South Korean Tourism Coalition Opposes Proposed Levy Increase on Foreigner-Only Casinos

A coalition of 12 South Korean tourism organizations released a joint statement on August 3 urging the Ministry of Culture, Sports and Tourism to withdraw its proposed casino industry reform, and the groups included the Korea Casino Association along with the Korea Tourism Association, the Korea Hotel Association, and the Korea Association of Travel Agents as they highlighted risks to operator stability and future investment plans.

Details of the Proposed Reform

The plan calls for raising the levy on foreigner-only casino operators from 10 percent to 15 percent of gaming revenue in addition to existing taxes, while industry participants noted that this change would compound financial pressures already present in the sector and could alter revenue allocation patterns that have supported tourism initiatives in prior years.

Organizations Behind the Joint Statement

Twelve groups came together for the statement, and their combined expertise spans casino operations, hotel management, travel agency services, and broader tourism promotion, which allowed them to present a unified view on how the levy adjustment might affect multiple parts of the industry simultaneously rather than isolating effects to a single segment.

Financial Concerns Highlighted by the Groups

The organizations pointed to potential bankruptcies and profit reductions estimated at 20 to 37 percent as direct outcomes of the higher levy, and they emphasized that these figures would create barriers to future integrated resort investments because operators would face tighter margins when planning large-scale projects that rely on steady revenue streams from gaming activities.

Record Contributions to the Tourism Fund

The tourism fund already received a record KRW219.5 billion, which equals approximately US$153 million, from casinos in 2026, and this contribution level demonstrates the scale of support the industry has provided even before any levy increase takes effect, according to figures cited in the joint statement that referenced contributions tracked through official channels.

Observers note that the existing payment structure has delivered substantial resources without requiring an immediate rate adjustment, and the coalition argued that maintaining the current 10 percent levy would sustain these contributions while avoiding the projected profit compression that could reduce overall industry capacity over time.

Potential Effects on Integrated Resort Projects

Future integrated resort investments depend on predictable cost structures, and the groups stated that a jump to 15 percent would introduce uncertainty that discourages new capital commitments because developers typically model returns based on stable tax and levy environments when securing financing for large hospitality and entertainment complexes.

Those who have studied similar policy shifts in other markets have observed that abrupt levy changes can delay project timelines, and the South Korean coalition used this context to illustrate how the proposed reform might slow expansion plans that otherwise align with national tourism growth targets.

Context Around the August 3 Statement

The timing of the statement on August 3 placed the coalition's concerns before the Ministry during active policy review periods, and the organizations coordinated their messaging to present a single, consolidated position that drew on data from multiple associations rather than isolated viewpoints from individual operators.

Conclusion

The joint statement from the twelve organizations outlines specific financial impacts tied to the proposed levy increase and references the record tourism fund contribution already achieved in 2026, which provides a factual baseline for discussions between industry representatives and the Ministry of Culture, Sports and Tourism as the reform proposal moves forward.