South Korea is considering raising the maximum levy paid by foreigner-only casinos to the Tourism Promotion and Development Fund from 10% to 15% of revenue. This is according to local reports.
The proposal, reported by Edaily, forms part of a broader regulatory overhaul. This overhaul is being discussed by the Ministry of Culture, Sports and Tourism and the National Assembly.
Higher Contributions Proposed
The existing progressive levy system would remain in place, with higher-revenue casino operators facing the largest increases. In fact, officials estimate the proposal could increase annual contributions from the six highest-revenue foreigner-only casinos outside Jeju by KRW30 billion to KRW50 billion (US$20.2 million–33.6 million).
The ministry argues the contribution framework has remained largely unchanged since 1995, despite significant industry growth. According to government data, foreigner-only casino revenue has increased more than tenfold over that period. It reached approximately KRW2.2 trillion (US$1.48 billion) last year.
Industry Raises Concerns
The Korea Casino Association opposed the proposal, warning that higher levies, combined with planned periodic licence renewals and approval requirements for major shareholder changes, could increase regulatory uncertainty and reduce investment.
The proposed changes would not apply to Jeju casinos, which operate under a separate legal framework.
Casino Stocks Decline
Following reports of the proposal, shares of major casino operators Lotte Tour Development, Paradise Co., and Grand Korea Leisure (GKL) fell sharply on July 14.
Analysts also cautioned that higher levies could reduce operators’ ability to invest as South Korea prepares for increased regional competition. This competition includes the planned opening of Osaka’s integrated resort in 2030.
Some market observers, however, believe the proposal is unlikely to take effect before 2028. They suggest much of the regulatory risk may already be reflected in casino valuations.
