illustrate that the current levy structure already delivers strong support for tourism promotion, destination marketing, and infrastructure improvements, while the proposed hike risks reversing that momentum at a time when visitor numbers and spending patterns are still stabilizing after global travel restrictions lifted.

Context of Post-Pandemic Recovery

Operators in the foreigner-only segment faced extended closures and reduced international arrivals during the pandemic years, and the joint statement emphasizes that many properties continue to manage elevated debt loads and uneven demand recovery, making an additional 5 percent levy a potential trigger for further financial strain or even bankruptcy proceedings in some cases.

Travel agents and hotel partners linked to these casinos reported parallel effects, because reduced casino profitability can lead to lower marketing budgets and fewer packaged tour offerings that bundle gaming with accommodation and sightseeing, and the groups tied these downstream impacts directly to the proposed policy shift.

Conclusion

The twelve organizations delivered their statement as a coordinated appeal for policy reconsideration rather than an outright rejection of regulatory oversight, and they positioned the tourism fund's record 2026 intake as evidence that the existing framework balances revenue collection with industry sustainability. The Ministry of Culture, Sports and Tourism has not yet issued a formal response to the joint request, while the organizations continue to monitor legislative developments that could affect casino licensing, investment timelines, and Korea's standing among Asian gaming destinations.