Korea Eyes Raising Casino Tourism Fund Contributions to 15%

South Korea is considering a significant adjustment to the contributions foreigner-only casinos make to the Tourism Promotion and Development Fund. The Ministry of Culture, Sports and Tourism, together with the National Assembly, announced a plan to raise the cap from 10% of revenue to 15%. While the increase appears modest at 5 percentage points, the total contributions are projected to grow by 50% from current levels.

The reform is part of a broader initiative to modernize the casino licensing system, which has largely remained unchanged since 1995. The proposed changes would introduce a license renewal mechanism and require prior approval for changes in major shareholders. Officials emphasized the goal of transitioning from a long-term licensing model to one based on periodic oversight. An official from the Ministry of Culture, Sports and Tourism explained, “The casino business is essentially a licensed industry. As the industry has grown, it is necessary to adjust both license management and mechanisms for reinvestment in the tourism industry. These discussions are not about imposing regulations to pressure a specific sector, but rather about refining the system to enhance trust in the casino industry.”

Impact on Casino Operators and Fund Contributions

If implemented, the proposed adjustment would primarily affect Korea’s six highest-revenue casinos on the mainland, such as Paradise Co.’s Paradise City, Walkerhill, and Grand Korea Leisure’s Seven Luck properties. Edaily reported that these operators could see contributions increase by KRW 30 billion to 50 billion (approximately US$20–35 million) annually. The tiered structure is expected to remain, applying the highest rates to top-earning casinos, while Jeju’s eight foreigner-only casinos would remain under the jurisdiction of the island’s Special Self-Governing Province legislation.

Casino operators have voiced concerns that the proposed increase could reduce competitiveness. A representative from the Korea Casino Tourism Association noted, “Given the competition to attract high-spending foreign visitors with destinations such as Japan, Macau, Singapore, and the Philippines, an increased cost burden on Korean casinos could weaken their price and marketing competitiveness.” The industry also urged incentives for investments in non-gaming facilities, such as MICE events and linked group tours, to balance the increased levy.

Economic Context and Revenue Trends

Since 1995, total revenue from the foreigner-only casino sector has risen 10.3-fold, with average revenue increasing 7.8-fold. In 2025 alone, revenue from these casinos reached KRW 2.2 trillion. The ministry highlighted the importance of aligning public contributions with the industry’s current scale, noting that the adjustments would support reinvestment in tourism infrastructure and professional training within the sector.

As reported by Edaily, Jeong Gwang-min of the Korea Culture and Tourism Research Institute emphasized that clarity in both rationale and application is essential to avoid contraction, stating, “Plans and strategies for utilizing the increased funds—such as reinvesting them in expanding local tourism infrastructure and training casino professionals—must be presented to strengthen the industry’s fundamental competitiveness.”

Alongside the contribution adjustment, authorities are evaluating a shift to periodic licensing and a prior approval system for controlling-shareholder changes, prompted by recent ownership transitions, including Inspire Entertainment Resort in Incheon and Jeju Sun Hotel & Casino. Such measures aim to enhance oversight, transparency, and accountability in the sector, while maintaining Korea’s attractiveness to foreign investment.

Industry reaction has been cautious, with some operators concerned that simultaneous implementation of multiple reforms could heighten policy uncertainty. Nevertheless, officials argue that the planned updates are intended to maintain sustainable growth and bolster public confidence in Korea’s licensed casino industry.

The proposal has not yet been formally introduced in parliament, and discussions are ongoing, particularly regarding its potential application to Jeju’s special governance framework.