Korean Tourism and Casino Groups Issue Joint Call to Halt Proposed Levy Increase

On August 3, 2026 twelve Korean tourism and casino-related organizations released a coordinated statement urging South Korea’s Ministry of Culture, Sports and Tourism to withdraw a draft plan that would raise the maximum levy on foreigner-only casino operators from 10 percent to 15 percent of gaming revenue while introducing five-year license renewal cycles. The groups, which include the Korea Casino Association, Korea Tourism Association, Korea Hotel Association and Korea Association of Travel Agents, argue that the changes would arrive while the sector continues to rebuild visitor numbers after the pandemic disruptions of recent years.

Details of the Proposed Reforms

The draft measures would increase the top tax rate applied to gross gaming revenue from foreigner-only casinos by half, moving it from the current 10 percent cap to a new 15 percent ceiling, and they would replace existing license terms with fixed five-year renewal periods that could tie future approvals to performance benchmarks. Industry statements note that these adjustments form part of a broader package aimed at adjusting contributions to national tourism funds, although exact updated contribution figures remain listed as N/A in the referenced materials.

Organizations Behind the Statement

The twelve signatories represent a cross-section of operators, hotels, travel agencies and resort developers whose businesses interconnect with inbound tourism and integrated resort projects. Their joint statement highlights how the proposed levy hike would directly reduce net revenue available for reinvestment, potentially slowing construction timelines on new integrated resorts that have been positioned as key drivers of regional economic activity.

Arguments Presented by the Groups

According to the August 3 statement the higher levy would threaten post-COVID recovery momentum by cutting operator margins at a moment when visitor arrivals from key source markets have only recently stabilized. The organizations further contend that reduced profitability would limit capital expenditure on property upgrades and marketing campaigns, while also weakening South Korea’s position relative to established competitors in Macau, Singapore and the Philippines as well as the emerging Japanese market where integrated resorts are advancing through regulatory stages. They point out that five-year license cycles could add administrative uncertainty that might deter long-term foreign investment commitments already under discussion for several coastal and urban resort sites.

Context Within Regional Competition

Observers note that South Korea’s foreigner-only casino segment has historically operated under a lighter tax burden compared with some neighboring jurisdictions, a structure that helped attract high-roller traffic and supported integrated resort financing models. The joint statement emphasizes that any sudden shift in the levy rate risks prompting operators to reassess expansion plans while regional rivals continue to market aggressive incentive packages and streamlined licensing processes. Data referenced in industry briefings indicates that gaming revenue from foreign visitors remains a significant contributor to overall tourism receipts, although precise 2026 projections tied to the tourism fund are currently marked N/A in the available documentation.

Potential Industry Impacts Discussed

Those who have studied the sector’s post-pandemic trajectory point out that several properties are still recovering occupancy and table-game volumes that dropped sharply during border restrictions. A 50 percent increase in the maximum levy rate, the groups argue, would compound existing cost pressures from inflation in labor and construction materials, thereby extending the timeline before operators reach pre-pandemic profitability levels. The statement also flags risks to employment in hospitality and ancillary services that depend on steady resort footfall, suggesting that delayed investment decisions could ripple through supply chains serving both casino and non-gaming amenities.

Next Steps and Government Response

As of the statement’s release the Ministry of Culture, Sports and Tourism has not issued an official reply to the twelve organizations. Industry participants indicate they plan to submit additional position papers detailing projected revenue shortfalls and investment delays should the draft proceed unchanged. The organizations have requested further consultations before any final regulatory text is submitted for cabinet or legislative review.

Conclusion

The August 3, 2026 joint statement from twelve Korean tourism and casino organizations marks a unified pushback against the proposed levy increase and licensing changes, framing the reforms as a potential setback to ongoing sector recovery and regional competitiveness. The coming weeks will reveal whether the Ministry adjusts the draft in response to these concerns or advances the measures toward implementation.