Twelve tourism organizations including the Korea Casino Association, Tourism Association, Hotel Association, and Travel Agency Association jointly request the Ministry of Culture, Sports and Tourism to reconsider the casino reform. The controversial plan proposes to increase the maximum percentage of revenue paid by foreigner-exclusive casinos to the Tourism Promotion Development Fund from 10% to 15% of business income, and introduces a five-year renewal license.
Fund Levied on Revenue Rather Than Profit
Industry organizations believe that even if casinos are operating at a loss, they must pay the fund based on business revenue, while also bearing individual consumption tax, corporate tax, and local taxes. Over the past ten years, among the 17 to 18 casinos in Korea, about 8 to 15 record operational losses annually, and levying based on revenue puts pressure on smaller operators.
Profit Impact Could Reach Up to 37%
The industry estimates that increasing the maximum payment ratio by five percentage points could reduce the operating profits of some casinos by up to 37% by 2026. Since 1994, casinos have contributed a total of 5.23 trillion Korean won to the tourism fund, with a payment of 219.5 billion won in 2025, which is 61.7% higher than the 135.7 billion won in 2019.
Five-Year Renewal Increases Long-Term Investment Uncertainty
Since the amendment of the law in 1994, Korean casino licenses have no fixed expiration date under continuous compliance. The industry believes that integrated resorts often require investments of hundreds of billions or even trillions of won and take many years to recoup, and reassessing every five years affects financing and foreign investment decisions.
Mergers and Acquisitions Also Propose Increased Pre-Approval
The reform also considers requiring pre-approval for the transfer or acquisition of casino businesses. Regulators can use this to review the actual controllers and sources of funds, but if the standards, deadlines, and transitional arrangements are unclear, it may also extend the asset transaction and restructuring period.
Competition in Asian Integrated Resorts is Intensifying
Industry organizations compare Korea with Macau, Singapore, the Philippines, and Japan, and specifically mention the MGM Osaka Integrated Resort planned to open in 2030. Their view is that tightening domestic rules may weaken Korea's ability to attract international tourists and capital.
Policy Needs to Balance Public Funds and Competitiveness
The fund rate and periodic renewal can enhance public returns and regulatory accountability, but they also affect cash flow and investment terms. The final plan needs to publicly calculate the burden on operators of different sizes, clarify renewal standards, approval timelines, and transitional rules for existing projects.
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