The government is raising "taxes" on foreigner-only casinos and tightening regulation and oversight. The move is presumed to reflect broadly negative sentiment within the government, including President Lee Jae-myung's remarks about "casino privileges" made during a year-end policy briefing. The casino industry has expressed concern that, at a time when the casino business is growing into integrated resorts (IRs), reduced profits and shrinking investment could weaken its global competitiveness.
According to the Ministry of Culture, Sports and Tourism on the 24th, the government is pursuing a plan to raise the ceiling on foreigner-only casino operators' contributions to the Tourism Promotion and Development Fund under the Tourism Promotion Act from the current "10 percent of gross sales" to "15 percent." In other words, the fund ceiling would rise from 10% of sales to 15%. Detailed calculations are needed, but casino operators are expected to face tens of billions of won in additional burdens.
The current Tourism Promotion Act stipulates that casino operators pay a certain proportion of their gross sales into the Tourism Promotion and Development Fund, within a range of up to 10%. The Enforcement Decree of the Tourism Promotion Act applies a progressive structure: 1% for annual sales of 1 billion won or less, 5% for sales exceeding 1 billion won up to 10 billion won, and 10% for sales exceeding 10 billion won. This provision of the Tourism Promotion Act was created in 1994.
The government is pushing to revise the relevant regulations for the first time in some 30 years. It is considering raising the legal ceiling to 15% and then amending the enforcement decree to create a new "top bracket" above the existing 10% bracket. However, officials say the sales threshold to which the top rate would apply, and whether the existing brackets would be adjusted, have not yet been decided.
The Culture Ministry cited the significant growth of the casino industry over the past 30-plus years as the reason for the revision. A ministry official said, "When the system was introduced in 1994, only six of the 13 foreigner-only casino establishments had sales exceeding 10 billion won, but now most exceed that. Over some 30 years, total foreigner casino sales have grown more than tenfold, and average sales more than sevenfold, so the current system does not sufficiently serve the purpose of the progressive structure."
The official added, "The intent is to create a virtuous cycle whereby, as the casino industry grows with the increase in inbound foreign tourists, part of that revenue is returned to the Tourism Promotion and Development Fund and reinvested in tourism infrastructure and workforce training."
The reason casinos pay into the Tourism Promotion and Development Fund on top of the various taxes and levies borne by ordinary corporations, such as corporate tax, lies in their privileged nature. The intent is that, because they represent government-permitted gambling — a "speculative industry" — they should bear a corresponding cost. It goes without saying that "gambling" is illegal in Korea. Casinos without government permission are also illegal. This is the point of greatest difference from other industries.
Along with adjusting the tourism fund contribution rate, the government is also pursuing a five-year "casino license renewal system" and a "prior-approval system for the transfer and acquisition of casino business rights." The Culture Ministry explained that the license renewal system is not a mechanism to impose new conditions on operators, but a device to periodically check whether they continue to meet the original licensing requirements. It also said the prior-approval system for transfers and acquisitions is an internationally standard management framework to block the inflow of illicit funds in the trading of casino business rights.
The government explained the revision at a roundtable on the 14th attended by casino industry officials, Jeju Province, and the Korea Culture and Tourism Institute, and again on the 23rd at a "Debate on Institutional Improvements for Advancing the Casino Industry" held at the National Assembly Members' Office Building by the office of Rep. Cho Kye-won of the Democratic Party of Korea and the Tourism Sciences Society of Korea.
The revision applies only to foreigner-only casinos and does not apply to Kangwon Land, an "open casino" used overwhelmingly by domestic patrons.
The foreigner-only casino industry is strongly resisting. It argues that raising the Tourism Promotion and Development Fund ceiling would force casinos to pay tens of billions of won more, resulting in worsened profitability. It contends that this would deal a direct blow to casino operators at a time when the number of foreigners using casinos is not increasing, despite the overall recovery of the tourism market.
The Korea Casino Association, a group of casino operators, recently issued a statement saying, "Raising the tourism fund regardless of whether a business is in deficit threatens corporate survival rights and employment," adding that "the introduction of a renewal-permit system also raises disputes over excessive restriction and fairness." It went on to describe tightening domestic regulation ahead of the opening of Japan's Osaka casino integrated resort (IR), slated for 2030, as "suicidal," arguing that "stronger regulation and heavier fiscal burdens will block reinvestment in the domestic casino industry, leading to a weakening of its global competitiveness."
Securities analysts also expect an increase in the tourism fund to lead directly to lower profit margins and falling stock prices. In fact, foreigner-only casino operators have recently experienced sharp share-price declines.
As of 2025, 17 establishments operated by 13 domestic foreigner-only casino corporations, including Paradise and Inspire, posted combined sales of 2.2637 trillion won, of which 219.4 billion won was paid as tourism fund contributions. In the same year, Kangwon Land (one company), an open casino, paid 142.6 billion won in tourism fund contributions on sales of 1.4316 trillion won.
Still, in practical terms, since the casino industry is a licensed (monopoly) business, if the number of companies operating casinos declines due to bankruptcies stemming from poor performance, the sales of remaining casinos could increase. This is why Kangwon Land, an open casino, opposes licensing new open casinos such as one in Saemangeum. Foreigner-only casinos have also taken a negative stance on licensing new operators.
The government's recent hard-line stance appears to reflect the mood within the government — that casinos are a privileged industry granted at the "sacrifice" of the people. President Lee Jae-myung himself clearly revealed this view. During a policy briefing by the Culture Ministry on Dec. 16 last year, Lee, while asking about Grand Korea Leisure (GKL), a state-owned foreigner-only casino enterprise, pointed out, "(Foreigner-only casinos) generate considerable profits, and it is not reasonable for (the Culture Ministry) to grant licenses to the private sector, to specific individuals."
He continued, "This is actually gambling, isn't it? The state is permitting gambling for a special purpose and making money from it," and added, "I hope the Culture Ministry will take this into account later when making policy decisions." He also said, "Why grant (licenses) to individuals, to specific companies? That's why they're called privileges," adding, "Such things should be granted to the public sector, so that (the) profits are used for public benefit."
This is the only occasion on which President Lee has publicly commented on the casino issue since taking office. Of course, even the culture minister, who oversees the matter, has rarely commented on casinos. Since the COVID-19 pandemic, a culture minister's remarks on casinos have concerned the U.S.-based casino operator Inspire.
Former Minister Yu In-chon, who led the Culture Ministry under the Yoon Suk-yeol administration, said the following at the opening ceremony of the Inspire casino integrated resort (IR) on Yeongjong Island in Incheon on March 5, 2024: "The Korean government granted Inspire a casino license this past January. It is the first new license in 19 years since 2005." (He emphasized the word "new.") "This means more than just the addition of one domestic casino establishment. It is also a stirring expectation that it will become a landmark turning point in the history of Korea's cultural tourism."
Yu went on to make this request: "Officials of Inspire Resort, I ask you to lead the sound development of Korea's casino industry through good-faith exchange and fine competition. I also ask you to continue working hard so that it can serve as an inbound platform that spreads our proud Korean Wave culture to the world."
In other words, the government granted a privileged foreigner-only casino license, and this must ultimately serve to develop Korea's casino industry and spread K-culture.
