A coalition of South Korean casino and tourism organizations has urged the government to withdraw plans to introduce five-year casino license renewals and raise the maximum tourism fund contribution rate from 10 percent to 15 percent.
The Korea Casino Association and 11 other tourism groups issued the joint statement on Monday, warning that the proposed changes could reduce investment and affect employment across the tourism sector.
The organizations said casino operators contribute to the Tourism Promotion and Development Fund based on gross revenue rather than net profit. They argued that raising the maximum rate could deepen losses among smaller operators that must make payments even when they are unprofitable.
The statement described the proposed measures as a ‘punitive regulatory burden’ and called for the government to withdraw both changes.
The groups also argued that five-year license renewals would create uncertainty for integrated resort projects, which require long-term investments ranging from hundreds of billions to trillions of won.
‘Introducing the renewal system would block the attraction of global capital and undermine the future growth of South Korea’s tourism industry,’ the statement said.
However, the Ministry of Culture, Sports and Tourism said the proposed 15 percent rate would not be applied to the entirety of a casino’s revenue.
The higher rate would apply only to revenue exceeding a new high-revenue threshold, according to an explanatory document released by the ministry. The threshold and other details would be determined after consultation with casino operators, academics and industry experts.
The ministry also said the renewal system would assess whether an operator continued to meet its existing license conditions. It would not require operators to compete again for their licenses, and a transition period would be provided before implementation.
The joint statement was also signed by the Korea Tourism Association, Korea Hotel Association, Korea Association of Travel Agents and Korea MICE Association, among other industry bodies.
