South Korea's Foreigner-Only Casinos Confront Proposed Tourism Levy Adjustments

The Korea Casino Association has issued a direct warning about a Ministry of Culture, Sports and Tourism proposal that would raise the tourism levy from 10 percent to 15 percent of revenue for foreigner-only casino operators, and those operators continue their recovery from pandemic-related disruptions that began years earlier.

Representatives from the association point out that such an increase would accelerate financial strain on properties still rebuilding visitor numbers and operational stability after COVID-19 restrictions eased, and the same proposal introduces five-year license renewal cycles along with tighter ownership regulations that could reshape how these facilities operate going forward.

Details of the Ministry Proposal

The Ministry of Culture, Sports and Tourism outlined its plan to adjust the existing tourism levy structure, and the Korea Casino Association responded by highlighting the unique tax position faced by its members who pay levies based on revenue regardless of whether operations generate profits or losses in a given period.

Data from the past decade shows roughly half of the operators recorded annual deficits under current rules, and the association notes that further pressure from a higher levy rate could push more facilities toward insolvency while they attempt to stabilize post-pandemic finances.

Industry Taxation and Recent Collections

Unlike many other sectors, South Korea's foreigner-only casinos face taxation calculated on gross revenue even during periods of net loss, and this structure has contributed to persistent financial challenges documented across multiple years of operation.

Record collections reached KRW219.5 billion for the tourism fund in 2025, and these figures demonstrate the significant contribution already flowing from casino revenues into national tourism initiatives before any proposed rate change takes effect.

License Renewal and Ownership Changes

The ministry proposal pairs the levy adjustment with a shift to five-year license renewal periods, and it adds stricter ownership rules that would apply to existing operators seeking continued approval to run foreigner-only facilities.

Those provisions would require operators to meet updated criteria during each renewal cycle, and the Korea Casino Association has indicated that combined effects of higher levies plus new regulatory hurdles could compound recovery difficulties for properties still regaining ground lost during the pandemic years.

Context of Post-Pandemic Recovery

Casino operators represented by the association have worked through phased reopenings and gradual visitor return patterns since COVID-19 measures lifted, and financial reports from recent periods show uneven progress across the group with some facilities posting deficits even as overall tourism fund collections hit record levels.

Observers familiar with the sector note that revenue-based taxation continues regardless of individual property performance, and this ongoing obligation forms a central element in the association's statements about the proposed levy increase scheduled for discussion in July 2026.

Association Position and Industry Data

The Korea Casino Association compiled figures showing sustained deficits among roughly half its members over the previous ten years, and it presented those statistics alongside projections that a 15 percent levy would shorten the timeline to bankruptcy for operators already managing thin margins.

Representatives emphasized that current collections already deliver substantial support to the tourism fund, and they argued the proposed rate hike arrives at a moment when properties require stable conditions to complete their post-pandemic stabilization efforts.

Conclusion

The Korea Casino Association continues to engage with the Ministry of Culture, Sports and Tourism regarding the combined elements of the levy increase, five-year renewals, and ownership adjustments, and the discussion centers on documented revenue trends and deficit patterns that predate and persist after the COVID-19 period. Statement on proposed tourism levy increase (July 2026) provides the primary source material for these developments, and further updates on the regulatory process are expected as consultations proceed.