Korean Tourism Groups Call for Withdrawal of Casino Levy Reform Plan

Twelve Korean tourism-linked organizations released a joint statement on August 3 2026 urging South Korea’s Ministry of Culture, Sports and Tourism to withdraw its proposed casino industry reform while the Korea Casino Association, Korea Tourism Association, Korea Hotel Association, and Korea Association of Travel Agents led the coalition alongside eight other groups tied to the sector. The statement outlined specific concerns over the plan to raise the levy on foreigner-only casino operators from 10 percent to 15 percent of gaming revenue together with measures that include five-year license renewals. The groups presented data showing that such changes would accelerate bankruptcies for operators still recovering from COVID-19 and would reduce profits by 20 to 37 percent according to internal projections shared in the statement.

Details of the Proposed Reforms

The reform package targets foreigner-only casinos and introduces higher financial obligations along with shorter renewal cycles that replace existing longer-term licensing structures. Officials at the Ministry have framed these adjustments as necessary steps to stabilize the tourism fund yet the joint statement counters that the 50 percent levy increase combined with renewal requirements would strain cash flows at a time when visitor numbers remain below pre-pandemic levels in several regions. The organizations listed Macau, Singapore, the Philippines, and Japan as direct competitors whose lower effective tax rates and more flexible licensing continue to attract integrated resort investments away from South Korea.

Arguments Presented by the Coalition

The coalition emphasized that current operators face ongoing debt obligations from pandemic-related closures and that additional revenue extraction would limit funds available for property upgrades or marketing campaigns aimed at international visitors. Figures cited in the statement projected a direct 20 to 37 percent profit reduction once the new levy takes effect with smaller properties expected to absorb the largest percentage impact because they lack diversified revenue streams from hotels and retail. The groups also noted that five-year license renewals would create uncertainty for long-term planning since investors typically require longer guarantees before committing capital to integrated resort projects that span multiple years from approval to opening.

Integrated resort developments already under discussion would face higher financing costs if lenders perceive increased regulatory risk from shorter license periods and elevated levies according to statements released by the Korea Association of Travel Agents. The organizations pointed to existing contribution levels that already support tourism promotion funds and argued that an abrupt hike would disrupt the balance between operator viability and public revenue goals. Data shared during the announcement showed that several properties have only recently returned to positive operating margins after multiple years of losses tied to travel restrictions.

Competitive Landscape and Tourism Impact

South Korea’s casino sector competes directly with established markets where tax rates on gaming revenue remain lower and licensing frameworks offer greater predictability for developers. The joint statement highlighted that neighboring jurisdictions continue to expand capacity and introduce new facilities while Korean operators would divert capital toward tax payments rather than facility improvements or new attraction development. Travel agents within the coalition reported that tour packages featuring casino visits have seen slower recovery compared with other segments and warned that further pressure on operators could reduce available inventory for international packages.

Observers tracking the sector noted that the August 3 statement marks the first time such a broad coalition of tourism associations has aligned on a single policy issue in recent years. The document submitted to the Ministry included sector-wide employment figures and visitor spending estimates that the groups say would decline if multiple operators face insolvency or scaled-back operations. The organizations requested formal consultations before any final decision on the levy adjustment or licensing changes.

Conclusion

The joint statement delivered on August 3 2026 positions the twelve organizations as unified stakeholders seeking to maintain the current levy structure and longer license terms while the Ministry evaluates its reform timeline. The arguments center on documented profit impacts, recovery timelines from COVID-19, and competitive positioning against regional markets that maintain different tax and licensing environments. As discussions continue the coalition has indicated it will provide additional data on operator financials and tourism contribution metrics to support its position.