Korean Tourism and Casino Groups Urge Withdrawal of Proposed Industry Reforms

The Korea Casino Association joined eleven other tourism and hospitality organizations on August 3, 2026, in issuing a collective statement that calls on South Korea’s Ministry of Culture, Sports and Tourism to abandon plans for higher levies and revised licensing rules. Twelve groups signed the document, among them the Korea Tourism Association, the Korea Hotel Association, and the Korea Association of Travel Agents, and each one represents sectors that rely on steady casino revenue streams. The statement focuses on a proposed increase in the maximum levy applied to foreigner-only casino operators, which would rise from the current 10 percent of gaming revenue to 15 percent, and it also addresses the introduction of five-year license renewal cycles along with additional regulatory adjustments.

Details of the Proposed Changes

The Ministry’s draft reform package centers on adjusting the financial obligations of casinos that cater exclusively to foreign visitors, while the levy hike represents a 50 percent increase over existing rates. License renewals would shift to a fixed five-year schedule, and the organizations note that these modifications would coincide with ongoing efforts to stabilize operations after pandemic-related disruptions. Industry participants point out that current levy structures already direct portions of revenue toward tourism development funds, and any escalation would require operators to recalculate projected returns before committing capital to integrated resort projects.

Arguments Presented in the Joint Statement

The twelve signatories maintain that the higher levy would slow post-COVID recovery by reducing the capital available for facility upgrades and marketing initiatives aimed at international visitors. They further contend that profit margins would shrink noticeably, which in turn could limit funds allocated for new construction and for partnerships with global resort developers. The statement highlights competitive pressures from established markets in Macau, Singapore, and the Philippines, and it references upcoming venues in Japan as additional factors that could draw high-value customers away from Korean properties if operating costs rise disproportionately.

Observers note that the organizations compiled data on tourism fund contributions when preparing their response, yet specific figures remain referenced only in internal industry summaries rather than public releases. The groups emphasize that integrated resort investments require long-term certainty, and they argue that frequent or substantial changes to levy rates and license durations introduce uncertainty that may deter overseas partners. Several signatories represent travel agencies and hotel chains whose client bases include casino tourists, and these members describe potential downstream effects on bookings, transportation services, and hospitality employment levels.

Industry Context and Recovery Concerns

Since the easing of travel restrictions, foreigner-only casinos in South Korea have recorded gradual increases in visitor numbers, yet total revenue has not returned to pre-pandemic peaks according to statements released by the associations. The joint document outlines how an additional five percent levy would compound existing challenges, including fluctuating exchange rates and regional competition for premium players. License renewal procedures currently allow longer planning horizons, and the proposed five-year cycle would require operators to prepare renewal applications more frequently, adding administrative costs that the groups say could divert resources from customer experience improvements.

Representatives from the Korea Hotel Association and the Korea Association of Travel Agents explained that many integrated resort plans depend on casino revenue forecasts that incorporate the existing 10 percent maximum. Adjusting those forecasts downward would force revisions to construction timelines and financing arrangements already under discussion with international investors. teh statement stops short of proposing alternative levy structures, instead requesting that the Ministry retain the current framework while conducting further consultations with affected stakeholders.

Responses and Next Steps

Ministry officials have not issued a formal reply to the August 3 statement as of the latest available information, and industry participants continue to monitor regulatory announcements for any indications of revised timelines. The twelve organizations have scheduled follow-up meetings to coordinate additional communications, and they plan to submit detailed economic impact assessments that quantify projected revenue shortfalls under the proposed 15 percent rate. Those assessments will incorporate data on tourism fund contributions that the groups have compiled internally, although the figures have not yet been released for broader circulation.

Conclusion

The joint statement issued on August 3, 2026, consolidates positions from twelve separate organizations and presents a unified request for the Ministry of Culture, Sports and Tourism to reconsider the casino reform measures. The document centers on the levy increase, the five-year license cycle, and the potential effects on post-pandemic recovery and regional competitiveness. Stakeholders across the tourism and casino sectors now await further clarification on whether the Ministry will adjust its draft proposals or proceed with the original framework, while operators continue to evaluate investment decisions under the existing regulatory structure.