Korea Casino Association Flags Risks From Tourism Levy Adjustment for Foreigner-Only Venues

The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, issued a statement in July 2026 highlighting concerns over a proposed rise in the maximum tourism levy from 10 percent to 15 percent of revenue, noting that such a change could accelerate financial strain on properties still emerging from pandemic-related losses.

Details of the Proposed Levy Change

Under current rules the levy caps at 10 percent of revenue, yet the association pointed out that operators face this charge regardless of whether they report profits or operate in the red, a structure unique to the casino sector compared with other tourism businesses; the group argued that lifting the cap to 15 percent would compound recovery challenges because many venues continue to rebuild visitor numbers after COVID-19 restrictions lifted.

Data from the tourism fund itself shows the levy already delivered a record KRW219.5 billion in collections during 2025, a figure 61.7 percent above the total gathered in 2019, which indicates that revenue-based contributions have grown substantially even before any rate adjustment takes effect.

Unique Levy Structure adn Recovery Context

Those who track the industry observe that the revenue-based levy applies year-round and does not factor in operating costs or net losses, which means properties experiencing slower footfall still remit payments proportional to gross takings; the association emphasized that this mechanism differs from standard corporate taxation models and leaves limited flexibility during periods of uneven demand.

Recovery metrics cited by the group indicate that several foreigner-only casinos have not returned to pre-pandemic revenue levels, and an increase in the levy rate would reduce available capital for marketing, staff retention, and facility upgrades that support longer-term visitor growth from international markets.

Additional Regulatory Proposals Under Scrutiny

Besides the levy adjustment, the association also flagged plans to shorten license renewal cycles to five years as another potential burden, explaining that more frequent renewals could raise administrative costs and create uncertainty around long-term investment decisions; operators noted that stable licensing frameworks have historically supported capital expenditure on property improvements that attract overseas tourists.

Figures released alongside the statement show that the tourism fund’s 2025 haul already surpassed earlier benchmarks by a wide margin, yet the association maintained that further rate hikes risk tipping marginal properties toward insolvency before full post-pandemic stabilization occurs.

Industry Position and Timeline

The Korea Casino Association presented its position in a formal communication dated around 24 July 2026, urging policymakers to consider the cumulative effect of multiple regulatory shifts on a sector that contributes directly to national tourism revenue through the existing levy mechanism; the statement referenced both the record collections and the ongoing recovery timeline without speculating on broader economic outcomes.

Stakeholders in the foreigner-only segment continue to monitor legislative developments, with attention focused on how any final rate decision and licensing adjustments would integrate with the current revenue-collection framework that has already produced KRW219.5 billion in a single recent year.

Conclusion

The association’s July 2026 warning centers on the combined impact of a higher tourism levy cap, the revenue-based collection method, record prior-year contributions, and shorter license cycles, all framed against the backdrop of incomplete pandemic recovery for South Korea’s foreigner-only casino operators.