The Korea Casino Association has called for the withdrawal of proposed changes that would raise the tourism fund contribution ceiling for foreigner-only casinos and introduce five-year license renewals.
In a statement issued on July 22nd, the association warned that the measures could weaken casino operators’ finances, restrict long-term investment and threaten employment as regional competition intensifies.
South Korea’s Ministry of Culture, Sports and Tourism is considering raising the statutory ceiling for contributions to the Tourism Promotion and Development Fund from 10 percent to 15 percent of casino sales.
The association argued that the contribution is particularly burdensome because it is calculated on revenue rather than operating profit. Casinos must therefore make payments even when they record losses, while also paying individual consumption tax, corporate tax, local taxes and other charges.
It warned that a higher contribution could disrupt the industry’s recovery from the pandemic, weaken operators’ credit ratings and lead to major investments being reduced or canceled.
The association also cited the planned opening of the MGM Osaka integrated resort in 2030, arguing that South Korean operators need continued investment to compete for international customers.
It separately opposed the proposed introduction of five-year casino license renewals. South Korean casinos have operated without fixed license terms since 1994, although existing legislation allows regulators to suspend or revoke licenses for violations.
The association said periodic renewals would increase regulatory and financing uncertainty, potentially affecting large integrated resort investments and employment.
The ministry defended the proposed changes, noting that total revenue generated by foreigner-only casinos had increased 10.3-fold since the fund contribution system was introduced in 1995. Average revenue per operator had risen 7.8-fold, while the contribution structure had remained unchanged for about 30 years.
However, the ministry clarified that the proposed 15 percent rate would not be applied to all casino revenue. The higher rate would apply only to a new, yet-to-be-determined bracket covering part of the revenue generated by higher-sales properties.
It also rejected reports that three major casino operators would face approximately KRW90 billion ($60.8 million) in combined additional payments, saying those estimates incorrectly assumed that the 15 percent rate would be applied broadly.
The applicable revenue threshold and contribution rate will be determined through amendments to the enforcement decree following consultation with the casino industry, academics and other experts. The proposals are due to be discussed at a National Assembly forum on July 23rd.
