South Korean Tourism Groups Issue Joint Call to Halt Casino Levy Adjustments

On August 3, 2026, twelve Korean organizations tied to tourism and casino operations released a joint statement that urged the Ministry of Culture, Sports and Tourism to drop a set of proposed reforms aimed at foreigner-only casino operators, and the move centers on increasing the maximum levy from 10 percent to 15 percent of gaming revenue while introducing five-year license renewal cycles.

The Korea Casino Association joined the Korea Tourism Association, the Korea Hotel Association, and the Korea Association of Travel Agents along with eight additional groups to present their position in one document, and observers note that the collective action highlights shared concerns over how the changes could affect post-pandemic recovery timelines across the sector.

Details of the Proposed Reforms

The ministry's plan would raise the upper limit on the levy applied to foreigner-only casino operators by half, moving the cap from its current 10 percent level to 15 percent of gaming revenue, and the same package includes a shift toward five-year intervals for license renewals that operators currently handle under different terms.

Those who drafted the statement pointed out that the levy adjustment alone represents a significant increase in the financial burden placed on facilities that rely exclusively on international visitors, while the renewal cycle change would introduce new administrative layers that could slow expansion plans already in progress.

Arguments Presented by the Organizations

The joint statement outlines several direct effects the groups expect from the reforms, and they argue that higher levies would cut into profits at a time when many facilities continue to rebuild visitor numbers after COVID-related shutdowns, and reduced margins could limit funds available for upgrades or new integrated resort projects.

Competitiveness forms another core point in the document, because operators in South Korea would face steeper costs compared with venues in Macau, Singapore, the Philippines, and the emerging market in Japan, and the organizations stated that such a gap might steer international tourists toward those lower-levy destinations instead.

Investment in integrated resorts appears in the statement as an area at risk, since higher ongoing levies could discourage both domestic and foreign capital from committing to large-scale developments that combine gaming with hotels, retail, and entertainment spaces, and the groups noted that these projects often require years of stable revenue projections before breaking ground.

Industry Context Around the Statement

The twelve organizations represent overlapping segments of the tourism economy, and their combined statement draws attention to the role foreigner-only casinos play in attracting inbound visitors who contribute to hotel occupancy, travel agency bookings, and related services, and data referenced in industry statements shows these facilities support tourism fund contributions that benefit broader recovery efforts.

Post-COVID recovery timelines remain a recurring theme in the document, because many operators report that revenue has not yet returned to pre-pandemic benchmarks, and any added cost pressure from an increased levy could extend the period needed to reach stable profitability levels across the network of facilities.

License renewal procedures enter the discussion as another operational factor, and the proposed five-year cycle would replace existing arrangements that some operators view as more flexible, and the statement suggests this shift might create planning uncertainty that affects long-term staffing and marketing decisions.

Potential Effects on Market Position

The organizations compared South Korea's position with neighboring markets that maintain different tax and fee structures, and they indicated that the proposed changes could erode the country's ability to compete for the same pool of high-value international visitors who currently choose among several Asian destinations.

Integrated resort developments receive specific mention because these large projects rely on predictable cost structures to secure financing, and the groups stated that an immediate levy increase might delay or scale back commitments already under negotiation with overseas investors interested in the Korean market.

Conclusion

The joint statement from the twelve organizations on August 3, 2026, presents a unified request for the Ministry of Culture, Sports and Tourism to reconsider the levy cap increase and the revised license renewal schedule, and the document ties these measures to risks for post-COVID recovery, profit margins, resort investment, and regional competitiveness. The groups listed specific operators and associations that signed the statement, and they positioned their arguments around factual projections of revenue impact and visitor flow patterns. Further details on tourism fund contributions remain cited in industry statements without additional public figures at this stage.