South Korea Foreigner-Only Casinos Confront Proposed Tourism Levy Rise in July 2026
Written by Otto Coleman · Jul 25, 2026
South Korea Foreigner-Only Casinos Confront Proposed Tourism Levy Rise in July 2026
The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, issued a direct warning in July 2026 about a government proposal to raise the maximum levy paid to the Tourism Promotion and Development Fund from 10 percent to 15 percent of revenue, and association representatives stated that such a change would hasten the bankruptcy of properties still recovering from the COVID-19 downturn.
Observers note that the group emphasized a key distinction in the tax treatment of casinos compared with other industries, pointing out that casinos remain the only sector required to pay levies calculated on revenue even during periods when operations run at a loss, and this structure has continued through multiple economic cycles.
Record Contributions Highlighted Amid Recovery Pressures
Data from recent years shows the foreigner-only casino sector delivered record contributions totaling KRW219.5 billion to the fund in 2025, a figure that reflects a 61.7 percent increase over the KRW135.7 billion recorded in 2019, and association statements connected these payments directly to the financial strain operators face while attempting to stabilize revenues after pandemic restrictions lifted.
Those who have tracked the industry point out that the proposed hike arrives at a moment when many properties continue to manage reduced visitor numbers and elevated operational costs, yet the levy calculation stays anchored to gross revenue rather than net profit, creating ongoing cash-flow demands regardless of individual casino performance.
Additional Regulatory Proposals Draw Opposition
The association also voiced opposition to separate measures under discussion, including a shift toward five-year license renewal cycles and the introduction of stricter ownership rules, and representatives argued these changes would add further administrative and financial burdens at a time when operators seek regulatory stability to support post-pandemic rebuilding.
Figures released alongside the warning illustrate how the existing 10 percent levy already extracts a substantial share of revenue, and any move to 15 percent would compound the effect across all foreigner-only venues without regard to profitability margins or regional market conditions.
Industry analysts have observed that the Tourism Promotion and Development Fund relies on these contributions to support broader tourism initiatives, yet the association maintains that the current formula places disproportionate pressure on a single sector that operates under unique foreign-visitor restrictions and cannot offset losses through domestic customer bases.
Revenue-Based Levy Structure Explained
Under the existing framework the levy applies directly to revenue figures irrespective of whether a casino reports profits or losses in a given year, and association documentation notes this differs from standard corporate taxation models that typically consider net earnings, thereby creating a fixed obligation that persists through downturns such as the extended closure periods experienced during COVID-19.
Records indicate the 2025 contribution of KRW219.5 billion represents the highest annual total to date, and the 61.7 percent growth from 2019 levels occurred even as operators navigated lingering effects of travel restrictions and shifting international visitor patterns.
License Renewal and Ownership Rule Concerns
Proposals for five-year license renewals would replace longer or more flexible terms currently in place, and the association contends that shorter cycles increase uncertainty for long-term investment decisions while stricter ownership rules could limit access to capital from qualified investors, both of which compound the impact of the proposed levy increase.
Those monitoring regulatory developments note that the combined effect of higher levies, shorter renewal periods, and tighter ownership criteria would arrive simultaneously for many operators, and the Korea Casino Association has requested reconsideration of the full package to avoid accelerating financial distress across the foreigner-only segment.
Conclusion
The July 2026 statement from the Korea Casino Association outlines specific numerical impacts of the proposed levy adjustment alongside the sector’s recent contribution history, and it connects these elements to ongoing recovery challenges without altering the fundamental revenue-based calculation that applies uniformly to all member casinos. Data shared in the warning shows both the scale of past payments and the projected consequences of moving from 10 percent to 15 percent, while parallel objections to license and ownership changes illustrate the broader regulatory context under review.