South Korea Casino Operators Raise Concerns Over Proposed Tourism Levy Increase

The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, issued a formal warning in July 2026 that a proposed hike in the mandatory tourism levy from a 10 percent maximum to 15 percent of revenue would hasten the bankruptcy of casinos still recovering from the COVID-19 pandemic, and the group pointed out that these facilities face unique taxation on revenue even when operating at a loss.

Details of the Proposed Levy Change

Under the current framework the tourism levy applies to casino revenue at rates up to 10 percent, yet the new proposal would raise that ceiling to 15 percent, and association representatives noted that this adjustment comes at a time when many operators continue to rebuild visitor numbers and stabilize finances after years of pandemic-related closures and restrictions. The warning emphasized that casinos differ from other tourism businesses because they pay the levy based on gross revenue rather than profit, which means facilities can face substantial tax obligations even during periods of net losses.

Record Tourism Fund Collections Highlighted

Association statements referenced record tourism fund collections of KRW219.5 billion in 2025, a figure that represents a 61.7 percent increase compared with 2019 levels, and observers noted that this growth in fund revenue occurs alongside proposals that could place additional pressure on the very operators contributing to those collections. The data shows sustained recovery in tourism-related income while casino-specific challenges persist, and the group argued that further increases risk undermining the sector’s ability to maintain operations and employment.

Impact on Post-Pandemic Recovery

Many South Korean foreigner-only casinos have focused on attracting international visitors through enhanced amenities, digital marketing campaigns, and partnerships with travel agencies, yet recovery trajectories remain uneven across the sector, and the association warned that an increased levy combined with licensing and ownership changes could stall these efforts. Data from 2025 indicates strong overall tourism fund performance, yet individual operators continue to report variable revenue streams that make fixed-percentage taxation particularly burdensome during slower periods.

Comparative Context With Regional Markets

Regional competitors have implemented tax structures and regulatory timelines that differ from those under consideration in South Korea, and industry reports indicate that operators in neighboring jurisdictions often benefit from profit-based taxation models or extended license periods that provide greater predictability for capital allocation. The Korea Casino Association referenced these differences when highlighting how the proposed changes might affect the country’s position in the broader Asian gaming and tourism landscape, where visitor flows and investment decisions respond quickly to policy signals.

Statements From the Association

Representatives from the Korea Casino Association outlined specific scenarios in which higher levies could accelerate financial distress for multiple facilities, particularly those that have not yet returned to pre-pandemic revenue levels, and they called for policymakers to consider the unique revenue-based tax structure when evaluating the tourism levy adjustment. The group also submitted data on employment and supplier relationships supported by casino operations, noting that disruptions at the operator level would extend beyond the facilities themselves into the wider tourism supply chain.

Conclusion

The Korea Casino Association’s July 2026 warning centers on the combined effects of the proposed 15 percent tourism levy, five-year license renewals, and tighter ownership rules, all framed against a backdrop of record tourism fund collections and ongoing post-pandemic recovery. The statements underscore the revenue-based taxation model that distinguishes casinos from other businesses and the potential consequences for operators competing in a dynamic regional market. Policymakers continue to review the proposals while industry stakeholders monitor developments that could reshape South Korea’s foreigner-only casino sector in the coming years.