Korean Tourism Groups Urge Withdrawal of Casino Levy Reform Proposal

Twelve Korean tourism and casino-related organizations released a joint statement on August 3, 2026, that called on South Korea’s Ministry of Culture, Sports and Tourism to withdraw a proposed set of casino industry reforms, and the statement highlights concerns over a planned increase in the maximum levy applied to foreigner-only casino operators along with changes to licensing procedures.

The organizations argue that the reforms would raise the levy from 10 percent to 15 percent of gaming revenue, which represents a 50 percent increase, and they note that additional provisions such as five-year license renewals would add further pressure on operators already navigating post-pandemic conditions.

Scope of the Proposed Changes

The reform package centers on adjustments to the financial obligations placed on casinos that cater exclusively to foreign visitors, while the organizations point out that these venues contribute through direct levies and related tourism spending, and the five-year renewal cycle would replace longer or more flexible licensing terms currently in place.

According to the joint statement the higher levy would reduce operator margins at a time when visitor numbers and spending patterns are still stabilizing after COVID-related disruptions, and the groups emphasize that integrated resort projects require sustained capital commitments that could face delays if profitability declines.

Organizations Behind the Joint Statement

The Korea Casino Association joined forces with the Korea Tourism Association, the Korea Hotel Association, and the Korea Association of Travel Agents to lead the effort, and ten additional tourism and hospitality bodies signed on to present a unified industry position on the proposed regulatory shift.

These entities collectively represent operators, suppliers, and service providers across the casino and broader tourism sectors, and their coordinated response underscores shared concerns about how the levy adjustment and renewal requirements might affect employment, infrastructure development, and regional competitiveness.

Competitive Landscape and Industry Arguments

The statement references rival casino destinations such as Macau, Singapore, the Philippines, and upcoming venues in Japan, noting that South Korean operators would face higher effective tax burdens that could reduce their ability to match marketing budgets, facility upgrades, or incentive programs offered elsewhere.

Observers note that integrated resort investments often rely on predictable regulatory frameworks to secure financing, and the organizations contend that the combination of increased levies plus shorter renewal cycles would introduce uncertainty that could slow project timelines or discourage new entrants.

The groups further state that revenue shortfalls at the operator level would limit contributions to tourism promotion funds and related economic activities, adn they highlight data on post-COVID recovery trends that show gradual rather than rapid rebound in high-spending visitor segments.

Regulatory Context and Timeline

The Ministry of Culture, Sports and Tourism has advanced the reform proposal as part of broader efforts to update casino oversight, yet the industry coalition maintains that existing levy levels already balance public revenue needs with operational viability, and they request continued dialogue before any final policy decisions.

Five-year license renewals would require operators to undergo periodic reviews that could involve additional compliance costs, and the organizations point out that such cycles might divert resources from customer-facing improvements or expansion plans.

Conclusion

The joint statement issued on August 3, 2026, consolidates the positions of twelve tourism and casino organizations into a single call for the Ministry to reconsider the levy increase and licensing changes, and the document outlines specific risks to recovery, investment, and regional standing without proposing alternative revenue measures.

Industry representatives continue to monitor developments in the regulatory process, while the ministry has not yet issued a formal response to the coalition’s request for withdrawal of the proposed reforms.