South Korea casino body warns policy changes threaten sector recovery
2026-07-23
Source: iGaming Expert
The Korea Casino Association warns that a proposed hike in the casino levy and a new five-year licence term could destabilise an already fragile sector, potentially pushing Korean players to rival markets in Japan and Southeast Asia.
The Korea Casino Association has sharply criticised the Ministry of Culture, Sports and Tourism, arguing that proposed regulatory changes could severely damage operators still struggling to regain their footing after the pandemic. The trade group urged the government to fully reconsider plans to raise a levy on foreigner-only casinos and to introduce a fixed five-year licence term, cautioning that the measures would place an unsustainable financial burden on the industry.
Under the ministry’s earlier announced proposals, contributions to the Tourism Promotion and Development Fund would jump from 10% to 15% of gross gaming revenue. The association countered that applying the levy to revenue rather than net profits ignores the heavy tax load operators already carry, making the increase particularly onerous.
On the licensing front, the association described the move to a maximum five-year term as “undermining the legitimate trust formed by existing operators”. It warned that the constant threat of non-renewal would stifle long-term planning: “If operators are exposed to the risk of license cancellation every five years, employment instability will grow, and long-term investments involving hundreds of billions to trillions of won could shrink.”
South Korea’s casino sector is almost entirely restricted to foreign visitors, with only Kangwon Land permitted to serve locals. That competitive disadvantage is set to worsen as Japan proceeds with plans for three integrated resorts, including MGM Osaka, scheduled to open in 2030. The association noted that any policy weakening the finances of Korean casinos could drive players to Japan and other Southeast Asian markets.
It called for a rethink: “Major competing countries are fostering their casino industries by opening domestic markets or expanding operator autonomy. The renewal license system and the fund ceiling increase should be reviewed, and policy direction should shift toward industry development and support.”
Industry estimates suggest more than 7 million South Koreans would travel annually to MGM Osaka, spending roughly 2.6 trillion won (about £1.4 billion) once it opens. Official data from the National Gambling Control Commission already shows that Korean nationals wagered 4.9 trillion won (£2.7 billion) abroad in 2017, mostly in Macau and the Philippines, underscoring the domestic demand that goes untapped under current restrictions.