South Korea is expanding the size and scope of loans it provides to casino operators through the Tourism Promotion and Development Fund for the first time in 28 years. The move is seen as an effort to broaden financial support as concerns mount in the industry over a heavier financial burden from regulatory changes the government is pursuing, including a higher tourism fund levy rate and a license renewal system.
The Ministry of Culture, Sports and Tourism revised its guidelines for fund loan support for the second half of 2026 on Aug. 28, adding a facility financing category for the casino business, according to reporting by Seoul Economic Daily on the 17th. It is the first time casino operators have been able to borrow money for new facility construction from the fund since the tourism fund loan program was created in 1998.
Until now, the government had allowed casino operators to borrow only operating funds, capped at 50% of their operating costs over the previous year and a maximum of 3 billion won. Renovations of business premises and purchases of new machine models were also supported within that limit on a temporary basis. With the new facility financing category, casino operators will be able to borrow up to 15 billion won for new construction or expansion and up to 8 billion won for renovations, separately from operating funds. The revised guidelines took effect from the fourth quarter of this year, for which applications were filed at the end of last month.
The expansion of facility loans comes as the government pushes a legal revision that would raise the ceiling on the tourism fund levy for foreigner-only casino operators under the Tourism Promotion Act to 15% of revenue from the current 10%. At the same time, the government is pursuing a plan to require casino business licenses to be renewed every five years. The industry worries that if such revisions take effect, operating profit will decline and leave less room for investment, while shorter license periods will make long-term financing more difficult.
The ministry appears to have accepted some of those arguments in the course of reviewing the revisions. The industry is particularly concerned that the opening of an integrated resort in Osaka, Japan, in the fall of 2030 could draw Asian casino customers to Japan. With competition among neighboring countries intensifying, tighter regulation on top of that could dampen domestic facility and long-term investment, industry officials said.
The industry welcomed the measure itself but remains wary that it may be groundwork for increasing burdens on casinos. "Broadening the scope of loans to include facility funds is a positive step," an industry official said. "But because the levy increase and the license renewal system are being discussed at the same time, we are concerned that the expanded support could become a carrot for tighter regulation."
