South Korean Tourism and Casino Groups Issue Joint Call Against Proposed Levy Hike

Twelve Korean tourism and casino-related organizations delivered a unified message on August 3, 2026 when they released a joint statement directed at the Ministry of Culture, Sports and Tourism. The coalition, which includes the Korea Casino Association along with the Korea Tourism Association, Korea Hotel Association, and Korea Association of Travel Agents, explicitly asked the ministry to withdraw a set of reforms that would increase the maximum levy on foreigner-only casino operators from 10 percent to 15 percent of gaming revenue while introducing five-year license renewal cycles. The groups framed the changes as a direct threat to the sector's post-pandemic rebound. They pointed out that the 50 percent rise in the levy would cut into already thin profit margins, limit funds available for property upgrades, and slow momentum toward integrated resort development across the country.

Details of the Proposed Reforms

The ministry's plan centers on two main adjustments. First, the levy applied to revenue generated by casinos that cater exclusively to foreign visitors would climb from its current 10 percent ceiling to 15 percent. Second, operating licenses would shift to a fixed five-year renewal schedule rather than the more flexible terms currently in place. Officials have presented these measures as part of broader efforts to stabilize industry contributions to national tourism funds, yet the twelve organizations countered that the timing and scale of the increases risk undermining recovery gains achieved since COVID restrictions lifted.

Those who have tracked the sector note that foreigner-only casinos in South Korea already operate under stricter regulatory and tax conditions than many regional competitors. The proposed levy adjustment would place additional pressure on operators that have only recently begun to see visitor numbers return to pre-pandemic levels.

Arguments Presented in the Joint Statement

The statement outlined several interconnected concerns. Industry representatives argued that higher levies would reduce the capital operators can reinvest in facilities, marketing, and staff training. They also warned that diminished profitability could discourage new investment in integrated resort projects, which combine gaming with hotels, convention centers, and entertainment venues designed to attract extended stays from international travelers.

Competitiveness formed another core point. The organizations compared South Korea's position with established markets in Macau, Singapore, and the Philippines, as well as Japan's emerging casino destinations. They stated that an increased levy would widen the gap between domestic operators and those in jurisdictions where tax and regulatory burdens remain lower, potentially diverting high-value foreign visitors away from Korean properties.

Industry Context and Recovery Efforts

Recovery since the pandemic has been uneven across the Korean casino landscape. Properties have focused on rebuilding relationships with overseas tour operators and travel agents while upgrading digital booking systems and loyalty programs. The twelve signatories emphasized that these recovery initiatives require consistent revenue streams and predictable regulatory frameworks. A sudden levy increase, they contended, would interrupt ongoing projects and force operators to scale back expansion plans that support thousands of jobs in hospitality and related services.

License renewal procedures also drew attention. The shift to five-year cycles introduces new administrative layers that could slow decision-making on capital expenditures and long-term partnerships. Groups familiar with the licensing process noted that longer approval timelines often coincide with periods of market uncertainty, further complicating investment decisions.

Potential Ripple Effects Across Tourism

The coalition highlighted connections between casino performance and broader tourism indicators. Foreign visitors who arrive primarily for gaming often extend their stays to visit cultural sites, shop, and dine, creating secondary spending that benefits hotels, restaurants, and transport providers. Any contraction in casino activity, according to the statement, would reduce this ancillary economic activity and weaken the overall contribution of tourism to national revenue.

Travel agents and hotel operators among the signatories described how integrated resort projects have become anchors for regional development plans. These projects rely on stable operator finances to secure financing and meet construction milestones. The proposed changes, they argued, introduce new variables that could delay or shrink the scope of such developments.

Conclusion

The joint statement delivered on August 3, 2026 represents a coordinated effort by twelve organizations to influence the direction of casino policy before final decisions are reached. The groups have requested direct dialogue with the Ministry of Culture, Sports and Tourism to discuss alternatives that maintain industry contributions while preserving the conditions needed for sustained growth. As the ministry reviews the feedback, the arguments presented in the statement will likely shape ongoing discussions about levy structures, licensing timelines, and South Korea's standing among regional gaming destinations.