Korea Casino Association Raises Concerns Over Tourism Levy Proposal
Written by Devon Hartmann · Jul 24, 2026
Korea Casino Association Raises Concerns Over Tourism Levy Proposal
The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, has issued a warning about a proposed increase in the mandatory tourism levy from 10% to 15% of revenue, noting that such a change would accelerate financial strain for operators still working to recover from the effects of COVID-19, and the group pointed out that casinos face a distinctive burden because they pay levies based on revenue even during periods of losses, in contrast to other industries that face taxation primarily on profits.
According to the association’s statement released in July 2026, the higher levy would compound existing challenges at a time when visitor numbers have not fully returned to pre-pandemic levels, while operators continue to manage elevated operational costs and reduced cash flow, and the organization emphasized that this revenue-based structure differs markedly from standard corporate taxation models applied elsewhere in the economy.
Details of the Proposed Changes
Under the current framework the tourism levy stands at 10% of gross revenue for foreigner-only casinos, yet the suggested adjustment would raise that figure to 15%, a shift the association argues would push several facilities closer to insolvency, and alongside this adjustment come proposals to limit license renewals to five-year terms, a measure the group contends would undermine long-term planning and reduce the sector’s ability to compete with established gaming destinations across Asia.
Those who have reviewed the proposal note that the shortened renewal cycle introduces uncertainty for investors and management teams who require stable regulatory environments to justify capital expenditures on property upgrades and marketing initiatives, while regional competitors in places like Macau, Singapore, and the Philippines maintain more flexible licensing structures that allow operators greater predictability when making strategic decisions.
Impact on Post-Pandemic Recovery
Casino operators in South Korea began reopening facilities after extended closures during the height of the pandemic, yet many continue to report revenues well below 2019 benchmarks, and the association highlighted that additional financial obligations at this stage would slow the pace of recovery for properties that have already absorbed significant losses from reduced foot traffic and higher compliance expenses, while the revenue-based levy means payments continue regardless of whether a facility posts a profit or records a deficit in any given quarter.
Figures shared by the group show that several member casinos operated at a loss for multiple consecutive years following the pandemic, which makes the proposed increase particularly acute because it would require payments on top of existing debts and ongoing operational shortfalls, and observers familiar with the industry point out that this structure creates a unique disadvantage compared with other tourism-related businesses that pay taxes only after covering their costs.
Competitive Position Against Regional Rivals
The association further warned that the combination of higher levies and shorter license terms would erode South Korea’s standing relative to neighboring jurisdictions that have expanded their gaming offerings and refined their regulatory approaches, and data from industry reports indicate that visitor spending in competing markets has rebounded more quickly in some cases, leaving Korean operators at a disadvantage when attempting to attract high-value international clientele who have multiple destination options.
Those monitoring regulatory developments note that five-year renewal cycles would force operators to prepare extensive applications on a more frequent basis, increasing administrative costs and diverting resources away from customer experience improvements and staff training programs, whereas longer or more stable licensing arrangements in other countries allow operators to focus on growth rather than repeated compliance exercises.
Association’s Position and Next Steps
In its July 2026 statement the Korea Casino Association called for policymakers to reconsider the levy adjustment and license renewal provisions, arguing that maintaining the current 10% rate would support continued recovery while preserving the sector’s contribution to tourism revenue and employment, and the group suggested that alternative approaches, such as profit-based taxation models used in other industries, could achieve government objectives without placing disproportionate pressure on casino operators.
The association referenced its role in representing all foreigner-only casino operators across the country, and it urged dialogue with relevant government bodies to explore adjustments that balance fiscal needs with the long-term viability of the industry, noting that without such considerations several facilities might face closure, which would reduce overall tourism tax collections and eliminate jobs tied to the sector.
Conclusion
The Korea Casino Association’s warning centers on the proposed tourism levy increase and related licensing changes, framing them as measures that could accelerate bankruptcies among operators recovering from COVID-19, and the statement underscores the revenue-based nature of the current levy along with concerns about competitiveness against regional markets, while the organization continues to engage with stakeholders on these specific policy proposals as of July 2026.