South Korean Tourism Coalition Challenges Proposed Casino Levy Hike

A coalition of 12 South Korean tourism organizations released a joint statement on August 3, 2026, calling on the Ministry of Culture, Sports and Tourism to withdraw a proposed reform that would increase the levy on foreigner-only casino operators from 10 percent to 15 percent of gaming revenue in addition to existing taxes.

The groups, which include the Korea Casino Association, Korea Tourism Association, Korea Hotel Association, and Korea Association of Travel Agents, outlined specific concerns about the measure's effects on operator viability and broader tourism development.

Details of the Proposed Reform

The plan targets foreign-only casinos by raising the contribution rate to a tourism fund, and the coalition argued this adjustment would compound financial pressures already present in the sector. They noted that current tax obligations, when combined with the higher levy, could lead to reduced operational margins that range between 20 and 37 percent according to estimates cited in the statement.

Those figures stem from internal assessments shared by the organizations, which also flagged risks of bankruptcy for some operators if the change takes effect without adjustments.

Concerns Over Investment and Growth

Future integrated resort projects face potential barriers under the proposed structure, the statement explained, because higher ongoing levies would alter projected returns and complicate financing arrangements for large-scale developments. The coalition emphasized that such outcomes could slow the expansion of tourism infrastructure that relies on casino revenue streams.

Integrated resorts typically bundle gaming facilities with hotels, entertainment venues, and retail spaces, and the groups pointed out that investor interest depends on predictable cost frameworks that the levy increase would disrupt.

Record Contributions to the Tourism Fund

The organizations highlighted that the tourism fund already received KRW219.5 billion, equivalent to approximately US$153 million, from casino operators in 2026, marking a record amount. This contribution level, they stated, demonstrates the sector's existing support for tourism initiatives without the need for an immediate rate adjustment.

Chairman Choi Sung-wook statements on tourism fund contributions were referenced in related coverage as underscoring the scale of support already provided by the industry.

Organizations Involved and Their Position

The 12-member coalition represents a broad cross-section of tourism stakeholders, from casino operators themselves to hoteliers, travel agents, and broader industry associations. Their joint statement presented a unified front against the reform, framing the levy increase as a measure that could undermine the financial stability of multiple interconnected businesses.

By issuing the statement collectively on August 3, 2026, the groups aimed to draw direct attention to the Ministry ahead of any final policy decisions.

Potential Sector-Wide Effects

Bankruptcy risks were listed among the primary worries, particularly for smaller or mid-sized foreigner-only casinos that operate with narrower profit margins. The coalition described how a 5-percentage-point levy rise, layered on top of existing taxes, would reduce available capital for maintenance, staffing, and marketing efforts that sustain visitor numbers.

Reduced profits at the estimated 20 to 37 percent range would also limit reinvestment in facilities, which in turn could affect the overall appeal of South Korea as a gaming and tourism destination for international visitors.

Context Within Tourism Funding

The record KRW219.5 billion already directed to the tourism fund in 2026 provides a benchmark for the contributions currently flowing from the casino sector. The coalition used this data point to argue that the fund's revenue needs are being met through existing mechanisms, and that further increases could produce diminishing returns if they trigger operator contractions.

They connected the proposed change to wider questions about how tourism funding balances operator sustainability with government revenue goals.

Conclusion

The August 3, 2026, joint statement from the 12 South Korean tourism organizations sets out clear objections to the levy increase based on projected financial impacts, investment hurdles, and the sector's recent record contributions to the tourism fund. The Ministry of Culture, Sports and Tourism now faces these documented concerns as it considers next steps on the reform.